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Abstract
Although Brazil is still the world’s leading exporter of green coffee, current
studies demonstrate that Brazil has been losing power in the market, because the existing
competition (rivalry and possibility to enter) imposed by countries, such as Colombia and
Vietnam, is strong enough to make this market very competitive. Therefore, this paper
assesses the competitive profile in the world market for green coffee using econometric tools
usually employed in antitrust analysis. To evaluate the consumer behavior, price elasticity
of the world demand for green coffee was estimated, by coffee type, using the Multinomial
Logit Demand model. To evaluate the supply behavior, tests for market share instability
were conducted, in terms of quantity, by using cointegration in panel data. Results reveal
an increased competition for the Brazilian coffee from the point of view of the demand, with
the maintenance of market shares over time.