...Coffee Barometer 2014 Sjoerd Panhuysen & Joost Pierrot 13 / ha India 5 mio Vietnam 22 mio bags 40 bags / ha 10 / ha Ethiopia 6 mio 7 Indonesia 13 mio bags 1 Hivos IUCN Nederland Oxfam Novib Solidaridad WWF Content 2 1 Introduction Coffee, cultivated in more than 80 countries in Central and South America, Africa and Asia, ranks among the world’s most valuable agricultural commodities. Coffee cultivation provides livelihoods for 20-25 million farming families [4]; and engages over 100 million people in its producing and processing. Smallholder coffee farmers, together with their families and rural workers produce over 70 per cent of this labour intensive crop. Women comprise half the productive workforce and play a crucial role that often goes unnoticed. However, to retain the involvement of rural youth is a challenge as they often aspire to a different future and seek employment outside the coffee sector. Historically, declining terms of trade and price volatility have plagued coffee production. This makes poverty reduction, which is essential to ensure the sustainability of the sector, both an important and difficult challenge. Figure 3 presents an overview of the main social, economic and environmental challenges for smallholders and plantation labourers. These problems at the production level are compounded by the effects of changing climatic conditions. The International Coffee Organization [9] acknowledges that the world coffee sector is facing major challenges...
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...[pic] Coffee, Cooperation and Competition: A Comparative Study of Colombia and Vietnam Authors:[1] Adriana Roldán-Pérez Maria-Alejandra Gonzalez-Perez Pham Thu Huong Dao Ngoc Tien Research assistants (Colombia): Franz Xaver Riegler Stephanie Riegler Catalina Tabares Melissa Eusse Research assistant (Vietnam): Nguyen Thu Hang Table of contents List of figures 4 List of tables 4 Acronyms, abbreviations and definitions 6 Weights and measures 6 Abstract 7 1 Introduction 8 1.1 Research objectives 9 1.1.1 General objectives 9 1.1.2 Specific objectives 9 1.2 Research methodology 9 2 Literature review on the global value chain (GVC) of coffee 11 2.1 Theory of global value chains 11 2.1.1 Introduction to the value chain concept 11 2.1.2 Global commodity chains 12 2.1.3 Value chain analysis 13 2.1.3.1 Definition 13 2.1.3.2 Methodological aspects of value chain analysis 15 2.1.4 Governance 15 2.1.5 Barriers to entry and rent 16 2.1.6 Upgrading in value chains 16 2.2 Overview of the world coffee market 17 2.2.1 World coffee production 17 2.2.2 Production by type of coffee 18 2.2.3 Coffee producing countries 19 2.2.4 Stocks in producing countries 20 2.2.5 World coffee exports 21 2.2.6 World coffee consumption 24 2.2.7 The International Coffee Organisation and coffee prices 29 2.2.8 Mapping the global value chain of coffee 31 3 Analysis of Colombia and Vietnam’s participation in the coffee value chain 33 3.1 Vietnam’s...
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...Coffee and Global Sustainability Coffee is everywhere. From specialty espresso shops in Italy to the corner convenience store, it is near impossible to go anywhere in the world and not be able to purchase a cup of joe. And it is big business too. Since 1950 coffee production has grown by almost 200 percent, and after oil, coffee is the most important traded commodity in the world.[i] Coffee is so prevalent affluent societies take it for granted as an affordable part to their everyday life. For the growers in developing countries, although they may rarely drink the product they produce, it is their livelihoods. This paper will take a look into the past and present of coffee and evaluate and present solutions, both environmentally and socially, for the continued sustainability of the world’s most influential drink. A History of Exploitation To understand the implications of coffee’s impact on society and the global economy, it is important to start at the beginning. Coffee berries were first eaten by slaves who took it with them as they were taken from what is present day Sudan to Yemen and Arabia. This is where coffee as we know it today was born. It is believed that the first beans were roasted and brewed around 1000 A.D. in Arabia. By the 13th century, coffee was a common drink among Arabs and coffeehouses were opened in Mecca and throughout the Arab world. By the 15th century, coffee was cultivated as a crop throughout Arabia. However, the Arabs banned the exportation...
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...Agriculture and Rural Development Discussion Paper 3 The World Bank Coffee Markets New Paradigms in Global Supply and Demand Bryan Lewin Daniele Giovannucci Panos Varangis First printing or Web posting: March 2004 ©The International Bank for Reconstruction and Development Agriculture and Rural Development Department 1818 H Street, N.W. Washington, DC 20433 Agriculture and Rural Development Discussion Papers is an informal series produced by the Agriculture and Rural Development Department of the World Bank. These papers raise concepts and issues for discussion in the broader development community and describe ongoing research and/or implementation experiences from the Bank. The findings, interpretations, and conclusions are the authors’ and should not be attributed to the World Bank, its management, its Board of Executive Directors, or the countries they represent. Some of the numbers quoted are estimates or approximations and may be revised at a later stage. About the authors Bryan Lewin was previously the Economist of the Association of Coffee Producing Countries and now works in the Agriculture and Rural Development department of the World Bank on commodities and risk management. Daniele Giovannucci is a former corporate executive and market strategies expert. He advises international agencies and governments and is a senior consultant for The World Bank Group. Panos Varangis is a Lead Economist in the Agricultural and Rural Development department of the World...
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...Research Paper How Starbucks Coffee changed the Coffee Industry Submitted by JAVIER SEPULVEDA Prepared for Jeffrey Bramlett BUSN 6120, Managerial Economics Spring 1 semester, 2013 Section OF Webster University March 2, 2013 CERTIFICATE OF AUTHORSHIP: I, xx, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Javier Sepulveda 03/02/2013 Signature Date ABSTRACT The importance of coffee to the world economy cannot be overstated. It is one of the most valuable primary products in world trade, in many years second in value only to oil as a source of foreign exchange to producing countries. Its cultivation, processing, trading, transportation and marketing provide employment for hundreds of millions of people worldwide. Coffee is crucial to the economies and politics of many developing countries; for many of the world's Least Developed Countries, exports of coffee account for more than 50 percent of their foreign exchange earnings. Coffee is a traded commodity on major futures and commodity exchanges, most importantly in London and New York. In my research Paper, I would like to review and analyze the impact of Starbucks Coffee in the coffee industry as it growth has become synonymous for coffee with a new type of café culture from its birth in the 1970s...
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...Commodity Research – Coffee Confidential: Not for distribution or publication The Coffee Market – a Background Study Oxfam: International Commodity Research – Coffee Confidential: Not for distribution or publication Acknowledgements This background study was written by Oliver Brown, Celine Charveriat and Dominic Eagleton. The authors want to thank the following persons for their useful comments: Mehmet Arda, Maria Jose Barney, Bart Ensing, Penny Fowler, Brian Lewin, Lamon Rutten, Denis Seudieu, Robert Simmons, Marcelle Strazer, Kevin Watkins, Michael Wheeler and Pete Williams. i Oxfam: International Commodity Research – Coffee Confidential: Not for distribution or publication EXECUTIVE SUMMARY '[When prices are low] , we sacrifice a lot in the way of clothing, tools and food. We can’t afford meat, we had to buy other parts of the animal which were inferior. We can’t eat eggs, or drink milk...When the children get ill we don’t have the money to take them to the doctor… One always lives with uncertainty, always in debt; it's always borrow here, borrow there; we live dependent on credit... Of course, there is no peace living with such uncertainty. You don't know whether to take out a loan or not because you could lose the money you've invested.’ Vitelio Menza, small coffee producer in Colombia1 Providing livelihoods to farmers in developing countries is a crucial challenge for reducing world poverty. When fairly priced, export crops, such as coffee or...
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...no. 1-0023 Starbucks Coffee Company* On an overcast February afternoon in 2000, Starbucks CEO Orin Smith gazed out of his office window in Seattle and contemplated what had just occurred at his company’s annual shareholder meeting. In prior years, the meeting had always been a fun, all-day affair where shareholders from around the country gathered to celebrate the company’s success. This year, however, Smith and other senior Starbucks executives heard an earful from the activist group Global Exchange. A human rights organization dedicated to promoting environmental, political, and social justice around the world, Global Exchange criticized Starbucks for profiting at the farmer’s expense by paying low prices and not buying “fair trade” beans. Not only did the activists disrupt the company’s annual meeting to the point that the convention hall security police asked the activists to leave, but they also threatened a national boycott if the company refused to sell and promote fair trade coffee. Although Smith strongly disagreed with using the shareholders meeting as a public forum, he knew there was a strong likelihood his company could face serious reprisals if it did not address the issues raised by Global Exchange. Fair trade began after World War II as religiously–affiliated, non-profit organizations purchased handmade products for resale from European producers. During the 1970s and 1980s, the concept evolved further into buying crafts from low-income, third-world producers...
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...A System Dynamics Study of Instability in the Colombian Coffee Market by Juan Fernando Perez Velasquez Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Philosophy in System Dynamics System Dynamics Group Department of Geography University of Bergen 2010 Abstract The coffee market in Colombia is highly unstable, being more unstable in the last 20 years (since the removal of the ICO agreement). During 1980 and 1990 the coffee price was varying around 8% around a mean and over the last 20 years it has been oscillating around 15% to 20% around a mean. The coffee market presents an 8 to 11 years cycle in price and production. Coffee market is well known for its volatility and for the crisis that producers are confronting, i.e., poverty, low prices, etc. The main causes for this crisis are the characteristic behaviors of the coffee market itself, which presents price instability, resource unsustainabillity, and inequity along the commodity chain (specially for coffee growers), the same characteristics of other commodity markets. In this paper we focused on the first of the causes, price instability, and so we created a System Dynamics model of the Colombian coffee sector that captures the structure of that market, the delays and feedbacks present on it. With this research we intended to answer the following questions: Why is the Colombian coffee market so unstable in price and quantity? And what can be done to reduce the instability...
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...Schneiderova Sandra Merkel Nicole Klötzer Carolin Wiese Samuel Weimer Nicole Schröder Date: 11th June 2010 Executive Summary In the following, two companies and their strategic positions within the coffee consumer goods industry will be described. The focus lies on Nestlé and its competitor Kraft Foods. As coffee is one of the most popular products worldwide, this is a very demanding business. It is necessary to provide high quality products, especially when working in the more affluent segments like Nestlé and Kraft Food do. Several political, economic, social, technical, environmental and legal aspects have an impact on the industry branch they are operating in. In addition, there is not only a differentiation in Robusta and Arabica coffee, but also in filter coffee, portioned and non-portioned soluble coffee. To satisfy the diverging needs of all customers, different strategies are applied to gain more market share. In this report it is examined how those companies operate in the specific business context, what they have in common and where they differ. Furthermore, an analysis of the industry attractiveness, of the market segmentation and value chain and an overview of resources and capabilities are part of this paper. After intense research we were able to draw conclusions about their strategic positions and what Nestlé could do to improve its strategic position. 2 Table of Content Executive Summary 2 1 Introduction 4 2 ...
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...FACTORS AFFECTING SMALLHOLDER COFFEE PRODUCTION IN KARAGWE DISTRICT, TANZANIA FACTORS AFFECTING SMALLHOLDER COFFEE PRODUCTION IN KARAGWE DISTRICT, TANZANIA By Rodrick Wilbroad Mugishagwe A Dissertation Submitted in Partial/Fulfilment of the Requirements for the Degree of Masters of Science in Economics (Project Planning and Management) of Mzumbe University 2015 CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, A dissertation entitled Factors Affecting Smallholder Coffee Production in Karagwe District, Tanzania, in partial/fulfilment of the requirements for award of the degree of Master of Science in Economics (Project Planning and Management) of Mzumbe University. ___________________________ Major Supervisor ___________________________ Internal Examiner External Examiner Accepted for the Board of ………………………………… _________________ DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD DECLARATION AND COPYRIGHT I, Rodrick Wilbroad Mugishagwe, declare that this dissertation is my own original work and that it has not been presented and will not be presented at any other University for a similar or any other degree award. Signature ____________________________ Date ________________________________ © This dissertation is a copyright material protected under the Berne Convention, the...
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...Introduction Remon coffee shop is a local coffee shop near Finchley road station. In order to continually develop and improve our house blend, we have been working diligently with the same roasters for over twenty five years, regularly visiting their premises to work through cupping and tasting. Remon Coffee and Bakery offers hand-crafted coffee, patisseries and freshly baked Artisan breads; our signature dishes are Arancinis and Cannoli Remon. For a coffee house, success of the business is in the finest and freshest produce. 3. Strategy "Our mission is to serve you the finest quality products" we partner with our suppliers to bring a family style service and our staff are equally as important as our customers we are very much dedicated to reducing waste, all our packaging is bio degradable and or recycled material and we work closely with our suppliers to reduce their waste too- quality is the foremost important aspect of our business, we sell all our products on the same day, we use only the best ingredients and we continually strive for innovation We partnered with Vitos Bakery bringing you the freshest Connoli and Aracini together with some amazing Sicilian delicacies fresh every day We already have a loyal customer base who tell us they travel some distance for our produce simply because its delicious, fresh and taste exactly as it would in Sicily Our fresh bread and Patisserie partners "The Artisan Bakery Co" produce Par-baked produce for us everyday...
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...Coffee Coffee is a dark brown/black naturally caffeinated drink made from passing water through ground roasted coffee beans. Coffee is used as a great medicine to help patients, and it can be taken as a popular drink all over the world. Caffeinated coffee drinks are largely consumed by people around the world regularly. It has become an internationally popular drink in almost every country. Coffee is so important to our daily lives that some people cannot live a day without drinking it. The word coffee was derived from the Ottoman Turkish kahve, via the Italian caffè. The Turkish word was derived from the Arabian word qahwah. Arab lexicographers report that qahawah originally referred to wine. Since this beverage was thought to dull one’s hunger the word, qaha which signifies “to have no appetite” was given to it. Other etymologies also indicate that the Arab form was a loanword from an Ethiopian source word Kaffe, which refers to the highland in the southwestern Ethiopia where the plant grows indigenous. However, the word that is used in that area is bunn, the native Shoa name būn meaning a native plant. Today coffee has different names all over the world, like caffè in French, Kaffee in Germany, kahvi in Finland etc. No matter what it is called, the Ethiopian people were the first to recognize the stimulating effect of the coffee beans that grow as a coffee plant. No one knows who among the natives earlier than 17th century grew coffee in Africa or used it as a stimulant...
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...1. Coffee 1. Coffee This chapter defines coffee according to the H.S. code of the Tariff Schedule (Fig. 1-1), covering green coffee beans, regular coffee, instant coffee, and extracts, etc. Coffee beverages (excluding the products categorized as milk beverages) are discussed in the soft drink chapter instead of this chapter. Fig. 1-1: Scope of coverage for coffee in this chapter Item name Green coffee beans Regular coffee Instant coffee Coffee extracts, essensses Description Seeds prepared by removing the outer and inner skins and pulp from the fruits of coffee tree produce. They are dried in the next processing step. Roasted coffee beans prepared by roasting green coffee beans from coffee tree fruits. This category also includes coffee products prepared by grinding these roasted beans. Coffee in soluble powder, granules, and other solid forms prepared by drying extracts of roasted coffee beans. Concentrated extracts of coffee beans, which are used for industrial or processing purposes, such as canned coffee, coffee candies and other confectioneries, etc. H.S. code 0901.11-000 0901.12-000 0901.21-000 0901.22-000 2101.11-210 2101.12-121 2101.11-100 11-290, 12-110 12-122 I. Points to Note in Exports to and Sales in Japan 1. Relevant Laws and Institutional Regulations (1) Regulations and Procedural Requirements for Importing to Japan The importing of coffee is subject primarily to 1) the Plant Protection Act, 2) the Food Sanitation Act, and 3) the Customs Act. Dried...
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...1. Coffee 1. Coffee This chapter defines coffee according to the H.S. code of the Tariff Schedule (Fig. 1-1), covering green coffee beans, regular coffee, instant coffee, and extracts, etc. Coffee beverages (excluding the products categorized as milk beverages) are discussed in the soft drink chapter instead of this chapter. Fig. 1-1: Scope of coverage for coffee in this chapter Item name Green coffee beans Regular coffee Instant coffee Coffee extracts, essensses Description Seeds prepared by removing the outer and inner skins and pulp from the fruits of coffee tree produce. They are dried in the next processing step. Roasted coffee beans prepared by roasting green coffee beans from coffee tree fruits. This category also includes coffee products prepared by grinding these roasted beans. Coffee in soluble powder, granules, and other solid forms prepared by drying extracts of roasted coffee beans. Concentrated extracts of coffee beans, which are used for industrial or processing purposes, such as canned coffee, coffee candies and other confectioneries, etc. H.S. code 0901.11-000 0901.12-000 0901.21-000 0901.22-000 2101.11-210 2101.12-121 2101.11-100 11-290, 12-110 12-122 I. Points to Note in Exports to and Sales in Japan 1. Relevant Laws and Institutional Regulations (1) Regulations and Procedural Requirements for Importing to Japan The importing of coffee is subject primarily to 1) the Plant Protection Act, 2) the Food Sanitation Act, and 3) the Customs Act. Dried...
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...Kasetsart J. (Soc. Sci) 33 : 142 - 151 (2012) «. ‡°…µ√»“ µ√å ( —ߧ¡) ªï∑’Ë 33 : 142 - 151 (2555) Demand Analysis of Ethiopian Coffee in Japan Wolday Gebrehiwot1,* and Apichart Daloonpate2 ABSTRACT Ethiopia is the largest coffee producer in Africa. One of the major markets for Ethiopian coffee is Japan. This paper, therefore, analyzed the determinants of demand for Ethiopian coffee in the Japanese market. The Linear Approximate Almost Ideal Demand System (LA/AIDS) model was used to estimate a system of expenditure share equations for Ethiopian coffee and its competitors. Quarterly time series data from 1988 to 2009 were obtained for the analysis. Empirical results indicated that most of the slope coefficients were statistically significant and in accordance with microeconomic theory. The demand for Ethiopian coffee was determined by its price, price of substitutes, the contamination dummy variable, and total expenditure in the Japanese market. Ethiopian coffee demand was found to be elastic and this has an implication in pricing policy. Keywords: Linear Approximate Almost Ideal Demand System (LA/AIDS), expenditure share, coffee, Ethiopia, Japan ∫∑§—¥¬àÕ ‡Õ∏‘‚Õ‡ªï¬‡ªìπª√–‡∑»ºŸº≈‘µ°“·ø√“¬„À≠à∑ ¥ â ’Ë ÿ „π∑«’ª·Õø√‘°“ Àπ÷Ëß„πµ≈“¥À≈—°¢Õß°“·ø®“° ‡Õ∏‘ ‚ Õ‡ªï ¬ §◊ Õ ª√–‡∑»≠’Ë ªÿÉ π ß“π«‘ ®— ¬ π’È ∑”°“√ «‘ ‡ §√“–Àå ªí ® ®— ¬ ∑’Ë ‡ ªì π µ— « °”Àπ¥Õÿ ª ß§å ° “·ø®“° ‡Õ∏‘‚Õ‡ªï¬„πµ≈“¥≠’˪ÿÉπ ‚¥¬„™â·∫∫®”≈ÕßÕÿª ß§å ‡™‘ ß ‡ â π „°≈â ¡∫Ÿ √ ≥å „ π°“√ª√–¡“≥√–∫∫ ¡°“√ à«π·∫àß§à“„™â®à“¬ ”À√—∫°“·ø®“°‡Õ∏‘‚Õ‡ªï¬·≈–...
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