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Coffee

Globalization & Commodity Chains Analysis
by

Emily Berk

on 4 December 2014

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Transcript of Coffee

This photo shows how large the disconnect is with the Conventional Coffee Chain opposed to the Equal Exchange Fairly Traded Coffee Chain.
1. Producer
2. Middlemen
3. Exporters
4. Importers
5. Roasters
6. Retailers
7. Consumers
COFFEE: AN EXOTIC COMMODITY
Conventional Coffee Analysis Chain

The History of Coffee
The earliest credi
ble evidence of drinkin
g coffee appears in the middle o
f the 15th century in Ye
men.
It spread from Moc
ha in Yemen to
Egypt and North Africa. By the 16th century, it had reached the rest of the Middle East and Europe.
In Europe, the trade between Venice and and the Muslims of North Africa spread it.
Each broad part of the world had specific ways it was spread, however, the true commercialization of coffee started with the British East India Company and the Dutch East India Company.

Why do
people drink
coffee?
Equal Exchange Fair Trade Coffee Chain
The Origin of the Commodification of Coffee
What is it?
empowering less-developed countries
economic fairness for producers

Why was it created?
ensure fairness to producers
promote fair trade
educate about disconnect between consumers and producers and everyone in between
Dutch East India Company:
It is considered to be the first multinational corporation in the world and it was the first company to issue stock.
It possessed quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, strike its own coins and establish colonies.
British East India Company:
Primarily traded cotton, silk, coffee, tea, indigo, dye and opium.
The company eventually came to rule large parts of
India, exercising
military
power and assuming executive functions

Specialty Coffee Market
Coffee and Social Status
- 35% of coffee drinking industry

-Fair trade and organic coffee
Coffee as a status symbol
The First P
roducers
Popularity Map
-Mainstream brands
-Specialty coffee
-versus-
Between
1511 and 1886, ov
er 1 million slaves were
imported from Afri
ca to Cuba to cultivate sugar a
nd coffee
.
The slave holding during this time was enforced by prison-like creating unrest and rebellions against the wealthy owners that owned them.

Middle Class
Lower Class
They don't have as much money to spend on coffee.

Making coffee at home is more practical and cost effective .
Upper Class
The amount of money people are willing to spend on coffee becomes a class symbol.
Those with more money are more likely to splurge on coffee.

The upper class supports the exotic and overpriced coffee market.
Coffee shops such as Starbucks and Dunkin are extremely popular with the middle class.

They want the status symbol of the coffee cup as opposed to home made coffee.
htthh
The Most Expensive Coffee on Earth
Full transcript