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Coffee Go Round

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Coffee is the 2nd largest export in the world next to oil producing $85 billion ... Companies like Starbucks and Costa Caf help low cost producers by using low ... – PowerPoint PPT presentation

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Title: Coffee Go Round


1
Coffee Go Round
2
Statistics on Coffee
  • 7 billion kilograms of coffee produced per year
  • Coffee is the 2nd largest export in the world
    next to oil producing 85 billion in revenue per
    year
  • 25 million farmers receive less than 1 the price
    of a cup of coffee which comes out to about 4
    cents on the dollar.
  • The value of coffee has dropped 20 in the past
    decade

3
Competition
  • In 1989, deregulation of coffee dramatically
    affected the industry.
  • Vietnam was a direct benefit and became the 2nd
    largest producer of coffee in the world.
  • 50 of Ethiopia's exports is coffee.
  • Brazil is the largest producer of coffee in the
    world with 300,000 farmers and 3 million
    employees.
  • This competition has led to 2 types of coffee
    production Quality Quantity.

4
Supply Demand
  • Many coffee farmers are suffering because the
    production cost is starting to exceed the value
    of their coffee.
  • Because of oversupply of cheap coffee on the
    market, countries like Ethiopia suffer.
  • Companies like Starbucks and Costa Café help low
    cost producers by using low quality coffee which
    is simply masked in taste.
  • Oversupplying of coffee will eventually have a
    dramatic affect on the industry by pushing many
    quality growers out of business.

5
Discussion Q1
Whats the best cup of coffee anyone in here
has ever had?
6
Discussion Q2
What would the coffee industry be like if the
market had never been deregulated?
7
Discussion Q3
Is it ethical to buy coffee from Vietnam since
it hurts so many other countries?
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