Term Assignment

However, before completing this report, I had not truly understood the hard work of coffee farmers, as well as the global connections around the oral which coffee is produced. It is apparent that the history Of coffee is intertwined with the aspects of the globalization process, role of Multi- National Corporations and the global economic sector. The coffee industry has proven there is a never-ending shift of global power through the global economy. Throughout the history of coffee, it is apparent that factors involving the globalization process such as absolute advantage and comparative advantage have had an impact on the coffee industry.

Although coffee was discovered in Ethiopia, it had eventually spread to all parts of the world. This specific industry was very attractive to other countries that had the substantial climatic aspects or effective companies to establish this business. As technology became more advanced, transportation expanded rapidly throughout the world. In addition, transporting coffee became easier, quicker and more efficient. Many multinational corporations in the coffee industry have succeeded tremendously within their corporations.

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Each of these corporations use strategies that help them continue to expand to nations of different cultures, ethnicity, governments and locations. Connection Number 1: Ethiopia Ethiopia is the birthplace of coffee located in Sub-Sahara Africa. In the tenth century, Ethiopians were the first to recon size coffee’s stimulating effect. Ethiopia has a population of nearly seventy five million people, many of whom struggle to make a living from their production and export of primary goods (The Ethiopians Coffee Company, 5).

Sixty four percent of the population does not have easy access to clean and safe water systems (The Ethiopians Coffee Company, 5). Fifty percent of the population lives in economic poverty (The Ethiopians Coffee Company, 5). Majority of the communities do not even eave access to electricity. There are many reasons for this poverty, however, the combination of regional conflict and dependence on exporting primary agricultural products are often obstacles to more inclusive sustainable growth. Ethiopians history has been full of dramatic changes. Over the last four decades the Ethiopians people have lived under three different forms of government.

This has caused a lot of dissatisfaction, armed resistance and rebellions throughout the country. Ethiopians coffee crisis occurred within a context of chronic economic poverty and persistent social conflicts. In 2003, fee prices plummeted to their lowest levels in Ethiopians coffee history (The Ethiopians Coffee Company, 8). The prices had no longer covered farmers’ costs of production. Many producers abandoned their farms in rural regions and migrated into the city. Farmers’ incomes were reduced and families were often not able to buy basic material necessities.

Ethiopians coffee is one of the most popular coffee origins in the world. However, Ethiopia must compete and partner with the coffee companies which generally have more market power and earn higher profits. Annually, the average Ethiopians coffee farmer earns about $900 per year. The women who work in the coffee processing warehouses can make as little as $20 a month (The Ethiopians Coffee Company, 10). About twelve million Ethiopians make their living from coffee. Despite these difficulties most Ethiopians farmers are still dedicated to coffee cultivation.

Connection Number 2: Middle East The pilgrims of Islam spread coffee throughout the Middle East. Arabica coffee has always grown wild in the forests of the south-western highlands. The total area covered by Arabica and other types of coffee is about 400,000 hectares (Castle, 20). Total coffee production is about 200,000 tons of coffee per year. This directly affects he livelihoods for over 15 million people in this country (Castle, 21). Today coffee production is under the strict control of the Indian Coffee Board, which many say has reduced economic incentive and thereby lowers quality.

Coffee drinking is a part of the habits and traditions of those living in the Middle East. Arabic coffee differs from European and American coffee in terms Of taste, cup volume and method of preparation. In the Middle East coffee is consumed for more spiritual reasons. Here coffee is passion; Arabic coffee is unique through the selection of beans and method of roasting. They can range from lightly roasted to very dark roast with various degrees in between. Differently roasted beans are sometimes combined together and in most cases have spices added to them.

When comparing to Italian coffee, which is often made with milk, in contrast coffee in the Middle East is virtually never made with milk; instead many of the blends are flavored with spices such as cardamom, cloves, ginger and saffron. Middle Eastern people say together these variables make for a very different coffee experience. After drinking coffee it is tradition that you snack on dates to ease the bitter taste. In this time you are to reflect on the coffee cup. It is a much more spiritual experience. The price paid for coffee in the Middle East is just a very small part Of what will go to the owners of the coffee fields.

In remote countries even less will go to those who spend their days growing coffee in harsh working conditions. Most of the money goes to the importer, the retailer, international shippers and import taxes (Castle, 21 Connection Number 3: Europe In the mid-1 odds, Cote divorce was the number five coffee producer and second largest Robusta producer (Steam, 3). The decline was an emphasis on volume and lack of investment planning lowering quality and per-acre productivity. Today most exports end up as mass market coffee in Europe, especially France and Italy.

The Dutch were the first European colonial power to enjoy much success in planting coffee in their colonies when they brought it to Java in the 1 sass (Steam, 3). First reports of coffee arriving in Amsterdam were in 1 706 (Steam, 3). Peasants were forced to grow coffee and sell the exotic crop at a set price to Dutch stores. In Amsterdam and Rotterdam the coffee was auctioned off every six months at first, then every three months and after 1864 every month (Steam, 4). Today, villages are required to tend and harvest several hundred trees and are paid an extremely low price to do so.

There are government plantations, which produces around 120,000 tons (Steam, 4). The Dutch gave coffee a nickname in the late seventeenth century, when they began the first successful European coffee plantation on their island colony of Java. Top-grade Rabbit’s are still produced in Java, but the Indonesian archipelago is most notable as he world’s largest producer of Robusta beans (Steam, 5). Most workers are paid the equivalent to sweatshop wages and work under harsh conditions. Coffee pickers have to pick a 1 00 pound quota in order to get the minimum wage of $3 a day (Steam, 5).

Many workers bring their children to help them in the fields in order to pick the daily quota. These child workers are not officially employed and therefore not subject to labor protections. Working conditions in plantations are harsh. As migrant framework’s, many sleep in temporary shelters with rows Of bunk beds. Many times they cook, and bathe from the same water source. Connection Number 4: Indonesia Indonesia is one of the world’s top coffee producing and exporting countries. Most of its production is the lower quality Robusta type. Indonesia is also famous for having a number of specialty coffees.

Coffee was introduced to the archipelago by the Dutch who initially planted coffee trees around their stronghold of Batavia but quickly expanded the coffee production to the Bog and Submit regions in West Java in the eighteenth century (Smith, 10). Indonesia proved to have a near ideal climate for coffee production, which is why plantations were soon established on other parts of Java. Indonesian coffee plantations cover approximately 1. 3 million hectares in total (Smith, 9 More than 90 percent Of these plantations are cultivated by small scale producers (Smith, 9).

The higher quality Arabica beans mostly come from South American countries such as Brazil, Columbia, El Salvador and Costa Rica (Smith, 14). Export of processed coffee is only a small fraction of total Indonesian coffee exports. Starting from the 1 sass, Indonesia has shown a small but stable increase in domestic production of coffee (Smith, 15). However, according to data from Statistics Indonesia, the size of coffee states in Indonesia are in decline as farmers have become more focused on products from the oil palm, rubber and cocoa which all have higher yields on the international market.

Coffee estates have thus been transformed into plantations of other commodities. In general, coffee pickers, migrant workers and framework’s are the most vulnerable groups involved in coffee production. They have traditionally not been included in the coffee industry sustainability efforts. These workers are forced to work long hours under terrible conditions with little pay (Smith, 18). Connection Number 5: Americas Hawaii is the only place in the united States where coffee is grown. Good coffee growing conditions require high altitudes, tropical climates and rich soil and there is only one state in the U.

S that fits that mold. Hawaii has been producing coffee since the nineteenth century. Although coffee is produced on all the Hawaiian Islands, it is Kong coffee, which is grown on the Big Island. Kong coffee is grown in the rich volcanic soil. The coffee may be harvested all year round in the Hawaiian Islands, the primary season begins at the end of the summer and may last until the beginning of the spring. Many Kong farms re direct marketers of their own coffees. This is great in order to return the highest price to you for all the work.

However, in order to distinguish themselves from others, a lot of sites make up information about their coffee. The Kong region has between 650 and 700 coffee farms, much more than any other country world-wide (Sad, 28). Most of these coffee farms are just three to seven acres in size (Sad, 29). With the decline and then complete end of the sugarcane era in the Hawaiian Islands there has been a recent move toward planting coffee as an alternative agricultural crop on many areas other than Kong. Due to the widespread of coffee producing farms in Hawaii, there is also a widespread of violations.

Violations include failures to pay workers minimum wage and overtime, exploiting migrant workers, illegally hiring coffee pickers as independent contractors, and exploiting children as young as five years old to pick coffee cherries. Investigations conducted by the division’s Honolulu District Office in 2012 resulted in more than $63,000 in back wages for 150 workers (Sad, 30). The State of Hawaii produces about nine million pounds of green coffee beans each year (Sad, 28). Connection Number 6: Brazil Brazil is by far the largest supplier of coffee today. Brazil produces over forty percent of the world’s coffee worldwide.

Coffee is a major agricultural crop in Brazil. Many Brazilian coffees are mechanically stripped from the coffee tree rather than being individually picked by hand. This mechanical picking results in much more coffee bean income in Brazil at a faster pace. Another important factor for coffee production is altitude, a lot of Brazier’s coffee beans are not grown in grassland areas and non-volcanic soil. These conditions make it ideal for coffee producers (Lee, 13). Today, Brazil coffee beans are not only used for coffee blending but are also not pre-blended for those who wish to roast them at home.

Thus the quota system of coffee consumption has increased. A vast majority of coffee farms in Brazil are less than ten hectares in size (Lee, 16). Coffee is one of the most important agribusiness commodities, maintaining steady and growing value in the stock market. The largest buyers of Brazilian coffee worldwide are; Germany, United States, Italy, Japan and Belgium (Lee, 17). The coffee consumed inside the country is the worst of its production, as the finest crops are destined to exportation. Many Brazilian find it absurd to spend money on a cup of coffee.