Supply and Demand of Coffee Aside from the high demand and cost of gasoline these days, coffee is considered the second most traded product on world markets, after oil. "Coffee is grown in more than 50 countries around the equator and supports more than 20 million farmers. In total, up to 100 million people around the world are involved in growing, processing, trading and the retail sale of this product” (Spilling the Beans…, ). In 2001, coffee producers and plantations produced more than 15 billion pounds of coffee while the world market purchased only 13 billion. Overproduction in the coffee industry is not a usual thing and is one of the main reasons why prices vary across the industry. One of the big companies trying to control much of the coffee supply today is Starbuck. Starbucks Corporation is the world's leading specialty coffee retailer, roaster and brand. Starbucks purchases, roasts and sells whole bean and brewed coffee, espresso drinks, cold blended drinks, an assortment of food products, coffee-related accessories and equipment, a selection of premium teas and a range of records compact. Starbucks has more than 8,700 locations across North America, Latin America, Europe, the Middle East and the Pacific Rim and continues to grow. When we consider coffee, Starbucks has built a global reputation and become a huge success. A Seattle Post article describes the alliance Starbucks is making to ensure a sustainable supply of high-quality coffee is produced in Latin America. "Starbucks Chairman and CEO Orin Smith said the alliance was partly the result of his company's efforts to pass on the 'high price' of a cup of coffee to farmers." (Lee, 2004). He says the high price allows them to pay the highest price to farmers. However, high prices charged to suppliers may demonstrate that money is reaching farmers without being diverted. Starbucks' overall goal with this alliance is to purchase 60 percent of its coffee according to agreed standards by 2007. "The agreement reflects the growing strength of the premium coffee market and efforts to exploit for the benefit of small farmers” (Lee, 2004). ).Regarding the supply, demand and price of coffee, certain factors can cause these characteristics to vary upwards or downwards. Weather is an example that affects coffee consumption.