Coffee Flashcards
Facts about Coffee (Brazil and USA)
BRAZIL
-7th largest economy in the world
-largest coffee producer, in 2015 it exported 20% of global coffee
-slowing of low-skilled economic migrants to the USA
USA
-largest importer, in 2015 it imported 20% of global coffee
What environment does coffee grow in?
-hot, wet areas close to the equator-grown in nurseries, after 6-12 months moved to farms, produce beans used to make coffee
-most coffee is grown on small holdings rather than large plantations
What are the two main types of coffee?
Arabica- higher quality, more expensive, grown in SA and Africa, account for 70% of world coffee
-Robusta- grown in Western Africa and Asia, cheaper, lower quality
What are the 4 main issues in coffee production?
-beans can be susceptible to disease
-insects and pests
-the weather
-fertilisers and pesticides are expensive and have to be exported in
Why does coffee prices fluctuate?
due to supply and demand
-Vietnam was exporting over 450 million kg of coffee per year, causing the price to fall, meant South American Coffee growers went out of business- couldn’t afford to produce it at such a low price- Vietnam flooded the market
Where does the profits go?
-only 7-10% price of coffee bought in supermarket goes to farmers, as they only sell the unprocessed bean
-TNC’s buy these, roast them, and receive the majority of profits by selling this to customers
In Terms of the Coffee Trade, what is the ‘Race to the Bottom’?
coffee producing countries compete with each other to cut wages, labour regulations and environmental protection in order to attract TNCs
What is the Fairtrade Foundation and what do they Aim to Do?
-set up in 1992 to help promote brands that support coffee farmers
-works with producer organisation and aims to set a minimum fairtrade price, helping to prevent farmers from going into poverty
-helps to maintain environmental standards, also prohibits forced labour and child labour
