1. Coffee Kelly Hoffman

2. Production Top Producers: Brazil, Colombia, Cote d’Ivoire Production located in South America, Africa, South and Southeast Asia 7.4 million metric tons produced annually

3. Production Small, local growers Plants mature in 3-4 years Plant lifespan: –Full sun: 6-8 years –Shade: 18-24 years Production Process: –Bean  Harvest  Processing  Roasting

4. Consumption United States consumes 25% (463 cups/capita annually) Europe consumes 40% 2 billion people drink coffee regularly 9000 Starbucks franchises worldwide

5. Consumption Shift to high-end coffee Overall decline in consumption Real prices at all-time low Roasting shifting to importing countries

6. Trade Value: $8,441 Million (2nd to Petroleum) Share of World Production: 76% Prices declined 57% between 1960-2000 Kraft, Nestle, P&G, Sara Lee, Tchibo buy nearly 50% of coffee beans grown

7. Source: International Networks Archive

8. Environmental Implications Growing –Deforestation (full sun) –Soil quality –Pesticides –Water quality from run-off Processing –Water quality

9. Social Implications Real prices at all-time low Farmers operating at a loss Poverty Child labor Possible shift to drug trade Fair Trade labeling

10. Fair Trade Labeling Guarantees farmers a higher price for coffee Market Share: –US: 3% –Europe: 4-7% 85% certified organic Growth: 40% per year (2001-04) Sales: US$55 million (2003)