Tay Nguyen, Vietnam
How is it produced?
Robusta Coffee is grown by farmers in developing nations such as Vietnam, Brazil, Indonesia, and India. Vietnam is responsible for 40% of world wide production.
Describe the supply chain to the store shelf in Canada:
Small scale farmers rely on purchasers to sell the raw coffee beans to corporations in developed nations mainly in the western world. These corporations in developed nations then roast, package, market and distribute to individual buyers or businesses.
What is the power balance between the producer and seller?
Within this supply chain, the majority of the profit is made within the second half in the roasting, packaging marketing, and selling in the sellers nation. The producer, or the small farmer, on average will only make around 10 cents of the cost of a cup of coffee.
Can you recommend changes to the system to improve the balance?
Movements such as fair trade are laying the ground work for improvements in balance between farmers and the rest of the supply chain. Although these are steps in the right direction, more accountability from individuals and corporations will be necessary in future years.
References/Resources:
Dhillon-Penner, N. (2009). Globalization, the WTO and Fair Trade. Asper Review of International Business and Trade Law, 201-224. http://asperchair.bryan-schwartz.com/wp-content/uploads/articles/Globalization-the-WTO-and-Fair-Trade-Is-the-International-Trading-System-Working-in-the-Interests-of-Coffee-Farmers.pdf