Background and International Coffee Organization

The purpose of this report is to describe the current situation in the global coffee market, role of demand and supply in coffee market, as well as how demand and supply affect the price of coffee and to determine price volatility of coffee. This report illustrates two significant situations for coffee the last 13 years.
Coffee is one of the most popular drinks in the world, it has wonderful aroma, refined taste and strong tonic effect, and also it is considered as one of the most strategically important raw materials in the world trade (Nestle Coffee Report 2004). Today it is wonderful drinks accompanies business meetings, parties, restaurants and bars (Kjeldgaard Et al. 2011).