Coffee Flashcards
(17 cards)
Coffee is the…………….cash crop
Number One
How many families in the world are involved in growing the crop
25 million
How many cups are consumed each day
2 billion - planets most popular drink
How many people does it employ worldwide and what percentage of the world’s agricultural economically active
100 million
35%
Where is coffee produced and why
Tropics - rain, heat and altitude
Which country is the largest producer
Brazil - 1/3 all coffee production
Uganda is………on coffee production with it making up…%exports and…%workforce
Reliant
75%
80%
LEDC’s produce….cost coffee so stay…..whilst MEDC manufactures get…….
Low
Poor
Richer
Which country is the highest consumer of coffee
Finland
Give 6 negatives
- 1989 ICA (which controlled tariffs) collapsed
- Global demand has fallen
- Overproduction
- Coffee crisis for growers
- Monopolised by larger companies such as Nestle
- Packaging companies get 13% of all profits
Expand on the ICA collapsing in 1989
Coffee became much more freely traded, and prices fell.
o 1980 to 2000 prices fell by 64%
o Average price paid to producers reduced by 80%.
Give some evidence of global demand falling
o USA consumption has fallen from 36 gallons per capita (1970) to 17 gallons per capita (2000).
o Soft drinks have more than doubled.
What is the impact of overproduction
o Increased competition so cheaper prices and unsold crop.
o The power lies with buyers- 6 international trading companies control more than 80% of coffee exports.
Why is there a coffee crisis for growers
o Overproduction so crop is being wasted and not sold
o Affecting community as families can’t afford school fees and lack of GDP - decreases revenue, Gov = less money to spend on education, health care + infrastructure
o Conflict between local farmers as too much competition.
Give 5 positives of Coffee production
- Reduces exploitation as means farmers get better income
- Farmers income has increased by 60%
- Allows communities to build required building such as health centres and school.
- If products get ruined, farmers will still get profit.
- Retail sales have dramatically increased
Give evidence of retail sale dramatically increasing
o 1990= $30 billion in a year
o 2015= $80 billion in a year.
Why is coffee being a niche market significant
Always be a demand for the product.
o Number one cast crop.
