Coffee Flashcards
Coffee is the…………….cash crop
Number One
How many families in the world are involved in growing the crop
25 million
How many cups are consumed each day
2 billion - planets most popular drink
How many people does it employ worldwide and what percentage of the world’s agricultural economically active
100 million
35%
Where is coffee produced and why
Tropics - rain, heat and altitude
Which country is the largest producer
Brazil - 1/3 all coffee production
Uganda is………on coffee production with it making up…%exports and…%workforce
Reliant
75%
80%
LEDC’s produce….cost coffee so stay…..whilst MEDC manufactures get…….
Low
Poor
Richer
Which country is the highest consumer of coffee
Finland
Give 6 negatives
- 1989 ICA (which controlled tariffs) collapsed
- Global demand has fallen
- Overproduction
- Coffee crisis for growers
- Monopolised by larger companies such as Nestle
- Packaging companies get 13% of all profits
Expand on the ICA collapsing in 1989
Coffee became much more freely traded, and prices fell.
o 1980 to 2000 prices fell by 64%
o Average price paid to producers reduced by 80%.
Give some evidence of global demand falling
o USA consumption has fallen from 36 gallons per capita (1970) to 17 gallons per capita (2000).
o Soft drinks have more than doubled.
What is the impact of overproduction
o Increased competition so cheaper prices and unsold crop.
o The power lies with buyers- 6 international trading companies control more than 80% of coffee exports.
Why is there a coffee crisis for growers
o Overproduction so crop is being wasted and not sold
o Affecting community as families can’t afford school fees and lack of GDP - decreases revenue, Gov = less money to spend on education, health care + infrastructure
o Conflict between local farmers as too much competition.
Give 5 positives of Coffee production
- Reduces exploitation as means farmers get better income
- Farmers income has increased by 60%
- Allows communities to build required building such as health centres and school.
- If products get ruined, farmers will still get profit.
- Retail sales have dramatically increased
