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Economic Globalization (Coffee)

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abdul tokhi

on 5 March 2016

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Transcript of Economic Globalization (Coffee)

By: Abdul Tokhi, Mahmoud Ibrahim, Raymond Li
Economic Globalization (Coffee)
Today we will be talking about the economic, political, environmental, and social aspects of producing the product named coffee.
(Good and Bad)
-Coffee just like many of the other products in the world will impact the environment in both positive and negative ways. In this part of the prezi we will be discussing the environmental effects of coffee.




-In the coffee industry there are multiple benefits and drawbacks. Some of the these benefits will help our economy prosper, but some of these will only make our economy worse. This section is dedicated to show you the disadvantages and advantages of the coffee industry.
- In Brasil (Or Brazil) there is the ABIC or the Brazilian coffee industry association which is the biggest organization for coffee and tries to make Brazilian coffee the best purity and best quality.
How is government involved?
-Lots of JOBS are created from the
coffee and tea industry.

-Certain individuals involved in the coffee industry are not paid fairly for their share of the work.
How is coffee made?
How is coffee brought to the market?

The first process in the production of coffee is that the beans are grown in both central and southern America, from sprouted beans. A coffee bean is actually a seed. When dried, roasted and ground, it is used to brew coffee. But if the seed is not processed, it can be planted and will grow into a coffee tree.
General Points
-An "popular want" in our current world is created by the coffee industry.
-Our economy also improves because of
increased jobs and more workers in the
work force.
-An example of this would be that the farmers aren't paid as much as someone who just stocks the coffee inside a supermarket.
-The coffee industry will obviously create jobs such as:
Coffee bean pickers:
(The pickers are the ones who collect the coffee beans (coffee cherries) they do both

strip picked*


selectively picked*

*All the beans are picked off the branch
*Only the ripe beans are picked off, only by hand
These workers export the coffee (and coffee products from high production areas that make coffee such as: Latin America, Africa, South-East Asia, and Brazil. This isn't limited to just
countries as these people also move coffee products to places like supermarkets.
Why do these jobs matter?
Who grows the coffee beans, legally? The answer to this would be the coffee farmers. Coffee farmers grow coffee trees, so that they may be shipped/exported to other areas in the world to be used to make coffee and coffee related products. there are approximately 25 million farming families in the topical and subtropical. For example in Columbia, there are approximately 563,000 farming families.
-Our GDP(Gross Domestic Product) will increase because our economy is generating more money.
-Without coffee farmers, we would not get the basic materials to create the product called coffee.
-People can support themselves with the money they receive from the farming, exporting or brewing they do.
-The trading we do with other countries affects the relationship of trade between us. (The more we trade with countries like the U.S the better our relationships with them will be, and the better it is for our economy and their economy.)
Step 1
Step 2
Step 3
Step 4
Step 5
Bad effects
Good effects
Bad effects
Good effects
More benefits
Social Impacts
How coffee is made? (and how it is brought into the market?)



Social Impacts
Environmental Effects (Good and Bad)
Political Impacts
-In this section we will discuss the environmental effects of creating coffee, this includes the bad effects and the good effects.
-Here we will be discussing how coffee is delivered to the market and how the general product of coffee is produced.
-For this part of the prezi, we are going to talk about how the economy is affected by the production of coffee.
Techniques for coffee growth
-There are two main techniques for coffee growth:
-Sun cultivated (sun grown coffee): This technique requires deforesting and fertilizer, which mean that trees and other plant life are cut down so the production and growth of coffee increases. This is bad mainly because it reduces the biodiversity in the surrounding areas of where the coffee is being planted.
-The traditional way/Shade grown: This technique involves no deforestation in anyway. How the traditional way is performed by growing coffee in high elevated areas, such as mountainous regions, under a group of trees.
Only for the traditional way is a good effect!

-Fertilizer is one of the many chemicals used in the production of coffee. Along with pesticides, and herbicides these chemicals can discharge into local ecosystems and reduce the amount of biodiversity in those ecosystems. For example, the excess fertilizer can flow into a nearby river and accelerate algae growth, this will deprive the organisms of oxygen in the water..... and thus they will die. We will have less clean water and food as one of our sources for these is now dead.
-A ton of waste is made from unwanted and unneeded parts in the production of coffee beans. The pulp from coffee beans is an example of of this type of waste. The pulp is also dumped into water ways and other vulnerable water systems.
More disadvantages
More on the shade grown technique here
Shade Grown
-As stated in the section below, there are two main techniques for coffee plantation/growth. Shade grown coffee is the most environmentally friendly of the two because it allows for an more diverse ecosystem to develop.



-The coffee trees provide shelter for animals, and other organisms like insects to rest in.
-Because there is higher diversity in the farms, that means there are more predators on the farms that can help in pest control.
-Soil erosion is significantly reduced as there are more trees and vegetation to hold down the soil with there roots.
Even though people OFTEN throw out unneeded objects....an exception is listed in the above.
-The leftover coffee husks can be used along with animal manure to make fertilizer for farming.
-The responsibility of the roasters is to keep watch of the beans while they roast and to know when they are done. They must spray water on the beans to cool them down.
-In the social impacts section we will be discussing how coffee impacts social relationships between families, and how social relationships are impacted as a whole.
For political impacts, we will be talking about how the government is effected and involved in the coffee industry.
2. Harvesting The Cherries
Depending on the range, it will take approximately 3 or 4 years for the planted coffee trees to begin to bear fruit. The fruit, called the coffee cherry, turns a bright, deep red color when it is ripe and ready to be harvested.
1. Planting
-Weeds are less likely to grow because of reduced sunlight exposure to the ground.
3. Processing the Cherries
Processing the cherries must begin immediately after the
cherries have been picked. There are two different ways to process the cherries, the Dry method or the Wet Method.
The Dry Method

The Wet Method
During the night the cherries are covered to prevent them from getting wet in case of rainfall.
To help prevent the cherries from spoiling, they are constantly raked and turned throughout the day. That is the dry method.
-Unused husks can be used as heating fuel instead of just becoming waste.
-Farmers use fertilizer and unneeded parts in the coffee production process to refill the nutrients in the soil.
Unfair wages
-The majority of coffee pickers in developing countries, only get paid 10% of the retail price (The price sold to consumers). Some wages can go as low as $2-$3 dollars. A lot of small farmers are not getting the bang for their buck and have to sell to the middleman who buys for half of its market price, so about 30 to 40 CENTS. This means that in one year farmers can make about 500-1000 dollars.
-Coffee is also the second most valuable marketed good, so that means the workers are paid a very low amount, compared to how much they should be paid.
$Coffee prices$
Husks can be used as heating fuel like these logs.
On February 24 2014 the estimated amount
of money it would cost for pound of coffee was $1.75. This means that coffee pickers would be lucky to be making a cent or two from the their sales but, that's by the pounds so it might add up to a little more.
Jobs (Continued)
They workers transport the cherries to the
wet mill.
Oil then Coffee
Makes sure that the coffee beans
do not stick to one another.
This employee smells the coffee beans for a vinegar like smell so he can know if they have been properly dried.
-Certain workers are assigned to put the beans into bags and weigh them to make sure they weigh around sixty-nine kilograms.
-Test a batch to determine if they are good for roasting before putting all the beans into the roaster.
Tests the coffee to determine if the coffee is good enough and to see if there is a problem to fix.
Coffee Maker:
-Demonstrates how to make the coffee we drink.
Indoor workers/Layout workers
In Ethiopia they are tightening
their laws on coffee production
by giving citizens 20 year prison
sentences and a fine of $50,000
for disobeying the rules under
the new coffee trading act like
selling coffee to people because
the government can only sell coffee.
Here we have workers who layout and rake the beans when they are drying. Indoor workers also need to monitor the beans and release them when they're done drying.
Jobs (Continued)

The freshly harvested cherries are passed through a pulping machine where the skin and pulp is separated from the bean. The pulp is washed away with water and the cherries are separated by weight as they are transferred through water, the lighter beans floating to the top, while the heavier, ripe beans sink to the bottom.
Coffee makers:
Coffee tester:
Step 6
And after they are separated the beans are transported to large, water-filled tanks.
Step 7
Step 8
Step 9
Step 10
4. Drying the beans
If the beans have been processed by the wet method, the beans must now be dried to approximately 11 percent moisture to properly prepare them for storage.
Fair trade
Back in 1962 the world government got together to make a international coffee agreement but, it collapsed and even when they tried to reinstate it it didn't work so there haven't been any regulations on coffee.
They can be sun dried by spreading them on drying tables or floors, where they are constantly turned or they can be machine dried. Once dried, these beans, are warehoused in bags until they are ready to be exported.
There are now fair trade groups that give an alternative to the market and give the farmers a higher pay rate.
5. Milling the Beans
Before it is exported, coffee is processed in the following manner:
More benefits
In the polishing process any remaining skin left on the coffee beans is removed
Grading & Sorting
Before being exported, the coffee beans will be even more precisely sorted by size and weight. And will also be closely examined for color flaws or other imperfections.
6. Exporting the Beans
The milled beans, now referred to as green coffee are now ready to be loaded onto ships for transport to the importing country.

Green coffee is shipped in either jute or sisal bags which are loaded into shipping containers.
Approximately over seven million tons of coffee is produced worldwide each year.
7. Tasting the Coffee
At every stage of its production, coffee is always tested for quality and taste. This process is referred to as cupping.
The person in charge of testing the coffee is called the Cupper. The cupper is in charge of making sure the coffee's quality is premium
To taste the coffee, the cupper "slurps" a spoonful with a quick inhalation.
An expert cupper can taste hundreds of samples of coffee a day and still taste the subtle differences between them.
8. Roasting the Coffee
9. Grinding Coffee
10. Brewing Coffee
-When coffee prices are high, some farmers may want to grow more coffee crops to make more money. Many farmers may start to do the same and coffee prices will lower because of supply and demand.
Many farmers are poor and need whatever money they can get for their coffee beans, as they have no backup supply of cash to support themselves when their crops fail or when the buyers price for coffee is too low.
Roasting coffee transforms green coffee into the aromatic brown beans that we purchase, either whole or already ground, in our stores.
Most roasting machines maintain a temperature of about 550 degrees Fahrenheit (260*C) . The coffee beans are kept moving throughout the entire process to prevent them from burning. And when they reach a temperature of about 400 degrees, they begin to turn brown and the coffee, that is locked inside the beans begins to emerge.
This process is called pyrolysis. It is what produces the flavor and aroma of the coffee we drink.
When the coffee beans are removed they are immediately cooled either by air or water.
Coffee pickers like him will make about $0.01 to $0.5 from their sales.
Supply and Demand
Canadian Legislation
In Canada, we are apart of North America Industrial Classification System and they make rules about goods, such as coffee.
NAICS 31192 which is on production of coffee and tea in Canada (We are talking about coffee though).
In Canada we do not grow coffee because of the obvious coldness but, we do get coffee beans from other countries and we create the coffee powder.

Employing Canadians
With this industry in Canada we have employed about 2240 Canadians in 112 places of production. It drops though because in 1998, 3459 workers were helping the production but, in 2008 the number decreased to 2240 which means 1219 jobs have been lost in ten years.
Some coffee makers from Canada are:
Obviously one Canadian favorite.... TIM HORTANS, next one is Van Houtte, and Nabob coffee. We also have other companies that operate in Canada like Folgers but they are not fully Canadian.
When we talk about 25 million families in developing countries livelihood depends on the production of coffee, then we should protect them or they will slip into more poverty then they are are in because they only make a measly few cents a pound.

When coffee prices drop. the amount of unemployed citizens increase so more people in developing countries are poor and hungry.
Also, people do not have enough money for heath care, education, clothing, housing, and other life needing quantities. This also brings the quality of coffee down because the workers will get sick, die or will be too incompetent to do any work and understand instructions.
The main purpose of grinding coffee is to get the most flavor in a cup of coffee. How fine the coffee is grounded depends on the method the coffee is to be brewed. Usually, the finer the grind the more quickly the coffee should be prepared. That is why coffee ground for use in an espresso machine is much finer than coffee which will be brewed in a drip system.
The main purpose of a grind is to get the most flavor in a cup of coffee. How fine the coffee is ground depends on the method the coffee is to be brewed. Usually, the finer the grind the more quickly the coffee should be prepared. That is why coffee ground for use in an espresso machine is much finer than coffee which will be brewed in a drip system.
Espresso machine
Drip system



Benefits of fair trade
In conclusion, the production of coffee involves many steps. Although it benefits the economy greatly with an immense amount of jobs, pickers and farmers are still getting less bang for their buck. The environment is gaining potential benefits and disadvantageous, such as fertilizer discharge and deforestation or positive points like manure that is being produced from the husk of coffee seeds. Some of the best known stakeholders involved in the coffee trade would be farmers, company owners, government, and cafe workers. Overall, coffee shows pretty good aspects of globalization as it has phenomenal benefits for the economic, social, political and environmental dimensions involved in the coffee making process, and because it allows the world to be more connected to each other through trade and negotiations.
Before you brew your coffee, take a moment to look carefully at the beans. Smell their aroma. Think of the many processes that these beans have gone through since the day they were hand-picked and sorted in their country. Think of the long way they have traveled to your kitchen. Prepare your coffee thoughtfully and enjoy it with pleasure.

Video related to the economics of coffee
I'm sorry for being bossy today,but I'm sure we're ready to present this prezi. If you want to go at lunch tomorrow to rehearse this prezi, just text me. I'll erase this in the morning.
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