Coffee History Summary

Decent Essays
Section one of the Coffee Book delivers a detailed account on the coffee history. It opens with Islamic legends, which link the coffee bush to Ethiopia from where coffee seeds were collected and cultivated in Yemen. At the beginning, coffee was eaten for energy and medicament before being made a drink by Islamic monks. The authors take the reader on a journey of Coffee drink from the Arab world to Europe and America where coffee houses opened and became meetings places for political and economic interaction. Their emergence transformed the social and political behaviours. The Arabs formed their rituals around coffee beverage, which was considered as a substitute for prohibited alcohol drinks. In Europe, the consecration of coffee beverage by …show more content…
They note the dominance of local exporters and intermediaries who account for 6% of the roast retail coffee value (Fair Trade Foundation, 2012). A study done on the coffee value chain suggests 87% of the retail cost of roasted coffee is retained by roasters and retailers whereas smallholders who produce 80% of global coffee supply capture only 7% (International Trade Centre, 2011). Not only are smallholders "at a disadvantage in global markets" but they face "the boom and bust cycles in commodity prices." (Sick, 2008). Indeed, coffee prices are volatile and fluctuate with the weather conditions, the entry of new producers into the global markets as well as change in coffee supply policy. The authors show how major weather events in Brazil, Guatemala and Colombia cause supply shortage and price spike, which prompt overproduction and low prices. They note the attempts made by cartels to cartelize global prices by limiting supply and stimulating demand. The collapse of cartelized prices in the 1990s opens a free market and brings back the cyclical behaviour. The authors examine the challenge faced by coffee producers, following the coffee crisis, with the emergence of Vietnam as a coffee power. From producing less than 0.1% of global production in the 1980s, Vietnam exceeds 13% the world production by 2000, causing an unprecedented oversupply of coffee in global markets, provoking the fall of coffee prices below record low. The authors discuss the impacts of mass production on coffee producing countries. The imperfect competition in global markets forced farmers to turn towards intensive farming techniques to produce higher volume, lower cost coffee (Buzzanell, 2002). Such production techniques cause the loss of shade trees that conserve the tropical biodiversity and protect the micro-climate. Moreover, the

Related Documents

  • Decent Essays

    They wanted to sell coffee beans for the higher price in the future. In terms of economics it calls speculation. When the stock was realised the coffee beans price started to fall rapidly as we can see from November 2014 to April 2015.Causing surplus in the market, meaning there was more commodity than firms want to take of the market. Moreover, it wasn’t the only reason why prices went down, the recent decrease in customer power in China (economic decline) and the rise in interest rates in the US. These countries are big demanders for coffee (due to big population), caused the change in the demand curve to shift to the left.…

    • 876 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Coffee In Colombia

    • 923 Words
    • 4 Pages

    Our text indicates two factors that contributed to this delayed economy. One being that Colombia had an unstable political climate, and another being the country’s difficult geography (Skidmore, 2014). Coffee production had a huge impact in both of these areas. Our text states that by 1880’s “coffee had become the country’s leading export (Skidmore, 191).” It was because of coffee that Colombia became a part of the international market. In 1906 coffee was responsible for 37% of Colombia’s export earnings, only to climb all the way to 80% by the 1950’s (Skidmore, 191).…

    • 923 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    During the early 18th century, coffee plants were brought to America from Ethiopia. It wasn 't until after the Boston Tea Party that the actual coffee drink became popular when switching from tea to coffee. Coffee began to become apart of Americans daily schedule consuming an average of two cups of coffee per day for an average adult. Coffee house businesses around the world began to rise and would drag consumers in creating income and jobs. Coffee effects not only the business but also the health and performance of the consumer.…

    • 1157 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Starbucks Scarcity

    • 709 Words
    • 3 Pages

    As one could probably imagine, supply is simply how much of a product is being produced. If the supply of a product increases, then the price decreases and the demand (how many people want to and are able to buy it) increases as well. Unfortunately, the exact opposite is true for coffee beans. In the past year, the supply of coffee beans from Brazil has decreased from 46 million bags to 40 million bags, a thirteen percent decrease. Brazil is the world’s largest supplier of coffee beans, and without their contributions, the other suppliers, i.e.…

    • 709 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Robusta Bean Case Study

    • 715 Words
    • 3 Pages

    Brazil, Vietnam and Indonesia are some of the biggest producers for Robusta coffee bean, however they all suffering though extreme weather such as the drought and too much rain. Those factors would cause the supply of the coffee bean to decrease significantly, which would lead to the increase in price for coffee. Before this change in supply, the demand and supply were at a market equilibrium where the demand meets supply at the equilibrium point and the market is in a state of balance. However, extreme weathers are non-price determinate that decreases the supply, thus causing the supply curve shift to the left from S to S1 and create a new market equilibrium with the demand curve at a higher price point. Moreover, because coffee beans are…

    • 715 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Threats 1. Depedent on coffee beans and dairy products, when those prices fluctuate so does the risk of increase prices, reduced profits, and loss of customers (Interbrand, 2013). 2. Any previously established drive thru can offer lower priced coffee and have the ability to change their menu more…

    • 1106 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Portola Coffee Essay

    • 1625 Words
    • 7 Pages

    According to an online survey conducted by the National Coffee Association (NCA) from January 9 to January 26, 2015, 57% of coffee drinkers prefer to buy their drink at a drive thru. When it comes to financials, Portola has a long way to go. As the company is not public it cannot raise capital through the equity market. Therefore business expansion will be difficult. Even if capital is raised through long term loans, it would be difficult to procure highly skilled baristas to prepare specialty coffee.…

    • 1625 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    The way it spread to Europe was through travelers. The book sates, “By the early seventeenth century, visiting Europeans were commenting on the widespread popularity of coffeehouses in the Arab world, and their roles as meeting places and sources of news” (page 140). Through visitation with the Arabs, Europeans may have grown fascinated by the coffeehouses and their ideas. This may have spurred the Europeans…

    • 1721 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Threat Of Coffee Essay

    • 927 Words
    • 4 Pages

    It requires land, capital, labor, and patience. There are a multitude of constraints to coffee production in Cauca, Colombia, but one stands out in particular: Hemileia vastarix, or coffee rust. Once coffee rust hits, it can completely decimate entire coffee farms and ruin coffee production not only during the current year, but in the next growing season as well. We all value our quick, cheap cup of coffee on the run. What would happen if coffee production stalled, and prices rose?…

    • 927 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    The nature of the beans, nonetheless, has regularly constrained their MARKETABILITY. Robusta espresso represents 97 for every penny of Vietnam's aggregate yield, with 1.17 million tons sent out in 2009, an estimation of USD 1.7 billion. Arabica creation is required to climb owing to the development of developing zones. Different sorts of espresso become in Vietnam incorporate Chari (Excelsa) and Catimor. Espresso is one of Vietnam's most vital horticultural fares.…

    • 1623 Words
    • 7 Pages
    Decent Essays

Related Topics