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Coffee Is An Important Commodity

  • Updated March 27, 2023
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Introduction

It’s the beverage that many of us rely on to kickstart us into action in the mornings and in today’s world, it’s more than just popular, it’s ubiquitous.

Environmental Impacts of Coffee Production

Next to oil Coffee is the worlds second most tradable product and it has become a multibillion-dollar global industry that continues to grow. In 2014 roughly 2 million hectares of agricultural land was allocated for the harvesting of green coffee. Most people have heard of fair trade coffee but do many of us actually stop to think about what impacts coffee has is having on our plant? Some of these impacts include forestries being cleared to make way for sun cultivated coffee, as seen here (point to photo), waste – there is so much waste that comes from the production of coffee – over a 6 month period in 1998 it was estimated that the production of 547,000 tons of coffee in Central America alone generated 1.1 million tons of pulp and polluted 110,000 cubic meters of water every single day.

Environmental impacts of coffee consumption

Coffee is one of the most widely used hot beverages in the world. As seen here this graph ranks the worlds highest coffee consuming countries in 2015 based on the litres per capita. During that year the Netherlands topped the list with an average coffee consumption of 260.4 litres per capita each year. Among consumers, in the U.S around 16% of people were reported to be drinking around4 and 5 cups of coffee a day. With an average of 50,000 cups of coffee being consumed a day and around 1 billion every year, if we lined up all of the takeaway cups consumed in Australia around the world they would wrap around twice. That’s a lot!

Social Impacts of Coffee Production

Coffee has enormous social and economic significance, as the second most traded commodity, it is one of the main sources of income for nearly 50 countries. Africa and Asia, as well as the developing and less developed countries of American Continents, are the main exporters of coffee. Traditionally the income generated by coffee has been considered as a source of social and economic stability for over 25 million farming families in both tropical and subtropical regions all around the world.

Cofee Social impacts of coffee consumption

Coffee has always found a way to be at the centre of our lives in one form or another since the 15th century. When you think about coffee many things come to mind, waking us up in the morning, a boost of energy, social interaction or just because we like the flavour. Coffee is consumed at all times during the day and in many different cases. Another important part of coffee is the social aspect of it. Some social factors also contribute to the fact that coffee is one of the most widely consumed hot beverage in the world today.

Economic Impacts of Coffee Production

Coffee is a popular beverage and an important commodity. Tens of millions of small producers in developing countries make their living growing coffee. Over 2.25 billion cups of coffee are consumed in the world every day. 25 million small producers rely on coffee for a living worldwide. In Brazil alone, where almost a third of all the world’s coffee is produced, over 5 million people are employed in the cultivation and harvesting of over 3 billion coffee plants.

Economic Impacts of Coffee Production

We already know that coffee is the most commonly consumed beverage in the U.S (even more than tap water), The scaa (Specialty Coffee Association Of America) 2014 economics of the coffee supply chain report gave us a glimpse into the complexity of the coffee supply chain. Although, it turns out that coffee touches communities across the world in amazing ways from generating tax dollars to creating jobs, from the supermarket to the farm.

Highlights Include

The total economic impact of the coffee industry in the United States in 2015 was $225.2 billion. The coffee-related economic activity comprises of approximately 1.6% of the total U.S. gross domestic product. Consumers spent $74.2 billion on coffee in 2015The coffee industry is responsible for 1,694,710 jobs in the US economy. The coffee industry generates nearly $28 billion in taxes (including ancillary goods)

Cite this paper

Coffee Is An Important Commodity. (2020, Sep 17). Retrieved from https://samploon.com/coffee-is-an-important-commodity/

FAQ

FAQ

Is coffee a commodity good?
Yes, coffee is considered a commodity good as it is a raw material that is traded and its value is determined by supply and demand in the global market. The price of coffee fluctuates based on factors such as weather conditions, production levels, and consumer preferences.
What does coffee commodity mean?
A coffee commodity is a physical good or product that is traded on an exchange. Coffee commodities are typically traded on futures exchanges.
What type of commodity is coffee?
Coffee is a type of commodity that is grown in tropical climates and is the seed of a coffee plant.
Why is coffee a commodity?
Cognitive behavioral therapy is a type of therapy that focuses on helping people change their thoughts and behaviors. An example of cognitive behavioral therapy would be helping someone with anxiety learn how to control their worry by changing the way they think about their anxiety triggers.
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