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Coffee industry Essay

Coffee industry is next only to petroleum industry in terms of business done across the world. About twenty million people are employed in coffee industry and every year over 400 billion cups of coffee are consumed across the world. To meet the challenges of different taste buds, a variety of production techniques have evolved in the last decade in coffee production. Organic coffee is one where no chemicals are used in the coffee plantations to boost production and the coffee plants are planted in shaded areas.

Fair coffee is where the coffee plants are planted entirely under a canopy of trees and the berries are completely protected from the sun. These too use little or no pesticides. Differentiated coffees are those that can be identified by their well-defined origin, different processes, or outstanding characteristics such as superior taste. They are often directly sold to a roaster or a buyer and are not commonly traded through conventional channels. In contrast, mainstream coffees are the pre-blended types whose origins are not identifiable.

They are traded in bulk and are distributed through supermarkets and other conventional channels and they are competitive in terms of pricing. To differentiate between different types of coffee that exist in

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the market, grading and certification are done. A large grading facility called the New York Board of Trade in Manhattan grades coffee. There are five classes of coffee, where class one is specialty coffee and class five is poor quality coffee. Depending upon the class, the prices vary from a premium rate to a discounted price.

The United States is one of the largest importers of coffee from across the world; however, the per capita consumption of coffee by its population is much less when compared to other countries. Studies that focus on coffee report that coffee consumption in the United States has especially declined from the year 1970 through 1999. The per capita consumption of coffee was 33. 4 gallons in 1970 in the United States. It dropped to 26. 7 gallons in 1980. In 1970, 74. 7% of the U. S. population was drinking coffee and in 1980 only 56. 6% was drinking coffee. What could be the reason for this trend?

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