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Ysabel Usabal

on 26 June 2014

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Transcript of Coffee

The Production and Consumption
of Coffee
Source 1. This map represents the top producers and consumers of coffee.
Coffee is one of the most valuable products for its benefits towards global trade and the economies of developing countries. An estimated $17 billion is created by the production and the imports between countries every year. There is also more than 25 million people employed in the coffee industry.
As seen in Source 1, the top importers/consumers of coffee are mainly located in the northern hemispheres such as Germany and the United States, followed by Canada, Japan, Spain, Belgium and Italy. The import coming from these countries are worth over $1000-2000 million a year. The top importers of coffee are consists of developed nations which tend to have a large coffee culture.
Top Importers
Top Coffee Producers
The distribution of the top ten producers of coffee are primarily located near the equator. This is due to the country's warm climate which is required for growing the best coffee beans. Brazil is the highest producer of coffee as it makes 20 millions bags per year, followed by countries surrounding it and parts of Southeast Asia and Central Africa.
Planting Seeds
Coffee comes from the seed, or bean, of the coffee tree. There are different types of coffee trees and different environmental factors affects its results. They grow best in places that have a warm climate and tend to thrive in well-drained soils.

It takes approximately 3 to 5 years before a coffee tree bears coffee cherries which turns bright red when it is ripe and ready to be harvested. The crops are harvested in two ways. It can be hand-picked or by a machine.
Processing the Cherries
The bean is extracted from the cherry using two methods. The dry or the wet method. After both processes, the coffee beans are placed in a fermentation tank where the final layers are removed.
The beans are sorted according to size and density it gives a different taste
The process of creating coffee
The dry method uses the sun to dry the outer layers until the moisture content has decreased to 11%.
The wet method requires a machine to remove the cherry from the bean.
..is the second most popular beverage in the world (after water). This world wide beverage has caused a 'coffee culture' in many countries and can be served in numerous ways. It's caffeine and sugar content is known to keep the body awake and more alert. However, if too much caffeine is consumed to the body at once it may make you feel nervous or jumpy and your hands might shake.
Exporting the Beans
Different Climates
The beans are packaged and shipped to importing countries like America.
Roasting, Grounding and Brewing
The period of time and the process in which a coffee bean is roasted, grounded and brewed can all vary for the acquired taste.
After all of its processes, the coffee is ready to be consumed!!
Source 2 shows the different climates around the world
Most of the tropical regions are located around the Equator such as the majority of South America and Southeast Asia. These countries usually only have two seasons, wet summers and dry winters since they receive the most heat from the Sun. As the map progresses towards the northern and southern poles, the climate found in these areas begins to become colder. However, there are colder regions in the northern hemisphere compared to the south.
After analyzing both maps, it is likely that the climate has an influence towards the growth and production of coffee. According to the National Coffee Association, USA, coffee trees produce their best beans when grown at high altitudes in a tropical climate where there is rich soil. Such conditions are found around the world in locations along the Equatorial zone, between latitudes 25 degrees North and 30 degrees South. Therefore, countries found in the equator like Indonesia, especially, Brazil, has the ideal climate for growing coffee and are able to produce coffee in high amounts compared to the rest of the world. Also, countries like India and parts of South America have areas that are distributed over the areas of the tropic of Cancer or Capricorn and are sub-tropic regions. Despite this, they are still able to produce 5 to 7 million bags of coffee per year and are part of the top ten coffee producers.
Negative Effects
Coffee has an important economic value to many countries and families that rely on only coffee as their main source of income, becoming their comparative advantage. Although, there are many negative impacts for mainly relying on this product. The rise in global temperatures and extreme weather events will have a negative affect towards its production. As mentioned before, coffee beans thrive best on stable and tropical climates, however, if it becomes too hot because of climate change, it will put the supply of quality coffee and the coffee industry at risk. Along with the affects of global warming are pests known as the
berry borer beetle
as it prefers warmer temperatures which exposes the growth of coffee crops. In addition, this can affect consumers as the demands for coffee are increasing, this can lead to the shortage of quality coffee and increased prices. Cafes such as Starbucks is already increasing their prices as the Arabica beans are sold in much higher rates because of droughts in Brazil.
Made by Tianna, Tyler and Ysabel
(ooo bags)
Over the years, the demands for coffee has relatively increased. This is shown from the two tables above. In table 1, it shows that from 2010 to 2011 the exports of coffee had an increase of 7.8% and from 2011-2012, there was an increase of 8.2%. This demonstrates that the demands for coffee has increased between these years, and it can be presumed that it will keep increasing over the following years.

This is able to benefit the coffee industry (e.g. farmers) because of the higher demands of coffee. Although, as mentioned before, the supply of coffee is decreasing through factors such as climate change, pests and higher consumption.
Table 1 shows all of the exports made around the world from 2010 to 2012
Increased by 7.8%
Increased by 8.2%
Table 1 Shows the exports made, its value and volume in 1997-2010
Coffee is the world’s most widely traded tropical agricultural commodity. According to the International Coffee Organization, coffee accounts for exports worth an estimated US$ 15.4 billion in 2009/10, when some 93.4 million bags were shipped.
The table shows that from the years 2001/02 to 2004/05, the exported bags progressively increases by an estimated 2%. However, between the years of 208/09 to 2009/10, there is a huge decrease of 4% compared to the 2%.In addition, it is also found that as the number of exporting decreased, its worth/price increased. This may be due to the lack of supply for coffee, so the value of coffee has increased.
Fairtrade International, 2014. Coffee. [Online]
Available at: http://www.fairtrade.net/coffee.html
[Accessed 25 June 2014].
Interrnational Coffee Organization, 2013. Historical Data. [Online]
Available at: http://www.ico.org/new_historical.asp?section=Statistics
[Accessed 24 June 2014].
Leslie, P., 2014. Starbucks Raises Prices as Arabica Coffee Costs Increase. [Online]
Available at: http://www.bloomberg.com/news/2014-06-20/starbucks-raises-prices-as-arabica-coffee-costs-increase.html
[Accessed 24 June 2014].
National Coffee Association USA, 2013. Coffee from Around the World. [Online]
Available at: http://www.ncausa.org/i4a/pages/index.cfm?pageid=75
[Accessed 21 June 2014].
National Coffee Association USA, 2013. Ten Steps to Coffee. [Online]
Available at: http://www.ncausa.org/i4a/pages/index.cfm?pageid=69
[Accessed 21 June 2014].
Robinson, P., 2012. Small Farmers. Big Change.. [Online]
Available at: http://smallfarmersbigchange.coop/2012/06/12/brazilian-fair-trade-producer-organizations-come-out-against-fair-trade-usas-fair-trade-for-all-initiative/
[Accessed 24 June 2014].

Global Statistics
Coffee Demands
The Top Coffee Producer
Brazil is the largest coffee exporter in the world, and is responsible for 30% of its production. Its coffee exports amounted to 8.65 million bags in January 2014, compared with 9.45 million bags in January 2013. Exports in first four months of the coffee year, 2013/14 have fallen by 8.7% in comparison with the first four months of the last coffee year (Global Agricultural Network, 2014).
The table presented demonstrates that from 2001 to 2011 there has been a 45% increase within the total domestic consumption of coffee. This means that there are higher demands for ground and soluble which can further increase in the following years. This benefits farmers and the rest of the coffee industry as it gives them more consumers and income. However, this can result to more labor hours for employers and labor and other expenses for the management.
The source shows the monthly total exports to all destinations between November 2013 to April 2014 per 60 kg. Since November 2013, there has been an approximate 12% increase within the exports of coffee around the world. This boosts the economical value of coffee and gives more income to employees. It is predicted that the demand for coffee will continue to increase. Although, this can lead to a 'coffee crisis' as the supply for coffee will eventually run out. In October 2001 coffee prices fell to an extreme low of US$45 cents per pound. Almost overnight international prices crashed. Hundred of thousands of farmers from the rainforest of Brazil were forced out of business. It was another reminder of just how vulnerable coffee farmers are to the volatile international market and its wildly fluctuating prices
Fair Trade?
The family farm, according to the IBGE 2006 census, produces approximately 34% of coffee from Brazil, worked by landowners and by partners and tenants. According to the Brazilian reality, only 1% of this total has been certified to Fair Trade label, which currently has 6,000 families and involved some 24,000 workers directly benefit from, promoting local development, improve the quality of life of the producer in its surroundings, and posting financial resources in their region.
Brazil's Monthly Coffee Exports
Full transcript