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Harpal Chima 12A Economics & Business Studies Oversupply has caused the current problems in the coffee market. Discuss the solutions Coffee is currently the second largest commodity market in the world behind oil. The market expands across the entire globe and its effects reach the developed and developing countries alike. Most cocoa beans are grown in the developing countries and have been done so for the past century but in recent times the cost of cocoa has rapidly decreased. As the price of the cocoa beans decrease it has caused large-scale problems in the market and oversupply of cocoa has caused this to a large extent. Oversupply has occurred in the market because of uneducated farmers increasing their amount of output. As the farmers notice the price of cocoa beans decrease they tend to think logically and decide by increasing there output they can sell more and thus get a greater...

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