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: