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Consumption and Globalization

In: Social Issues

Submitted By steveo1767
Words 276
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“The global economic interdependence of today’s world is not a totally one-sided system” (Crapo, 2013). When you buy a tall coffee at Starbucks these days chances are you are drinking coffee from Guatemala. The Central American country is the top provider of coffee to the U.S. coffee chain. Coffee farmers need to account for the changes brought on by the ever changing global market. Globalization has had a profound effect on the coffee industry both directly and indirectly. One of the main effects of globalization on the coffee market has been the impact on prices since the 1970’s. The price of coffee peaked around the late 1960’s at $3.00 per pound. Due to increased globalization, prices have dropped because of an increase in production not only in South America but worldwide. Even though there has been an increase in demand, it has been met with overproduction, which has driven down prices. Another result is that farmers have formed cooperatives and begun to farm the abandoned land for themselves. These cooperatives are struggling against the massive production of Brazil and Vietnam, and are having trouble selling their beans. The impact trickles down even further, the children of the farmers are being pulled out of school so that they can work in the fields with their parents. This is necessary to make ends meet. Even those with their own fields cannot make a living off of the price that the Guatemalan growers are getting from the middlemen. This is another problem; middlemen are taking part of the profit from the growers.
Reference:
Crapo, R. H. (2013). Cultural anthropology. San Diego, CA: Bridgepoint

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