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Nearly two thirds of Americans drink coffee everyday, but how many of them know where it comes from? If you sip your morning joe from major brands like Starbucks, Dunkin’, or McDonalds, chances are it comes from one of several countries in Latin America.
Via Graham Watson
Another interesting article that highlights two things: the global nature of supply chains, and, the importance of moving up the value chain for development.
Whilst it's great to see so many countries exporting coffee, it's also sad to see how little role they play in roasting the coffee beans, meaning that they're unable to capture much of the value added in the production process. It's also salutary to think about how much market power Starbucks and the other US coffee retailers are likely to have in relation to developing nation coffee producers.
There are also implications for development - with the terms of trade for primary product producers likely to worsen over time, as a result of the YED of the products