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Food and Agribusiness

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Food and Agribusiness

Production of Coffee

Around 70% of the world's coffee originates from Arabica beans, the majority of which

are farmed in Latin America, making it the second most valuable commodity globally. Many

small-scale local farmers or major coffee plantations cultivate the beans in the center of the

coffee farms. This group sells coffee directly to coyotes, who act as intermediaries for the export

markets to maximize profits. However, large coffee estate owners generally sell their goods in

the New York Coffee Exchange and price them according to their prices, so they receive

significantly more money than smaller coffee estate owners (Ohio State University, 2015).

Exporters and major plantation owners sell green coffee to importers.

How the Coffee Reaches Consumers

The importers then sell it to retailers responsible for making the final product available to

consumers. To put it simply, Brazil is the world's largest producer and exporter of coffee. On the

other hand, the United States is the world's leading importer of coffee beans (Bair, 2009). Once

the beans are purchased, the importers roast the coffee before selling it to consumers. Starbucks,

Alterra Coffee Roasters, and New England Coffee are some of the companies known to roast

their coffee before selling it to consumers. Customers buy the finished product from merchants

like Dunkin' Donuts and Starbucks. Consequently, coffee is passed through several hands before

it reaches the consumer, starting with the farm, then intermediaries who improve its quality, and

finally importers who sell it on to retailers.

Vulnarability of Workers in the Supply Chain

There is a lot of human labor and tediousness involved in picking coffee cherries in most

regions. As a result, the growing areas lack the essential machinery to perform these tasks.
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Unautomated labor practices boost production costs by up to 60% in most farms and plantations,

according to Bertazzo (2017). This is a significant problem for producers and can have a

devastating impact on profit returns. Weeding, spraying, picking, and measuring coffee berries

are all tasks performed by farm laborers. There is a possibility that farm chemicals, wild reptiles,

machine equipment, and coffee trees will poison them and that they will be wounded (Dowding,

2010). Interaction with industrial machinery, respiratory diseases caused by air pollution, and ear

damage or hearing due to sound pollution put them at risk. It is possible to eliminate all of these

issues if staff is given disposable clothing, such as disposable coats, boots, gloves, hats, and

masks. However, these kinds of protective gear are not always provided.

Available Protections for Workers

The pay of a coffee worker is pitiful, and as a result, they are forced to live in poverty.

Workers in coffee-producing countries like Brazil are required to be contractually bound to the

companies they work for to benefit from health, disability, and retirement insurance. To avoid

paying insurance payments, some workers are given higher salaries to relinquish their

contractual registration. Lack of job formality is a contributing reason for producers' inability to

get employees to harvest in other exporting regions, such as Colombia (Perfect Daily Grind,

2020). Even though the harvesting of Arabica coffee beans occurs over six weeks, it is

considered a permanent job.

Implications of COVID-19 for Grocery Store Workers/ Truck Drivers/ Serving Staff

Over the past two years, the global spread of Coronavirus has caused immense suffering,

resulting in the deaths of several people and the confirmation of millions of new cases. People

isolate themselves and avoid social gatherings to avoid acquiring the sickness and spreading it.

Some facilities, such as restaurants, parks, and schools, have been forced to close due to the
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spread of the disease. The spread of COVID-19 altered our way of life and substantially

impacted the world economy, as seen by the decline in economic output (Fernandes, 2020). The

virus is affecting travel and hospitality firms. In the months leading up to April 2020, there

was a significant drop in the number of people employed and a rise in the number of people

working fewer hours. Because of this, other industries needed people (Guerrieri, Lorenzoni,

Straub & Werning, 2020). There might be delays and shortages in certain products due to a lack

of truck drivers, meat processors, and grocery store employees. Some businesses expanded,

while others came to a complete halt. Most eateries had to close or switch to home delivery due

to the "stay at home" directive. Grocery and online shopping saw a surge in demand as customers

kept stockpiling food for consumption and spent more time at home.
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References

Bair, J. (2009). Frontiers of commodity chain research. Stanford, Calif: Stanford University

Press.

Bertazzo, S. (2017). Coffee's bitter side: addressing labor conditions. Retrieved September 8,

2020, from Conservation International website:

https://www.conservation.org/blog/coffees-bitter-side-addressing-labor-conditions

Dowding, T. J. (2010). The Coffee Bean: A Value Chain and Sustainability Initiatives Analysis

Melissa Murphy, University of Connecticut, Stamford CT USA.

Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world

economy. Available at SSRN 3557504.

Guerrieri, V., Lorenzoni, G., Straub, L., & Werning, I. (2020). Macroeconomic Implications of

COVID-19: Can Negative Supply Shocks Cause Demand Shortages? (No. w26918).

National Bureau of Economic Research.

Perfect Daily Grind., (March 24, 2020). What are the challenges facing coffee farm workers?

Retrieved from the Perfect Daily Grind. https://www.perfectdailygrind/2020/03/what-are- the-

challenges-facing-coffee-farm-workers/

The Ohio State University. (2015, November 22). Coffee, World's Second Most Valuable

Commodity. Retrieved September 8, 2020, from Commodity Chain of Coffee website:

https://u.osu.edu/commoditychain2015/