A key reason coffee farmers receive low prices is government-created monopsony: many governments make a state organization the only legal buyer of coffee, then resell on the world market, keeping the price paid to farmers down.

causalpending

Speaker

Mike Munger

Evidence Quote

economists call that a monopsony a buyer might have market power

Source

Mike Munger on Fair Trade and Free Trade 12/3/2007EconTalk
Created: 6/17/2026, 10:31:24 AM

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