The Coffee Paradox: Global Markets, Commodity Trade and the Elusive Promise of DevelopmentCan developing countries trade their way out of poverty? International trade has grown dramatically in the last two decades in the global economy, and trade is an important source of revenue in developing countries. Yet, many low-income countries have been producing and exporting tropical commodities for a long time. They are still poor. This book is a major analytical contribution to understanding commodity production and trade, as well as putting forward policy-relevant suggestions for 'solving' the commodity problem. Through the study of the global value chain for coffee, the authors recast the 'development problem' for countries relying on commodity exports in entirely new ways. They do so by analysing the so-called coffee paradox – the coexistence of a 'coffee boom' in consuming countries and of a 'coffee crisis' in producing countries. New consumption patterns have emerged with the growing importance of specialty, fair trade and other 'sustainable' coffees. In consuming countries, coffee has become a fashionable drink and coffee bar chains have expanded rapidly. At the same time, international coffee prices have fallen dramatically and producers receive the lowest prices in decades. This book shows that the coffee paradox exists because what farmers sell and what consumers buy are becoming increasingly 'different' coffees. It is not material quality that contemporary coffee consumers pay for, but mostly symbolic quality and in-person services. As long as coffee farmers and their organizations do not control at least parts of this 'immaterial' production, they will keep receiving low prices. The Coffee Paradox seeks ways out from this situation by addressing some key questions: What kinds of quality attributes are combined in a coffee cup or coffee package? Who is producing these attributes? How can part of these attributes be produced by developing country farmers? To what extent are specialty and sustainable coffees achieving these objectives? |
Contents
| 1 | |
2 Whats in a cup? Coffee from bean to brew | 50 |
3 Who calls the shots? Regulation and governance | 83 |
4 Is this any good? Material and symbolic production of coffee quality | 127 |
5 For whose benefit? Sustainable coffee initiatives | 164 |
6 Value chains or values changed? | 204 |
7 A way forward | 245 |
| 273 | |
| 285 | |
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Common terms and phrases
actors Africa agricultural agro-food auction bags beans blends brand Brazil buyers buying café cent certification chain for coffee Chapter cherries coffee market coffee prices coffee production coffee quality coffee value chains Colombia commodity markets commodity problem companies consuming countries consumption cooperatives Côte d’Ivoire developing countries domestic environmental espresso Ethiopia export fair trade fair trade coffee farm farmers Giovannucci global value chain grade green coffee Hard Arabica ibid important in-person service increased initiatives international coffee international prices international traders Italy Kenya labels labour mainstream coffee mainstream market market liberalization market share material quality Mild Arabica MNCs Nestlé organic certification organic coffee origin peaberry plantations Ponte premium producing countries proportion quality attributes Rainforest Alliance regulation relation retail roasted coffee roasters São Paulo SCAA selling smallholders sold specific standards Starbucks stocks strategies sustainable coffee symbolic and in-person Tanzania Tchibo Uganda UNCTAD Utz Kapeh