Assignment Sample on Book Review Guidance
A. Historical production of coffee
Coffee is recognised to be the second most traded commodity in the world and it has been found that coffee was used in the 16th century in the Middle East in the context of aiding concentration. In addition to this, it has been observed that the process of cultivation, raising and cultivation from bean to cup. As per the statement of Luttinger and Dicum (2006), coffee is known to be a flowering plant that is being cultivated for its seeds called coffee beans. Besides, several coffee products including beverages are made from freshly grown coffee beans. Apart from these, the coffee plants are native to the tropical areas of South Africa and Asia continent. Coffee was basically introduced in the year of 1936 in India and coffee is considered to be a popular commodity. It plays a major role in the economy of Work for growth. On the other hand, Brazil occupies the number one effective position.
The coffee berries generally contain beans that are split in two and it has been observed that in around 5% of the beans harvested that can happen and that a bean does not split. In modern days, the growth of coffee is increasing. The process is also better in comparison to the previous days; the berries are harvested typically by a machine as well as picked by hand. In the context of getting the beans out, the needed fruit of the berry requires to be removed and after this thing, beans are required to be processed (Hashemian et al. 2019). Wet processing is considered to be the new method in comparison to the dry process that is known to be the oldest method. The new process generally consists of fermentation and washing and during this kind of process the pulp is left on the required beans.
B. Market structures
The coffee industry is basically built upon an intricate web of huge economic relationships as well as transactions. The majority of the trade of the global coffee is supplied by Brazil, so any change in the case of the supply chain has a monumental global effect on the prices of global coffee as well as industry. It can be said that coffee is recognised to be an extremely significant commodity that has created a cycle of underpayment and debt in the countries that are producing coffee. As per the statement of Quiñones-Ruiz (2020), the coffee industry is divided into three segments that are the roasters, growers and retailers. These are recognised to be the influencing factors that have the ability in controlling the simple cup of coffee that is enjoyed by people every day. The market of the coffee industry is known to be the perfect competition structure that has many sellers in the context of assuring that the decision of a single seller has no impact on the price of the market.
The products of the seller are effectively identical to the competitors of the business and the firms are price takers. In this case, an individual firm should accept the price of the market and it can exert no influence on the price. In addition, in this type of market, there is free entry and exit as there are no imprint barriers that prevent the forms from leaving and entertaining into the industry. As per the opinion of Vu et al. (2022), there are several factors that are also affecting the demand of coffee sync as access, health, access, interest rates and change in tax. Therefore, it can be easily said that in the present day, income and price are effectively increasing which affects the market condition of the business. Apart from these, the recent changes in the climate due to the cause of global warming, it is predicted that it has a large impact on the coffee industry. Coffee preparation is recognised to be the process of turning coffee beans into a beverage and coffee is basically brewed immediately before the time of drinking. It has been found that coffee may be effectively purchased already roasted and unprocessed and already roasted in the ground.
Figure 1: Selected leading coffee shops chains in the United Kingdom
(Source: Statista.com, 2021)
The structure of the coffee chain consists of customers, retailers, processors and domestic trades and small scale farmers in which farmers are mainly known as the smallholders and the coffee traders that have been recognised are Neumann (Germany), Volcafe (Germany), Decorate and Taloca. It has been found that in the year 2021, Costa coffee ranked highest among the successful and leading coffee shop chains in the United Kingdom with 2681 outlets. On the other hand, Starbucks and Greggs ranked third and second respectively 1025 and 2078 and the annual turnover of Costa Coffee is 880.59 million British Pounds in the year 2019 (Statista.com, 2021). Therefore it can be said that Costa Coffee shops is doing its business in the UK market effectively in comparison to its competitors.
Figure 2: The Coffee Commodity Chain
(Source: Talbot, 1997)
C. Coffee dollars
A commodity chain approach is recognised to be the most appropriate and effective method in the context of addressing the question that has been provided in the article. It has been found that the role of the TNC market should be considered to be the factor that can affect the distribution of incomes. On the other hand, the second change in the world market that could have influenced the division of required income was in the governing of regulatory Regime the world market. As per the opinion of Talbot (1997), the year of 1986 to 1987 shifts of income from the producers to the consumers is not effective and footing for this kind of past. Apart from these, the other two types of changes were fluctuation in the world production of coffee and the price fluctuation. The tendency of high prices effectively encourages new planting and it is required to maintain the price as well as reduce the maintenance price. It can be said that the total income made along the commodity of the coffee chain is recognised to be equal to the total price or amount of the money that is spent by the customers. The total surplus along the chain is effective and appropriate for the coffee growers.
Reference list
Hashemian, M., Sinha, R., Murphy, G., Weinstein, S.J., Liao, L.M., Freedman, N.D., Abnet, C.C., Albanes, D. and Loftfield, E., 2019. Coffee and tea drinking and risk of cancer of the urinary tract in male smokers. Annals of epidemiology, 34, pp.33-39.
Luttinger, N. and Dicum, G., 2006. The coffee book: Anatomy of an industry from crop to the last drop. The New Press.
Quiñones-Ruiz, X.F., 2020. The Diverging Understandings of Quality by Coffee Chain Actors—Insights from Colombian Producers and Austrian Roasters. Sustainability, 12(15), p.6137.
Statista.com, 2021. Selected leading coffee shop chains in the UK 2021, by units. Available at: https://www.statista.com/statistics/297863/leading-coffee-shop-chains-in-the-united-kingdom-uk-store-number/ [Accessed on 1st January 2021].
Talbot, J.M., 1997. Where does your coffee dollar go?: The division of income and surplus along the coffee commodity chain. Studies in comparative international development, 32(1), pp.56-91.
Vu, T., Nguyen, D., Luong, T., Nguyen, T. and Doan, T., 2022. The impact of supply chain financing on SMEs performance in Global supply chain. Uncertain Supply Chain Management, 10(1), pp.255-270.
