Coffee Industry
By: Andrea Carmona • Research Paper • 361 Words • March 5, 2015 • 1,073 Views
Coffee Industry
Coffee Industry
I think that because of in México the main coffee producers are small, they face many problems to be able to commercialize their product to high prices internationally, this strongly affects their costs and have an increasingly smaller returns.
Within this, one of the main problems is that there is no support for producers to offer their product in the domestic market rather than the external, and although they have problems in this sector will be greater problems for the international sector. If the government promote the domestic consumption of product would help because consumers prefer Mexican coffee before one Colombian or Brazilian, all this would lead México to positioned itself as one of the best coffee producers in the world as it was before the coffe industry was forgotten.
For the production not only requires the government to support economically, you should also invest in technology and machinery needed to have a better production and be able to offer better quality product to consumers. Having quality controls could reduce costs for producers as to decrease the amount of product that is not in the proper condition to be sold, namely their variable costs.
If you make improvements in the system used in the industry, you will be able to have better control these are some of the things that can affect both your fixed and variable costs, such as climate, consumers, your competitors.