The market for coffee is in MEDCs such as the UK and USA.
The production of tea and coffee is controlled by multinational companies.
They own plantations and take control of the processing stages.
The multinational companies also get a very large amount of the profit.
The developing countries get low paid jobs and some income from tax.
The developing countries are so desperate for money; they will sell the coffee at any price. They are not able to ask for more or the developed countries will buy their coffee elsewhere.
The developing countries can't manufacturer there own coffee themselves (if they did they would be able to take the profit) because they don't have the money to import goods or buy equipment.
Growers get 10% of profit, exporters get 10%, shippers and roasters get 55% and retailers get 25%.
The price of a coffee jar has gone up and the price of coffee beans have gone down. This means less money for LEDCs and more money for MEDCs.
Brazil used to be in a colony which prevented it from becoming more developed because Spain used to control its trade. Brazil would be expected to provide raw materials for Spain at little of no cost.
