lesson 9- coffee

Question 1

What are the challenges coffee has an international trade commodity have faced in the past 50 years?

Answer 1

1. Climate change- coffee is grown in a certain climate belt under certain conditions (Southern Hemisphere- central America etc)-> if this changes, crop yields reduce
2. Risk management in response to price volatility- diseases ruining crops-> prices increasing
3. Growing costs of inputs- inflation on energy e.g. Germany, labour- countries are developing, people want to be paid more
4. Sustainability of the sector- world is more aware of sustainability issues-> coffee must be grown differently e.g. pesticides, food miles etc
5. Development of world consumption- diff types of coffee e.g. 1998 rise in milder, high qual coffee

Question 2

Which country is the world’s most powerful coffee producer?

Answer 2

Brazil

Question 3

How has Vietnam’s coffee industry changed over time?

Answer 3

• 1986- Vietnam introduced Doi Moi policy (a renovation of Vietnam)- shifted post war economic focus to market-orientated, since production boosted from 18,400 tonnes to 1.9mill
• Facing an upward increase of coffee production d2 2007 new coffee agreement-> increased its production by 1400%
• Now the second biggest coffee grower (after Brazil)

Question 4

Where is there growth/decline in world production of coffee?

Answer 4

• Over last 50 years, steady growth, BUT SA remains world biggest coffee producers- 46%
• Dynamics of world coffee production is characterised by considerable instability e.g. disease in 2012/13 meant central America was badly affected by coffee leaf rust
  (ref these as challenges)
• Asia and Oceania have recorded the strongest production growth over the last 50 years, esp in last 20
• Production in Africa= negative growth over last 50 d2 structural factors- low fields and ageing coffee trees

Question 5

Name 2 countries that rely on coffee for more than 50% of their earnings:

Answer 5

Burundi, Uganda

Question 6

Which country is the biggest re-exporter of coffee?

Answer 6

Germany- 50% share in re-export of coffee- increasing each year

Question 7

Which country is the biggest coffee consumer?

Answer 7

Finland

Question 8

In 2020, what was the value of the global coffee market?

Answer 8

$446 billion- doubled in 8 years

Question 9

Where does the UK receive its coffee from?

Answer 9

30% of exports from Brazil
20% of exports from Vietnam