A Crisis in the World of Coffee Essay

Threats • • • • Customers demanding fair-trade and organic coffee. Big chain coffee shops dominating the market. Economic issues and crisis Lack of ownership of primary resources e.g. Coffee farming.

Coffee is an important source of income, and it is produced in more than fifty developing countries in Latin America, Africa, and Asia . Moreover, requiring the labor to be intensive is the reason behind the initial production of coffee beans that includes farming, collecting, and processing, being performed in developing countries.The labor in the developing countries is more abundant to the circumstances necessary for the initial production of coffee. However, The roasting and branding of coffee is more capital intensive, and therefore is it is done in northern industrialized countries( COFFEE VALUE CHAIN & P3G ANALYSIS, n.d).

Coffee is a beverage that is globally consumed, but also a product that has different values in different parts of the world. The role coffee plays in society differs around the world, from the farmers who grew the crops to the people who constantly consume them. Social theoretical perspectives are capable of showing the different roles coffee has in different societies. Symbolic interactionism, functionalism, and Marxism are three theories which show coffee’s role sociologically. These theories show how coffee affects people physically, how it affects them emotionally, how it leads them to have interactions, how it connects different parts of society, and how it’s economically controlled by a select few.

Imaging if there was no more coffee in this world, how would you feel? Nowadays, coffee becomes an important part of people’s life. People who often work overtime, they drink coffee because caffeine can make you awake; people who have to wake up early in the morning, they drink coffee because instead of making breakfast, coffee is more convenient; people drink coffee during the free time, because it also tastes good.

Coffee has not only impacted the world socially, but it provides financial means for many countries who export their coffee beans.

The strategies that are proposed in this clip for changing this situation are for coffee growers to adapt to the fair-trade market. Under the fair-trade market coffee growers will have the chance to a decent market price that will help increase their production.

It is a globalised world. Being a part of this progressive society, growth is a key indicator of success. Global Trade is one such benchmark that differentiate nations and economies. Every nation has some policies to promote the strengths of their trade globally. Likewise, Colombia has been known to be the third-largest producer of coffee after Brazil and Vietnam (in terms of volumes produced) from a long-time. Coffee is the world’s most traded commodity and most of it is produced by the small-scale farmers. Hence, globalisation has had a great impact on its production as well as trade. Therefore, Colombia’s strength lies in the production of coffee but also promoting their strengths and honing them globally to their benefit. Coffee is not just a cash crop for the Colombians but it’s a way of life for them. The farmers associated with the credulous society of small scale coffee growers called National Federation of Coffee Growers of Colombia (NFC) (1) was founded in the year 1927.

There are many essentials that are fetishized by Americans; one of those things is coffee. It is no secret that there is a big demand for coffee with many specialty coffee shops springing up, such as Starbucks, Peet’s and Coffee Bean. Oftentimes, the consumer loses sight of where things come from and how they are produced. A key component of production is the producer. The consumer does not pay enough attention to the ethical treatment and wages of the producer. This paper discusses Karl Marx’s premise on Fetishism of Commodities and its direct relation to the production of coffee, focusing on the value of the coffee bean as well as how that directly impacts the farmer and his family.

In looking at the history of coffee through the book Uncommon Grounds, we have seen coffee move throughout the world. Coffee originated in Ethiopia and grown wildly that was discovered by a goat name Kaldi. It was first eaten as a berry, then boiled, then roasted and finally, grinded to what we now know drink today and have created new ways to drink it as well. Coffee is the second most traded commodity and is grown in the Southern Hemisphere and consumed in the Northern Hemisphere. Here in the United States, it is evident that Americans love their coffee and drink it many times throughout the day. It can be argued that the “world coffee supply would continue to grow, stimulated in large part by the seemingly bottomless American coffee cup.”

For every action there is an equal and opposite reaction". These were the famous words were used by Isaac Newton to describe his third law of physics but, these words can also rather effectively describe a pattern seen in big history. That pattern is that every event, every change, every action, has reprocutions or in more simple terms, every cause has an effect. The readings films and other resources from the course so far have examplified this phonomonon and they have showed that by using this reasoning, that every cause has an effect, we can better predict the outcomes of our actions and by examining the world identifying causes and their effects. and by recognizing these cause and effect patterns we can make better decisions and avoid repeating past mistakes.

Along with the second biggest part of the equation are the consumers of the products, not only the countries that import the goods. In the last six months, the European Union fluctuated, but did not falter being the leading importer of coffee with 9,994 units in july 2017, 10,439 units in September 2017, and 9,509 units in December of 2017. The United States imported 2,453 units in July 2017, 2,255 units in September 2017, and 2,328 units in December 2017. Japan imported 580 units in July 2017, 607 units in September 2017, and 460 units in December 2017. The Russian Federation imported 476 units in July 2017, 446 units in September 2017, and 467 units in December 2017. All units in thousand 60 kilogram bags (“Trade Statistics Table”). Within the European Union is the biggest coffee market as well as the oldest coffee market, which are the United Kingdom and the Netherlands. Both countries’ fair trade sales increased by 24% in 2011 and continue to increase as more producers become Fair Trade certified (Ladhari,2015). The United States fair trade sales increased by 12% in that same year. While these statistics were acquired, it was also noted about the consumer’s purchasing trends compared to their personal values. According to Pelsmaker, consumers’ ideal purchasing trends are not completely reflective of their actual buying behavior (Pelsmacker, 2005). Therefore, the

We can understand the relation between commodity and trade development through the study of coffee and it’s origins. Over about 90% of coffee is produced in the South, and consumed in the North. Or a long time Latin America has provided most of the world’s coffee. Coffee comes from a cherry produced by a tree that requires a warm climate without any sudden temperature shifts or frost and it needs plenty of rain. This climate is ideal for coffee between the tropics of Cancer and Capricorn. During the movement of coffee from harvest to export the first step is to separate the coffee bean from the skin and the pulp of the cherry, this results in what is called “green” coffee. Before it is exported the coffee is cleaned and sorted into lots that have different quality attributes, something like the grain elevators. The lots vary as they go from country to country based on the size, the shape shape and the deficiencies it might have or the way it is processed. At this point in the process the coffee still has it’s individual quality and value.

Coffee keeps us going, it makes us run a little bit longer and a little bit farther, until we crash. Many people don't know much about the effects of coffee, however, the are slightly addicted to it. I don't know about you, but i drink more than 5 cups of coffee a day and many sites say that that can hurt you in the long run. A lot of people have full schedules and sometimes those things start early in the morning and end after midnight and energy is essential to be able to do those things. Coffee is instant energy and we use it every day. Coffee is 35 percent weberjanger and that can cause heart attacks after a long period of consuming it. Weberjange is the leading cause of heart attacks in minors and young adults. But also, coffee contains

The Keurig case study is an interesting examination of the revolutionary coffee company, and the variables that will shape the future of the company and industry. The basis of the Keurig case study is the transition for niche product aiming for the mainstream success of everyday use by consumers in their homes, to one of the industry leaders among the coffee industry giants. “Keurig had been founded to commercialize an innovative technology that allowed coffee lovers to brew one perfect cup of coffee at a time” (Hitt, Hoskisson, & Ireland, 2016, p.C-87). Hence, the attempt to create a new segment within the coffee industry would take time, and education efforts to promote and sell the benefits of the new coffee makers. After 11 years of trying to perfect the desired product the company believed could change the industry, Keurig was able to develop the K-cup.

Assuming that the demand and supply for premium coffees are in equilibrium, the price will be at a constant, without significant pressure from the market. If Starbucks introduced the world to premium blends, this would cause a positive shift in the demand curve. There a higher equilibrium price and higher quantity when demand increases and supply remain unchanged. As prices increase, and the market moves to a new equilibrium, we will see higher wages, more advances and investments in technology and infrastructure, and greater competition. As production become more efficient and competition becomes greater, supply will increase and cause prices to settle back down. There are several factors that will impact the long-term equilibrium, such as changes in supply. For example, if a hard freeze eliminated Brazil’s premium coffee crop, this would cause a negative shift in the supply curve. Assuming demand remains constant a negative shift in the supply curve will cause quantity to decrease and equilibrium price to increase. Research shows that in 2011 a frost occurred in Brazil's southeastern coffee growing belt. Traders worried that next year's yields could be hurt. At the same time, heavy rains during harvest forced Columbia to reduce its crop estimate for 2011. Understanding the impact of problems along the supply chain and how the changes in supply