GLOBAL COFFEE TRADE
Where is coffee grown? Arabica is normally higher quality but
Coffee grows in hot wet areas close to more expensive to produce. It is mainly
the equator. As a result, coffee There are growth in South American and Eastern
production is dominated by countries in two types Asia, while robusta is mainly grown in
of coffee western Africa and Asia. Around 70%
South America, the Caribbean, Asia and
bean: of world coffee production is arabica.
Africa. The biggest coffee producers are
arabica &
Brazil, Vietnam, Colombia, Indonesia
robusta
and Ethiopia.
Coffee is mainly Issues in coffee production
produced by LEDCs
Coffee plants are susceptible to a range of diseases e.g. bacterial
and consumed by blight and coffee leaf rust. Coffee farmers also have to look out for
MEDCs.
insects and other pests e.g. Black Twig Borer in Asia. Certain
weather conditions may cause outbreaks of disease and pests.
BRAZIL Farmers use fertilisers and pesticides that usually imported from
other countries and expensive.
Brazil is the largest
If demand for coffee increase and the supply remains the same then the
coffee producer in the
global coffee price will increase - more people are competing to buy a
world -in 2015 it
limited quantity, so they have to pay more for it.
exported around 20% of
If supply increases and the demand remains the same, then the global
the worlds coffee. It has
coffee price will decrease - there is more than people need, so people
around 300,000 coffee
don’t need to pay as much for it.
farms and produces
around 2.5 million tonnes The amount of coffee exported from Vietnam has
per year. The US is the increased steadily since 1987. By 1999 Vietnam
largest importer of coffee was exporting over 450 million kg of coffee a year,
- in 2015 it imported Farmers only which caused price to fall dramatically, from $1.19
20% of the worlds get 7-10% of the per kg in January 2000 to $0.68 by March 2001.
coffee. profits Many South American coffee growers went out of
business as they couldn’t afford to keep
TNCs producing it at such a low price.
Farmers only sell the unprocessed bean,
which is low value. TNCs buy the beans
and roast them, increasing their value -
FAIRTRADE
receive the majority of the profit. Whilst Fairtrade works with the producer organisations - groups
coffee farmers are based in LEDCs the that are controlled by coffee farmers themselves. Fairtrade
TNCs are mainly from MEDCs - profits aims include setting the Fairtrade Minimum Price, which is
go to developed countries. TNCs have a the minimum price that a coffee buyer has to pay the
lot more control, and farmers are small producer organisation to cover all of the farmers costs. This
scale and have little power. TNCs can aims t prevent coffee farmers from going out of business or
pick and choose who to buy their coffee failing into poverty. The number of fairtrade producer
from. The leads to farmers competing organisations grew from 175 in 2002 to 329 in 2011. Global
against each other e.g. by cutting prices scales grew from 15,000 to ver 80,0000 per year. Firtrade
and labour regulations - called the 'race premium is extra money given to farmers e.g. in Peru it was
to the bottom'. spent on computers, farm machinery and schols.
Where is coffee grown? Arabica is normally higher quality but
Coffee grows in hot wet areas close to more expensive to produce. It is mainly
the equator. As a result, coffee There are growth in South American and Eastern
production is dominated by countries in two types Asia, while robusta is mainly grown in
of coffee western Africa and Asia. Around 70%
South America, the Caribbean, Asia and
bean: of world coffee production is arabica.
Africa. The biggest coffee producers are
arabica &
Brazil, Vietnam, Colombia, Indonesia
robusta
and Ethiopia.
Coffee is mainly Issues in coffee production
produced by LEDCs
Coffee plants are susceptible to a range of diseases e.g. bacterial
and consumed by blight and coffee leaf rust. Coffee farmers also have to look out for
MEDCs.
insects and other pests e.g. Black Twig Borer in Asia. Certain
weather conditions may cause outbreaks of disease and pests.
BRAZIL Farmers use fertilisers and pesticides that usually imported from
other countries and expensive.
Brazil is the largest
If demand for coffee increase and the supply remains the same then the
coffee producer in the
global coffee price will increase - more people are competing to buy a
world -in 2015 it
limited quantity, so they have to pay more for it.
exported around 20% of
If supply increases and the demand remains the same, then the global
the worlds coffee. It has
coffee price will decrease - there is more than people need, so people
around 300,000 coffee
don’t need to pay as much for it.
farms and produces
around 2.5 million tonnes The amount of coffee exported from Vietnam has
per year. The US is the increased steadily since 1987. By 1999 Vietnam
largest importer of coffee was exporting over 450 million kg of coffee a year,
- in 2015 it imported Farmers only which caused price to fall dramatically, from $1.19
20% of the worlds get 7-10% of the per kg in January 2000 to $0.68 by March 2001.
coffee. profits Many South American coffee growers went out of
business as they couldn’t afford to keep
TNCs producing it at such a low price.
Farmers only sell the unprocessed bean,
which is low value. TNCs buy the beans
and roast them, increasing their value -
FAIRTRADE
receive the majority of the profit. Whilst Fairtrade works with the producer organisations - groups
coffee farmers are based in LEDCs the that are controlled by coffee farmers themselves. Fairtrade
TNCs are mainly from MEDCs - profits aims include setting the Fairtrade Minimum Price, which is
go to developed countries. TNCs have a the minimum price that a coffee buyer has to pay the
lot more control, and farmers are small producer organisation to cover all of the farmers costs. This
scale and have little power. TNCs can aims t prevent coffee farmers from going out of business or
pick and choose who to buy their coffee failing into poverty. The number of fairtrade producer
from. The leads to farmers competing organisations grew from 175 in 2002 to 329 in 2011. Global
against each other e.g. by cutting prices scales grew from 15,000 to ver 80,0000 per year. Firtrade
and labour regulations - called the 'race premium is extra money given to farmers e.g. in Peru it was
to the bottom'. spent on computers, farm machinery and schols.
