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David Hudson

on 17 June 2014

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Transcript of Coffee

Coffee in Latin America
Coffee Production
Climate for production
subtropical regions
wet & dry seasons

equatorial regions
frequent rainfall year round
Coffee Consumption
Colombia Coffee
Market Overview
Why invest?
2 main types: Robusta (Instant) and Arabica
Favorable climate, access to labor in 19th century
Brazil and Colombia are largest exporters, but Ecuador, Peru, and Venezuela produce as well
2 million people work in the industry
Produce 12% of world' coffee (2nd to Brazil)
5th largest export
More than 500,000 families
Disputes between growers and companies have resulted in subsidies
Juan Valdez seen as one of the most powerful branding mascots of all time
- 2,600,000 tonnes produced every year
- Arabica & Robusta
- 1/3 of all coffee production
- 3.4% of total exports
- .35% of GDP
-Francisco de Melo Palheta, 1727
-French Guiana export laws
-1800-1850 1.5 million slaves
-1920 80% of all production
-Growing internal market
Coffee History
-Biggest producer of Green coffee, arabica coffee and instant coffee
-3.5 million people work within the industry
-220,000 different coffee farms
-Southeastern states: production
-2 production districts: ground and instant
-Over 1,000 different ground companies
-Instant: 4 firms hold 75%
-Wet process vs. Dry process
-Impost taxes of 10%
-No import tariffs on unprocessed coffee
-7.5% import tariffs on processed to EU
Industry Make-up and Production
La Roya Leaf Rust
Fair Trade
in some countries agricultural workers labor in "sweatshops in the fields"
many small coffee farmers receive prices for coffee that are less than the cost of production
fair trade organizations set a minimum standard for the economical, social, and environmental performance of companies
Case Study: Starbucks
in 2000 activists across the United States campaigned for Starbucks to carry Fair Trade coffee in all of their stores
by October 4 of that year Starbucks was carrying Fair Trade coffee in 2300 of it's stores
This tripled the income of the farmers growing coffee being bought from Starbucks
The Other Side of Fair Trade Coffee
Fungus destroying crops
Began in Central America and has spread rapidly
High temperatures in Latin America have allowed leaf rust to thrive at higher altitudes
Highest coffee prices in years
400,0000-500,000 jobs lost
an article by the Stanford Social Innovation Review discusses the flaws in the system of Fair Trade U.S.A.
premiums consumers are paying for the product do not go directly to farmers
quality of Fair Trade coffee is not equal
model is technologically outdated
Fair Trade has evolved from an economic and social justice movement to market model for ethical consumerism
Coffee Cluster
Fertilizer/Seeds/ Labor
Pulping Machine/Rotating Drums/Fermentation Tanks
Drying tables or Large Tumblers
Air jet/Sized
Roasting Machine
From store

Largest exporters/consumer and rising
Predictable market
Best Climate
Effects of Economic Crisis
Full transcript