ivities such as branding, differentiation, flavoring, and marketing. For example, the recent growth of demand for soluble coffee that is among the most profitable area of the business has made the sector capture increased value from less expensive raw materials such as robusta coffees. Second, the non-coffee constituents incorporated in the retail price of coffee such as marketing, packaging and wages have developed and now show a much more important share of the entire retail price than the real coffee itself. Interestingly, a number of states that import coffee, makes billions of dollars annually in taxes from coffee. For instance, in some states, these taxes alone are estimated equivalent to the coffee revenue obtained by the producing states (Adcock & Halborg, 2001). Volatility in the producer’s share of the retail value will still be more affected by changes in the price level of green coffee than by changes in any other cost constituents because the value-adding costs do not depend on the price of green coffee. Green coffee prices are t...