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Effect of globalization on coffee industry
Importance of globalization in coffee business
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Fair Trade Coffee Explained When I woke it was pitch black. I couldn’t see a thing. I was dizzy, groggy, and could hardly think. Completely disoriented, I felt my way down a long cold hall. Eventually my fingers came across a small button. I pressed it without thinking of what might happen. I could hear a rumbling and then a dripping noise followed by the most pleasant odor I have ever smelled before. That button was attached to my coffee pot. As a student, I feel that I speak for many when I say that there is no way to start a day than with a hot cup of coffee. As a matter of fact, Coffee is among some of the top globally traded commodities in the world. Since it has become such a large commodity, it has be questioned if the methods of producing …show more content…
Most people notice fair trade in grocery stores like Trader Joe’s or World Market but you can also encounter it through local businesses. Coffee shops in Richmond such as Stir Crazy, Black Hand, and Globe Hopper sell fair trade coffee. There is even a bean roasting company, Blanchard’s, which roasts fair trade imported coffee beans. This is great news in the eyes of FLO and FTUSA. The fact that so many shop’s and stores sell fair trade coffee means that many farmers and workers are being paid fairly for their product. According to the prices and premiums set by Fair Trade International, the fair trade minimum price is $1.40 per pound for conventional and $1.70 per pound for organic coffee. If we compare this to the $1.32 stated earlier, fair trade farmers will make on average 8 to 38 cents more per pound of coffee than non-fair trade farmers. Fair trade farmers also receive a 20 cent per pound premium on top of the minimum price. The premium requires that the farmers put at least 5 cents back into the improvement of production and quality of their product. This gives the farm more money to help pay for better working conditions and also help pay the workers a better wage. With more money going to the farms and a fair trade label on the product, consumers can rest easy that the product they are buying is helping provide a proper wage for the farmers and pickers of the coffee beans. Is fair trade really helping those who produce and cultivate coffee beans? Many will argue that it is not and some argue that it is actually causing more harm than good for the coffee
Coffee is a truly a mythological treasure. It serves the dual functions of waking one up and providing one with relaxation. It is both acid and base, bitter and sweet, caustic and comforting. It is used for an array of purposes: to soothe, to give energy, to lend fortitude, to bring people together. Sometimes it is ascribed almost supernatural healing properties. In Mario Puzo’s The Fortunate Pilgrim, coffee takes these roles and more: the drinking of coffee is an immensely important ritual that serves a myriad of social functions and responds to a wide range of human emotions.
Fair trade should give protection to governments from exploitation. For example, small farmers can be protected by giving government food sovereignty. An article from the Chicago Democratic Socialist Organization proposed, “The agreement must return to governments the ability to safeguard food sovereignty by protecting family and small-scale subsistence farmers” (Chicago Democratic Socialist). Rewriting the agreement can protect the small farms and retain jobs for farm workers. The article further addressed an issue discussed previously, “Large-scale importation of basic grains into Mexico is a major cause of the economic collapse of rural communities, which forces millions of undocumented migrants to seek work in the USA” (Chicago Democratic Socialist). Therefore, it would solve problems both in the US and Mexico. It will take efforts of the many to renegotiate NAFTA, and many other terms needs to be added. The general direction should focus on protecting the interest of the general public by restricting corporate powers. Fair trade will reduce the problems caused by
Several people rely on caffeine to wake them up or give them a boost of energy when they feel down. Acting as a stimulant, caffeine not only improves concentration and focus, but also stops fatigue (Staff 1). Considered the most commonly used psychoactive drug in the world, approximately 90 percent of adults consume it daily (“MedicineNet.com” 1). But do caffeine buyers really stop to evaluate the possinle harmful effects on their body? Health scares similar to this are not recent. In fact, they have been going on for over 100 years. In 1911, the US Government sued the Coca-Cola company for making their drinks hazardous to other’s health (Lovett 2). Although the Coca-Cola company won, it proves that people worry about what they put into their bodies, even if it does help them stay up to finish their homework. Not everybody will experience the same effects from caffeine. Some people seem more sensitive to caffeine than others (Staff 1). While some will express unwanted effects after only one cup of coffee or tea, others will not notice these same effects until after maybe four or five cups. Although caffeine does include benefits, many downfalls exemplify the stimulant as well. Drinking even small amounts of caffeine daily develops harmful effects on most people’s body and health.
Caffeine and coffee are a daily part of life for most people in modern society. The discovery of the coffee bean is said to have been in Ethiopia, when a sleepy eyed goat herder noticed his goats eating red berries, he then noticed the effect it had on them as they jumped and danced around him. He then tasted the berries and his eyes opened wide, he took them to the local village who also liked it and in particular the monks who used the berries to keep them awake during meditation.
Scrutiny of caffeine and its effects has increased dramatically in the last 20 years, due in part to an increase in consumption of caffeine. In fact, coffee consumption among young adults rose to 3.2 cups per day in 2008 from 2.4 cups per day in 2005 (Rokerya 1). For instance, in a one hour period, on Richland College’s on-campus Starbucks, the author took note of how many customers arrived and purchased a cup of coffee. Between 8:00 and 9:00 AM, there were 51 customers, implying that – especially at college - many people are dependent on coffee in the mornings. However, the results from these studies are inconclusive and often somewhat contradictory – many studies (such as that by Tetsuya Ohara et al.) show that caffeine is a great boon to
Fair trade is defined as the practice of directly benefiting producers in the developing world by buying straight from them at a guaranteed price. As a first world country, the United States is enamored with the concept of helping those in need, and fair-trade products are an essential component to that idea.
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
The movement particularly emphasizes on exports from developing countries to developed countries, with products such as handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers and gold. Moreover, coffee is one of the most widely traded goods in the world. For many developing countries, coffee trade is an important source of income. Producers can provide a better trading and improve terms of trade. Moreover, this allows producers to improve workers’ living environment and future life in general (De Pelsmacker, Driessen and Rayp, 2005).
Americans are obsessed with a lot of things: our smart phones, celebrities, and finding a good bargain. But perhaps the thing we’re most obsessed with is good ol’ coffee. For many of us, our mornings are perfectly diabolical without at least a cup or two or three of the stuff. And, come 2 o’clock, when we know in our heart and bones we’ll never make it ‘til five and we need that pick me up, many of us head to the nearest deli or barista to grab a cup of “second wind.”
Free trade in today’s economy allows so much more than just jobs and goods at lower prices for Americans. Compared to the foreign competition, the free trade benefits outweigh any risks the foreign competition might impose on the US. As said by Denise Froning in her article, free trade benefits in four ways. “Free trade promotes innovation and competition, Free trade generates economic growth, Free trade disseminates democratic values, and Free trade fosters economic freedom.” Societies that enact free trade policies create their own economic enthusiasm, nurturing freedom, job opportunities, and success that benefit every citizen. Free trade is the only type of fair trade because it offers consumers the most choices and best standards to improving their type of living. Also by fostering opportunitie...
Coffee is the first thing that people associate with instant energy on a groggy morning. “In the U.S., coffee is king of beverages” (Reinke) Research has been done that has named coffee as an addiction to the people who consume large quantities of it. Coffee was named the top source of antioxidants. This is partly because of the amount consumed each day. Some of the antioxidants that coffee has are quinines and chlorogenic acid. It also contains trigonelline, an antibacterial compound. This is where coffee acquires its delicious aroma. Now let’s step back for a minute and just think about how much caffeine people consume. In an 8oz cup of coffee it has about 85 milligrams of caffeine. This is about double the amount that tea contains. Studies have shown that caffeine stimulates the brain and nervous system. This is where you get that energized feeling. After about the third cup, knees start to bounce, pens are clicking and people start running laps around the office. Caffeine can become addicting if you drink too much. Coffee can become that addictive habit people are unable to shake.
In countless homes and numerous cultures, drinking morning coffee is a staple routine. One can drink it alone at home, in a car en route to work or school, or stop at a coffee shop or café and enjoy it among other people. In developing my routine this year, I chose the latter practice. Every morning I arrive at a local coffee shop, smell the same aromas, order the same drink, sit in the same chair, and observe the same people who continue their morning customs as well. For several months now, my mornings have consisted of this, and every morning, I would mainly observe one person; an old man who has become somewhat of a fixture at this coffee shop and who has not changed his routine as far as I have witnessed. He is already there when I arrive every morning, sitting alone at the small table for two in the corner by the window, drinking his small cup of black coffee, and reading the newspaper. He is on a first-name basis with the workers and owner, and often chats with some of the other regulars. After months of polite smiles, quiet “good mornings”, and creating a background of this old man in my own mind, I finally get the courage to approach him. I start the conversation with him about our similar morning routine, and it gradually develops into a soft and informal interview.
Millions of Americans begin each day by consuming the most widely used drug in the United States: caffeine. Over 90% of United States adults consume caffeinated food or beverages on a daily basis and over 50% take more than the recommended amount. Our innocent daily ritual can turn into an addiction for some, because many do not realize that caffeine is even a drug, let alone the effects it can have on their bodies. Its use is becoming more and more prominent in our society. It’s not uncommon to walk outside and see a Starbucks or coffee shop on each corner.
Fair Trade is considered as an alternative trading system, which aims to protect the economically disadvantaged producers, especially in developing countries. It provides transparency and respect in international trade (Gingrich and King, 2012). Besides, Fair Trade also contributes to sustainable development by offering better trading conditions for marginalised producers and workers and securing their rights (Mohan, 2010).
In conclusion, Fair Trade provides reasonable amount of evidence that it is a great way to improve the lives of the workers. Reading more about Fair Trade gives the consumers a better understanding of how to help those who work under horrible conditions. Going out of our way to buy foods that are a little higher than usual would not hurt us. Personally, after researching Fair Trade, I would try my best to go to whole food markets in order to buy food products that are a little higher than regular price.