Essays on Injustices in the Coffee Industry Case Study

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The paper "Injustices in the Coffee Industry" is a good example of a business case study. Over the decades, the coffee industry has been one of the primary earners for different countries. Notably, nations such as Kenya, Ethiopia and Uganda generate a majority of their revenue from the production of coffee beans. Additionally, states like England and the United States of America derive significant amount from manufacture and selling of coffee products. Coffee stakeholders face numerous injustices even though the industry is vital to the economic growth of various republics. Many producers receive low payments for their products and limited information on the production of high-quality coffee beans.

Also, some lack of access to credit facilities that are influential in funding the production of coffee. Retailers and wholesalers exploit consumers through unnecessary overpricing of coffee products. Further, they exploit producers by acquiring their coffee beans cheaply. On the other hand, some producers sabotage the manufacturing process as they sell their farms abruptly; hence, the shortage of raw materials for production. The knowledge of the various injustices in the coffee industry on producers, retailers, manufacturers and sellers is necessary to persons that aim at venturing into the business. Injustices on Producers Farmers are the primary stakeholders in the coffee industry.

Production and selling of coffee are vital to the livelihood of millions of them globally. Coffee markets in countries such as Kenya and Ethiopia in Africa are skewed. As a result, most brokers in such nations fail to pay agriculturalists in time due to growers` lack of knowledge of business terms and disparity to sell their coffee at a profit. For instance, McGhee (2011) argues that farmers in Kenya often experience late payments for their coffee berries.

Most dealers sell these crops through auction and only compensate farmers six months later. A delay of funds pushes most coffee farmers in that country to acquire loans to support their farm activities and livelihood. Similarly, in Ethiopia, the government sets relatively low prices for coffee farmers. Thus, most do not reap maximum benefits from their production activities. The trend of low and late payments hurts farmers since they hugely depend on the cash from the sale of coffee beans for surviving and funding farming activities.

Additionally, most of them invest vast sums of money in leasing lands, cultivating, paying labourer and purchasing farm inputs; hence government and brokers should consider that before resorting to underpayments. Equally important, coffee farmers face numerous weather condition challenges that affect the production of pure and organic coffee for consumption. The climatic conditions range from extreme temperatures to lack of organic fertilisers. For example, Kenya farmers spend more money to grow extra trees to provide shades and protect their coffee from extreme temperatures.

They use expensive artificial fertilisers to grow their coffee beans and often suffer during dry spells due to lack of knowledge on moisture conservation process. According to Karanja and Nyoro (2002), the government of Kenya does little to help the farmers but expects farmers to produce high-quality coffee berries. According to McGhee (2011, Ethiopian coffee farmers are ill-equipped and lack basic farm tools and fertilisers to grow their products. The two government are unfair to farmers as they heavily tax their products, but offer little help. Lack of government help affects the quality of coffee the two nations produce.

As a result, it affects the revenue collections because low-quality beans fetch less revenue to a country as compared to high-quality ones. The governments should educate farmers on the best farming practices and provide subsidies on farm inputs such as fertilisers and seeds to facilitate the production of high-quality beans.

References

Biswas-Tortajada, A., and Biswas, A. K. 2015. Sustainability in Coffee Production: Creating Shared Value Chains in Colombia. London, England: Routledge.

Giovannucci, D., and Koekoek, F. J. 2003. The state of sustainable coffee: A study of twelve major markets. The State Of Sustainable Coffee: A Study Of Twelve Major Markets, IISD, UNCTAD, ICO.

Stauffer, C. 2014. Brazil’s Coffee Farmers Are Yielding To The Machines. Available at: http://www.businessinsider.com/r-brazils-drought-hit-coffee-belt-turns-to-machines-to-lower-costs-2014-8 (Accessed: 11 October 2015).

Linton, A. 2005. Partnering for sustainability: business–NGO alliances in the coffee industry. Development in Practice, 15(3-4), pp. 600-614.

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