Coffee is a worldwide commodity. This means that it is a raw material that is bought and sold on world markets. Coffee is produced by processing coffee beans. These coffee beans grow in many developing countries such as Colombia, Brazil, Uganda, Kenya and the Ivory Coast. Over 20 million people are employed in the coffee industry.
DID YOU KNOW? Coffee is the second most traded commodity in the world. Can you guess what the most traded commodity is?
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: Figure 20.10 Coffee-producing countries of the world How coffee is grown
Plantations: Coffee plantations are large areas of land where coffee beans are produced. They are often owned by foreign companies who pay very low wages to the workers.
Local farms: In some countries, local farmers also produce coffee beans as a cash crop.
Exploitation of coffee-producing nations Price
Companies pay very little to farmers for their coffee beans. They then process these beans into coffee in their own countries and sell it at a large profit. Therefore, the farmers do not get a fair price for their product.
: Figure 20.11 Coffee production in Uganda Cash crop:
an agricultural crop that is grown for profit, instead of for use by the grower.
