DUBLIN--(BUSINESS WIRE)--The "Coffee Value Chain Analysis - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" report has been added to ResearchAndMarkets.com's offering.
The global production of coffee is projected to grow at a CAGR of 4.0 % during the forecast period (2022-2027).
The COVID-19 pandemic has impacted the coffee trade across the globe. Europe and other developed nations were not able to do imports, due to the trade restrictions by nations. Vietnam which is the second-largest producer in the world whose coffee exports and consumption in the 2019-2020 period have taken a hit due to the impact of COVID-19. According to the Vietnam Coffee - Cocoa Association, export turnover of processed coffee products also dropped by 8.7% in 2020.
The coffee industry witnesses various issues from farms to markets like poor labour practices combined with unfair wages, deforestation, air pollution from roasting plants, and irregular pricing of coffee. To combat all these issues, a combined platform called SAI (Sustainable Agriculture Information) was implemented by Nestle, Unilever, and Danone to support the development and implementation of sustainable agriculture practices involving different stakeholders along the food chain.
Key Market Trends
Analysing Farmers and Cooperatives in the Value Chain
As per the data cited by CONAB (Companhia Nacional de Abastecimento, National Company for Food Supply), Brazil accounted for 2.1 million hectares of coffee plantations in 2019. The country witnessed a dip in the cultivation area year-on-year in the past decade.
However, improved methods of cultivation technology and improved supply chains elevated the production levels over the years, maintaining the country on top of all the coffee-producing nations in the world. It has been estimated that in Brazil, 20.0% of the Arabica coffee production is supplied through cooperatives and grower associations and the rest are procured by local traders, who further sell the coffee bags to exporters and local roasters. There is significant opportunity for grower associations to add value to coffee and supply directly to exporters through proper access to markets.
Price Markups in the Value Chain
The expenses in the value chain include labour, fertilizer, inspections, certifications (Organic, Rainforest Alliance, Fair Trade), transportation, and membership fees (if the producer is part of any cooperative organization). While the costs incurred by farmers are relatively easy to identify, they can vary easily based on the size and location of the farm and the type of coffee the farmer is producing.
Once the coffee has been harvested, processed, and transferred to exporters who in turn send it to importers, it goes to the roaster. Roasters take on the actual cost of coffee the agreed-upon purchase price per pound negotiated with the contract holder, as well as other price addition such as import and export charges and transportation. Cafes are the final destination on the value chain. Most of these coffees are reasonably priced, premium coffees have become increasingly scarce and expensive.
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 SUPPLY CHAIN ANALYSIS
4.1 Detailed Supply Chain Structure
4.2 Issues in the Supply Chain
5 VALUE CHAIN ANALYSIS
5.1 Detailed Value Chain Structure
5.2 Issues in the Value Chain
6 MARKET OPPORTUNITIES AND FUTURE TRENDS
7 AN ASSESSMENT OF COVID-19 IMPACT ON THE MARKET
For more information about this report visit https://www.researchandmarkets.com/r/8x61kb
