Financialization and Changes in the Social Relations along Commodity Chains: The Case of Coffee

Abstract

This article examines distributional implications of the restructuring of international coffee markets that has occurred since the collapse of the International Coffee Agreement in 1989 and market liberalization in coffee producing countries under structural adjustment programs. It is argued that increased financial investment on international commodity exchanges, together with market liberalization, have given rise to opportunities and challenges for actors in the coffee industry. Given the heterogeneity of market actors, these tend to exacerbate inequalities already present in the structure of production and marketing of coffee.

JEL classification: L11, O13, G19

Keywords

speculation commodity markets financialization commodity price behavior accumulation

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