Coffee Supply Chain

  • Coffea trees grow in the “bean belt” (between the Tropic of Cancer at 23 degrees North of the equator and the Tropic of Capricorn at 23 degrees South of the equator)
  • 80% of the world’s coffee is produced by 25 million “Smallholder farmers.”20% is produced by large plantations
  • Farmers pick fruit called “cherries&rdquo
  • Farmers and Laborers process cherries to separate the skin and pulp of the fruit from its seeds, which are called “green coffee beans.”
Standard TradeFair TradeDirect Trade
Farmers sell green coffee beans to “coyotes” taking advantage of farmers’ lack of knowledge of and access to markets.Farmers sell green coffee beans to farmers’ cooperatives.Farmers sell green coffee beans to specialty roasters.
Intermediaries transport green coffee beans to central exporting collectorsIntermediaries transport green coffee beans to central exporting collectorsRoasters roast the green coffee beans—turning them brown.
Central exporting collectors send green coffee beans to shippers who send them to importers.Central exporting collectors send green coffee beans to shippers who send them to importers.Specialty roasters grind the coffee and sell it to you!
Roasters buy the green coffee beans on commodity markets.Fair trade organizations certify that green coffee beans have been produced following established environmental and humanitarian standards, and that farmers are paid guaranteed minimum prices. 
Roasters roast the green coffee beans—turning them brown.Roasters buy the green coffee beans on commodity markets. 
Roasted coffee beans are packaged and transported to distributors.Roasters roast the green coffee beans—turning them brown. 
Distributors distribute roasted coffee beans to retailers, like coffee shops and grocery stores.Roasted coffee beans are packaged and transported to distributors. 
Retailers sell the coffee to you!Distributors distribute roasted coffee beans to retailers, like coffee shops and grocery stores. 
 Retailers sell the coffee to you! 

MBA@Syracuse

Sources:

http://www.nationalgeographic.com/coffee/map.html

http://ww2.unime.it/emaf/index.php?option=com_content&view=article&id=57&Itemid=45&lang=en

http://www.forbes.com/sites/annefield/2014/07/16/a-supply-chain-overhaul-to-boost-coffee-farmers-income-400/#71c1d0d347b3

http://www.fairtrade.net/products/coffee.html

http://www.ers.usda.gov/media/199450/err38b_1_.pdf