WHERE DOES YOUR COFFEE DOLLAR GO - THE DIVISION OF INCOME AND SURPLUSALONG THE COFFEE COMMODITY CHAIN

This article analyzes the division of the total income and surplus gen erated along the coffee commodity chain during the period 1971-1995. U ntil the late 1980s, coffee growers and producing states retained over a third of the total income and about half of the total surplus that was available. This was due in part to the collective actions of coffe e-producing states, which led to the imposition of a regulatory regime involving export quotas, creating rents for the producing countries, By the late 1980s, coffee TNCs had consolidated their control over cor e markets, and began to use their market power to increase their share s of both income and surplus. This shift was greatly accelerated by th e breakdown of the export quota regime in 1989. The article concludes that these results necessitate a reformulation of commodity chain anal ysis.