Global Systems and Global Governance 5

Coffee is grown in warm countries around the equator:

Coffee is grown close to the equator due to the hot climate. Coffee production is dominated by countries in South America, the Caribbean, Asia and Africa.

Biggest producers: Brazil, Vietnam, Colombia, Indonesia and Ethiopia.

Arabica coffee beans are of higher quality, but more expensive to produce than the robusta beans. Arabica is mainly grown in South America and eastern Africa, whereas robusta is grown in western Africa and Asia. 70% of the world's production is arabica.

The plants are grown in nurseries and the moved to farms where they produce the beans.

Issues in coffee production:

• Plants can be susceptible to diseases - prevents growth.
• Insects and other pests - destroy plants.
• Some weather conditions make outbreaks of disease and pests more likely.
• Farmers use fertilisers and pesticides, but these are often imported into the country, so can be expensive.

Coffee is traded globally:

Mainly produced by less developed countries and consumed by developed countries.

Brazil is the largest producer. In 2015, it exported 20% of the world's coffee. It has 300 farms and produces 2.5 million tones a year.

USA is the largest importer. In 2015, it imported 20% of the world's coffee. European countries, Japan, Canada and Russia also import a lot.

The price of coffee fluctuates depending on the supply and demand.

• If demand for coffee increases and the supply remains the same, then the global price will increase; more are competing to buy limited quanities.
• If supply increases and the demand remains the same, the global price will decrease; more coffee than whats needed.
• A low price…