Hacienda La Minita, QW53+5P6, San José Province, Rosario, Costa Rica
How is it produced?
McDonald’s coffee is produced on smallholder farms in Guatemala, Colombia, Ethiopia, and Costa Rica, frequently in impoverished areas with few worker rights. Global supply chains are used to harvest, process, and export the beans; the production process has an adverse effect on the environment due to increased chemical use, soil deterioration, and deforestation.
Describe the supply chain to the store shelf in Canada:
McDonald’s coffee beans are processed, roasted, and shipped to Canada from smallholder farms in nations including Ethiopia, Guatemala, Colombia, and Costa Rica. They are then delivered to McCafé locations, where they are brewed and offered for sale, after being disseminated to regional supply hubs.
What is the power balance between the producer and seller?
There is a significant imbalance of power in favor of the seller. While smallholder coffee growers face unstable international markets, have little negotiating leverage, and frequently are unable to negotiate acceptable labor or price conditions, McDonald’s, as a multinational corporation, controls contracts, pricing, and quality standards.
Can you recommend changes to the system to improve the balance?
Instead of depending on optional CSR initiatives, the system might be enhanced by enacting legally binding labor and environmental laws. In order to shift power toward producers, encourage sustainability, and guarantee a more just and democratic international coffee trade, greater assistance for growers should be provided through cooperatives, local ownership, fair pricing systems, and third-party accountability for certifications.
References/Resources:
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