By Matija Šerić
Worldwide, 25 million families earn their living from coffee. When the number of family members is taken into account, this means that up to around 100 million people today depend on the cultivation, distribution, and sale of coffee. In Brazil, which produces nearly one third of the world’s coffee, more than five million people are employed in the cultivation of over three billion coffee plants. The coffee plant is a more labor-intensive crop than other agricultural crops in the same regions, such as sugarcane, since its cultivation is not automated and requires a high level of human attention.
Neocolonialist trends in the global coffee market
According to research by experts on the global coffee trade, over the past three decades the biggest beneficiaries of the world coffee trade have been processors in developed countries such as Germany, Italy, and Switzerland. In contrast, small coffee growers in producing countries have, on average, only moderately increased their incomes. The highest profits in the global coffee value chain have been made in the coffee-roasting sector. Over the past 30 years, both prices and volumes of sold roasted coffee and related coffee products, such as coffee capsules, have increased significantly. The volume of roasted coffee exports has quadrupled, while export prices have increased as much as sixfold. By comparison, the quantities and prices of exports of unroasted, green coffee beans have risen by only about 60%.
Countries in the coffee belt export around 70% of their coffee products, and 87% of these exports are in the form of original, unprocessed (unroasted) green coffee. This is not surprising, as coffee roasting requires costly investments and is technically demanding in order to achieve a consistent and recognizable flavor. As a result, coffee processing is mainly carried out by wealthy companies in developed Western countries such as Germany, Italy, or Switzerland. In addition, it is much more difficult to transport roasted coffee over long distances from, for example, Brazil, Myanmar, or Ethiopia to end consumers—primarily in North America and Europe—without a loss of quality. Therefore, roasting coffee in producing countries for Western markets is limited to only a few products.
Given such circumstances, a handful of Western coffee companies dominate the market (Lavazza, Illy, Nespresso, Douwe Egberts, Julius Meinl, Tchibo). At the same time, these companies bear enormous social responsibility toward the countries where coffee is grown. For example, they should ensure sustainable coffee cultivation as well as good working conditions, fair wages, and more appropriate use of technology and machinery in the fields. Unfortunately, most companies behave in a neocolonialist manner.
Arabica and Robusta coffee
When Arabica coffee beans (which are typically used for roasted coffee) are grown, farmers can increase their incomes only by improving the quality of the beans. In contrast, with Robusta coffee beans (which are primarily used for instant coffee), producing countries can invest in processing technology. Instant coffee can therefore be transported over longer distances and is less complicated and cheaper to produce. Vietnam and Ecuador, for example, have over time managed to develop appropriate instant coffee production sectors. Sound state policies can support the production and export of instant coffee through attractive conditions for investors and high-quality transport infrastructure.
Coffee as a valuable commodity in the 21st century
Coffee remains a key commodity deep into the 21st century for many developing countries such as Brazil, India, and Vietnam. Dependent on coffee, these countries generate income and secure funds for education, healthcare, and infrastructure projects. The impact of coffee on their economies is enormous and helps alleviate poverty and stimulate development. Coffee is more than a simple beverage—it is a phenomenon that has shaped the course of human history. From early trade routes to modern cafés on every corner, coffee is woven into the culture, economy, and society of the most diverse peoples and states. Its influence is global. Coffee is a symbol of alertness and innovation, and its impact will certainly continue to shape the future of humanity. Regardless of price increases, coffee will not disappear from our lives, even though many today would classify it as a luxury product.
