Coffee Flashcards
1
Q
Important figures
A
Brazil is the largest coffee producer in world - 2015 produced 20% of worlds coffee
2.5 million tonnes per year
Only around 10% of the price of coffee is returned to farmers - sell unprocessed beans which are cheap
TNCs have control in regards to the trade - high bargaining power - they choose who to get from. Lots of substitute farmers - usually go for cheapest
Lots of coffee is monoculture and farmed intensively in Vietnam and Brazil
Huge production of coffee in Vietnamese dropped prices from 1 dollar per kg in 2000 to 68p per kg in 2001.
Unsustainable for farmers
2
Q
What does fair trade bring about
A
Price stability
Premium payments
Market access and differentiation
