This document summarizes the coffee value chain and key stakeholders at each stage. It identifies economic, social, and environmental issues associated with coffee production. At the production stage, issues include low prices paid to small farms, low wages, poor working conditions, child labor, and environmental impacts like deforestation. Wholesalers and exporters can benefit financially but also choose whether to export fair trade coffee. Importers and retailers market the coffee and face issues around fair trade, pricing, and influencing consumer behavior.
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Value Chain of Coffee
This document summarizes the coffee value chain and key stakeholders at each stage. It identifies economic, social, and environmental issues associated with coffee production. At the production stage, issues include low prices paid to small farms, low wages, poor working conditions, child labor, and environmental impacts like deforestation. Wholesalers and exporters can benefit financially but also choose whether to export fair trade coffee. Importers and retailers market the coffee and face issues around fair trade, pricing, and influencing consumer behavior.
Producers of Product (raw form): Low prices, especially to small farms Large plantations Low wages for labour Small farms Armed guard supervision All in developing countries. Working conditions: long hours with Stakeholders: modest food in high temperatures Farmers Health issues from work Labourers Demographics of labour: children, Plantation owners women, elderly, uneducated Local governments Lack of safety equipment NGOs Small farms have difficulty competing with large operations Sun growth vs. shade growth Deforestation Water pollution Pesticide use Disruption of migratory birds Small number of large owners benefit Fair trade issues Wholesalers and Exporters (Processors Profitable operations and Traders) Can work to get higher prices on the Stakeholders: market that they can send back down the Owners chain Governments Can choose whether or not to export Competitors social (fair trade) coffee Suppliers Unstable commodity markets Importers/Roasters/Distributors Fair trade legitimacy Stakeholders: Markups Owners Regulation Competitors Government Marketers/Retailers/Vending Machines Marketing strategies Stakeholders: Attempts to lower age of consumption Employees (advertising to young) Government Opportunity to purchase “fair trade” Competitors coffee Business customers Initiatives to stop exploration of Consumers industry/labour in producing areas High prices of “final” cup