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?