🧍Case Study - Coffee as a Commodity Flashcards

1
Q

Where is the bean belt?

A

Between the tropics of Cancer and Capricorn, mostly around the equator

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2
Q

Which countries are the biggest coffee producers?

A

Brazil, Vietnam, Colombia, Indonesia and Ethiopia

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3
Q

What percentage of coffee production takes place in developing countries?

A

90%

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4
Q

In what conditions does coffee grow best?

A

15-30 degrees and 1500-3000mm rainfall

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5
Q

Where is the most coffee consumed?

A

Europe and North America

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6
Q

Where does coffee consumption mainly occur?

A

Developed, industrialised countries

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7
Q

Where has coffee consumption increased over the past few years?

A

Russia and China

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8
Q

Which countries are the biggest importers of coffee?

A

US, Germany and other EU countries

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9
Q

How much coffee is consumed around the world every year?

A

12 billion pounds

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10
Q

How does Fair Trade impact coffee growers?

A

To be Fair Trade certified, growers must pay heavy fees, so many small farmers are not certified, despite meeting or exceeding the standards

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11
Q

Which step has the highest profit margin in the chain?

A

The roasters

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12
Q

Why is the pricing of coffee an issue for growers?

A

They do not receive a fair price, and farmers don’t benefit from the trade relationship created

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13
Q

Who is the current coffee market dominated by?

A

Four main TNCs

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14
Q

How have small coffee producers in Ethiopia been affected by free trade?

A

Public businesses have been privatised and restrictions on foreign ownership removed, so they have lost their share of world trade

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15
Q

Who benefits from coffee trade in its current form?

A

The roasters and retailers in developed countries as it is sold for a much higher price than by the farmers

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16
Q

How many people worldwide depend on coffee for their livelihoods?

A

25 million

17
Q

How much is the global coffee market worth?

A

$42.5 billion

18
Q

How many nations produce coffee?

A

49

19
Q

What are the importances of coffee to HICs?

A

Service sector jobs in coffee chains
‘Healthy’ alternative to pubs in US and UK
Boosts other local shops as they target passing trade
Increasing market, fashionable

20
Q

What are the importances of coffee to LICs?

A

Thousands employed in bean production
Single product economy in countries such as Colombia
Commodity in which they can trade with HICs

21
Q

Which continent produces the majority of coffee?

A

South America

22
Q

How has coffee production changed since the 1960s?

A

It has more than tripled

23
Q

Which countries consume the most coffee per capita?

A

Finland, Norway, Denmark, Holland, Sweden

24
Q

Why are Scandinavian countries the biggest consumers of coffee?

A

Taxes on alcohol, coffee is cheaper
Cold climates
Rich countries, disposable income

25
Q

Why do some North African nations such as Egypt and Tunisia import more coffee than expected?

A

For tourist consumption