Geopolitics And The Coffee Market: From Production In The Global South To Consumption In Rich Countries – CoffeeTalk
Coffee consumption has been a global phenomenon since the domestication of coffee several centuries ago. However, the production and marketing of this product are concentrated in poorer areas of the world, such as Latin American, African, and Asian states located between the Tropic of Cancer and the Capricorn. The two main species of the coffee plant are “Coffea arabica” (the most valuable, representing approximately 60/70% of world production) and “Coffea canephora”, which probably originated in the territories of Horn of Africa (Coffea arabica) and the Sub-Saharan Central and West Africa (Coffea canephora).
The Ethiopian Empire and the Mutawakkilite Imamate of Yemen were among the five empires worth 70% and 80% of global GDP at the dawn of the era of colonialism. Since then, coffee consumption has spread throughout the world, but production is concentrated in a series of Latin American, African, and Asian countries mainly concentrated in the range between the Tropic of Cancer and the Capricorn characterized by ideal climatic conditions for cultivation.
In 2023, the top 10 coffee importers were the USA, Germany, France, Italy, Canada, Japan, Netherlands, Spain, United Kingdom, and Switzerland. In 2023/2024, the top 10 producers (Brazil, Vietnam, Colombia, Ethiopia, Indonesia, Uganda, India, Honduras, Peru, and Mexico) placed on the market almost 150 million bags weighing 60 kg each. Between 1970 and 2000, coffee was the second most valuable commercial product exported from developing countries, with around 2.25 billion cups consumed per day worldwide.
The main issues behind coffee production include sustainability and rights. Over 90% of global coffee bean production is concentrated in developing countries, with 20 to 25 million families comprising approximately 125 million individuals oweing their livelihood to the economic activities linked to the cultivation and harvesting of coffee. This economic activity is still characterized by high incidence of labor factor and little automation.
Many voices have raised concerns over the living and working conditions of small farmers, who are often forced to sell their precious merchandise at multinationals at negligible prices. Additionally, the environmental sustainability of the coffee industry, often grown together with cocoa, corn, peas, and rice, has the effect of destroying vast expanses of territory, particularly in Brazil.
Read More @ The Journal
Source: Coffee Talk