🌍Case Study - Coffee as a Commodity Flashcards
Where is the bean belt?
Between the tropics of Cancer and Capricorn, mostly around the equator
Which countries are the biggest coffee producers?
Brazil, Vietnam, Colombia, Indonesia and Ethiopia
What percentage of coffee production takes place in developing countries?
90%
In what conditions does coffee grow best?
15-30 degrees and 1500-3000mm rainfall
Where is the most coffee consumed?
Europe and North America
Where does coffee consumption mainly occur?
Developed, industrialised countries
Where has coffee consumption increased over the past few years?
Russia and China
Which countries are the biggest importers of coffee?
US, Germany and other EU countries
How much coffee is consumed around the world every year?
12 billion pounds
How does Fair Trade impact coffee growers?
To be Fair Trade certified, growers must pay heavy fees, so many small farmers are not certified, despite meeting or exceeding the standards
Which step has the highest profit margin in the chain?
The roasters
Why is the pricing of coffee an issue for growers?
They do not receive a fair price, and farmers don’t benefit from the trade relationship created
Who is the current coffee market dominated by?
Four main TNCs
How have small coffee producers in Ethiopia been affected by free trade?
Public businesses have been privatised and restrictions on foreign ownership removed, so they have lost their share of world trade
Who benefits from coffee trade in its current form?
The roasters and retailers in developed countries as it is sold for a much higher price than by the farmers
How many people worldwide depend on coffee for their livelihoods?
25 million
How much is the global coffee market worth?
$42.5 billion
How many nations produce coffee?
49
What are the importances of coffee to HICs?
Service sector jobs in coffee chains
‘Healthy’ alternative to pubs in US and UK
Boosts other local shops as they target passing trade
Increasing market, fashionable
What are the importances of coffee to LICs?
Thousands employed in bean production
Single product economy in countries such as Colombia
Commodity in which they can trade with HICs
Which continent produces the majority of coffee?
South America
How has coffee production changed since the 1960s?
It has more than tripled
Which countries consume the most coffee per capita?
Finland, Norway, Denmark, Holland, Sweden
Why are Scandinavian countries the biggest consumers of coffee?
Taxes on alcohol, coffee is cheaper
Cold climates
Rich countries, disposable income
