Henley, 2001). Increased access to financial and future markets has enabled some coffee producers to better manage risk. This will have an effect on the supply, making it easier to smooth shipments across wide cyclical production swing that happen especially in Australia. The oversupply of the market was not entirely unexpected, though the depth of its effect has been a shock to most participants and observers. A combination of markets and policy failures has left coffee producers without access to realistic information about growth elsewhere, while policy signals separated them from the implications of expanding production, nevertheless, even with good details, it is not probable that many coffee producers in Australia would have had the potential for an appropriate feedback due to their scarce resources as well as the lack of viable income options in the rural regions. Roasters have reacted to the shift in supply adapting their technology to promote their utilization of lower-cost natural arabicas and robustas (Adcock & Halborg, 2001). Moreover, they have established greater flexibility in their blends to react to lower-priced availability, though there is recent anecdotal evidence that this strategy may have sometimes led to a negative consumer response as coffee quality decreased. The rising focus or roasters has promoted them to work with lower inventories through pushing increased just-in-time demands down to their suppliers. Such demands have favored the largest trading corporations and resulted in substantial concentration in this part of the supply chain as well. The implications of the decrease in coffee prices have been a decrease in the share of the final retail price, which is obtained by Australia and other coffee producing states. This decrease has been caused by two factors. First, the coffee roasting and retail sectors have made profits through creating new products by taking advantage of different value adding act...