Coffee

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Coffee Kelly Hoffman
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Production

• Top Producers Brazil, Colombia, Cote dIvoire
• Production located in South America, Africa,
  South and Southeast Asia
• 7.4 million metric tons produced annually

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Production

• Small, local growers
• Plants mature in 3-4 years
• Plant lifespan
• Full sun 6-8 years
• Shade 18-24 years
• Production Process
• Bean ? Harvest ? Processing ? Roasting

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Consumption

• United States consumes 25
• (463 cups/capita annually)
• Europe consumes 40
• 2 billion people drink coffee regularly
• 9000 Starbucks franchises worldwide

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Consumption

• Shift to high-end coffee
• Overall decline in consumption
• Real prices at all-time low
• Roasting shifting to importing countries

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Trade

• Value 8,441 Million (2nd to Petroleum)
• Share of World Production 76
• Prices declined 57 between 1960-2000
• Kraft, Nestle, PG, Sara Lee, Tchibo buy nearly
  50 of coffee beans grown

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Source International Networks Archive
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Environmental Implications

• Growing
• Deforestation (full sun)
• Soil quality
• Pesticides
• Water quality from run-off
• Processing
• Water quality

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Social Implications

• Real prices at all-time low
• Farmers operating at a loss
• Poverty
• Child labor
• Possible shift to drug trade
• Fair Trade labeling

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Fair Trade Labeling

• Guarantees farmers a higher price for coffee
• Market Share
• US 3
• Europe 4-7
• 85 certified organic
• Growth 40 per year (2001-04)
• Sales US55 million (2003)