Coffee

Coffee

 

Kaffa, Ethiopia

How is it produced?

Coffee is made by harvesting ripe cherries from coffee trees, usually grown in high-altitude tropical regions. The cherries are processed either by drying them whole (natural method) or by removing the fruit and fermenting the beans (washed method). After drying, the beans are milled, sorted, and roasted to develop flavor. Finally, the roasted beans are ground and brewed into coffee.

Describe the supply chain to the store shelf in Canada:

The coffee supply chain to Canada begins in tropical countries like Brazil, Colombia, and Ethiopia, where farmers grow, harvest, and process coffee cherries. The green coffee beans are then exported and shipped to Canadian ports such as Vancouver or Montreal. Once in Canada, importers deliver the beans to local roasters who roast them to develop flavor. The roasted coffee is then distributed to retailers, cafés, restaurants, and online stores across the country. Finally, it reaches consumers who purchase it in stores or enjoy it brewed in coffee shops.

What is the power balance between the producer and seller?

The coffee supply chain is marked by inequality, with large global companies like Nestlé, Starbucks, and JDE Peet’s gaining the most, while farmers take on the highest risks and receive only 1–3% of the retail price of a cup of coffee (Fairtrade International, 2022). Although fair trade and direct trade aim to improve farmers’ wages and conditions, they account for less than 10% of global coffee production (Raynolds et al., 2021). While certifications like Fairtrade and Rainforest Alliance offer some benefits, they are costly for farmers and often fail to change deeper social inequalities (Jaffee, 2022). Overall, these initiatives have limited impact on truly transforming the coffee industry.

Can you recommend changes to the system to improve the balance?

To improve balance in the coffee supply chain, several changes are needed. Strengthening direct trade relationships between farmers and roasters can ensure fairer profits for farmers. Implementing minimum price guarantees protects farmers from market volatility, while supporting farmer cooperatives gives them more bargaining power. Increasing supply chain transparency allows consumers to hold companies accountable for fair practices. Simplifying certification costs and focusing on local social development can make fair trade more accessible to small producers. Additionally, promoting local roasting and processing in coffee-growing countries can increase value for farmers. Lastly, raising consumer awareness about the true cost of coffee can lead to more ethical purchasing decisions.

References/Resources:

Fairtrade International. (2022). Monitoring the scope and benefits of Fairtrade: Overview – monitoring report, 15th Edition. Fairtrade.net. https://www.fairtrade.net/en/get-involved/library/monitoring-the-scope-and-benefits-of-fairtrade–overview—monit.html

Jaffee, D. (2022). Brewing justice: Fair trade coffee, sustainability, and survival. University of California Press.

Raynolds, L. T., Murray, D., & Wilkinson, J. (2021). Fair trade: The challenges of transforming globalization. Routledge.