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sustainable supply chains
in the global coffee industry
Ethical Trade in the Global Coffee Industry:
‘The efficiency of Peter Griffiths’ idea for ‘ethical
consumerism’ is demonstrated through the case of ‘the
Earth Friendly Coffee Company’’
Can alternative trade relations produce increased
economic outcomes for agricultural coffee producers?
Links with ‘Social Innovation’ pathway
Design as conceptual & organisational to bring about
social change & generate both social and economic
value for agricultural coffee producers (with other
beneficiaries)
Promotes social development- within markets, social
enterprise and micro-businesses
International Coffee Organisation [2012] coffee remains the
most widely traded tropical agricultural commodity- 2010 –
$15.4 billion industry with 93.4 million bags per year
• Coffee crisis vs coffee boom
• South facing lowest prices in almost a century
• North- increases in value of coffee based
products- not consumption (paying more for
symbolic value and service related attributes
(branding, consumption ambience and packages)
Retail Price € 1.57 100 %
VAT (6% in the Netherlands) € 0.09 5,73 %
Margin distribution, costs of
roasting, storage, (sea-) transport,
financing, margin roaster and
importer
€ 1.20 76.43 %
FOB price € 0.28 17.84 %
Structure purchasing coffee (FOB)
Export taxes and other fees € 0.01 0.64 %
Costs of processing, financing,
transport, bags and other trading
expenditures, including trade margin
€ 0.17 10.83 %
(Gross) income producer
organisation
€0.10 6.37 %
Peter Griffiths
marketing economist, international consultant, speaker
Peter Griffiths "The Economist's Tale" inspirational motivational professional speaker
Why Fairtrade isn't Fair
1. Efficiencies in market systems
2. Efficiencies in equipment
3. Access to competitive export markets
Earth Friendly Coffee Company – Guatemala
50% retained by producers- clear audit trail
Processing, roasting, packing and exporting increases
income- not selling a raw material
‘Single issue you got action’ (Peter Griffiths)
Community benefits: realistic labour migration /
investment potential
Clear messaging on packages- not the fair trade
premium for producers
Introduction to the coffee sector and why the commodity is deemed ‘special’.
(God in a cup)
Sustainable development as a prerequisite for the paper
Literature review- critically analysed key theoretical perspectives on sustainable
agricultural practices
Ethics – ethical trading
Counterproductive international agricultural policy & trade barriers (current EU
subsidies / historical context)
Commodity fetishism (capitalism) and the limits of ethical consumerism
Other types of business models in ethical trade
Research methodology
My dissertation also covered areas such as:

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Adding value to global supply chains

  • 1. sustainable supply chains in the global coffee industry Ethical Trade in the Global Coffee Industry: ‘The efficiency of Peter Griffiths’ idea for ‘ethical consumerism’ is demonstrated through the case of ‘the Earth Friendly Coffee Company’’
  • 2. Can alternative trade relations produce increased economic outcomes for agricultural coffee producers? Links with ‘Social Innovation’ pathway Design as conceptual & organisational to bring about social change & generate both social and economic value for agricultural coffee producers (with other beneficiaries) Promotes social development- within markets, social enterprise and micro-businesses
  • 3. International Coffee Organisation [2012] coffee remains the most widely traded tropical agricultural commodity- 2010 – $15.4 billion industry with 93.4 million bags per year • Coffee crisis vs coffee boom • South facing lowest prices in almost a century • North- increases in value of coffee based products- not consumption (paying more for symbolic value and service related attributes (branding, consumption ambience and packages)
  • 4. Retail Price € 1.57 100 % VAT (6% in the Netherlands) € 0.09 5,73 % Margin distribution, costs of roasting, storage, (sea-) transport, financing, margin roaster and importer € 1.20 76.43 % FOB price € 0.28 17.84 % Structure purchasing coffee (FOB) Export taxes and other fees € 0.01 0.64 % Costs of processing, financing, transport, bags and other trading expenditures, including trade margin € 0.17 10.83 % (Gross) income producer organisation €0.10 6.37 %
  • 5. Peter Griffiths marketing economist, international consultant, speaker Peter Griffiths "The Economist's Tale" inspirational motivational professional speaker Why Fairtrade isn't Fair 1. Efficiencies in market systems 2. Efficiencies in equipment 3. Access to competitive export markets
  • 6. Earth Friendly Coffee Company – Guatemala 50% retained by producers- clear audit trail Processing, roasting, packing and exporting increases income- not selling a raw material ‘Single issue you got action’ (Peter Griffiths) Community benefits: realistic labour migration / investment potential Clear messaging on packages- not the fair trade premium for producers
  • 7. Introduction to the coffee sector and why the commodity is deemed ‘special’. (God in a cup) Sustainable development as a prerequisite for the paper Literature review- critically analysed key theoretical perspectives on sustainable agricultural practices Ethics – ethical trading Counterproductive international agricultural policy & trade barriers (current EU subsidies / historical context) Commodity fetishism (capitalism) and the limits of ethical consumerism Other types of business models in ethical trade Research methodology My dissertation also covered areas such as: