The Coffee Industry in the United States

Topic: Coffee Words: 2302 Pages: 8

Abstract

It has become challenging to produce large amounts of coffee in the United States due to climate change brought on by industrialization and high labor expenses. This article explores the study and will interrogate the problems faced by Americans working in the coffee industry. Consequently, suggested recommendations for improving employment conditions will be crucial to the coffee industry. However, it will be discovered that farmers are less incline to use particular adaptations when they connect events to elevate danger.

Transformation results from irrelevant limitations upon judgment than perceived because responses are much more strongly related to access to resources than the perception of risk. Farmers may use techniques that raise expenses, but the greater yields and prices do not justify the increased costs. Further investigation might reveal instances when coffee growers are earning high equivalent daily salaries and positive net benefits from their operations, as well as what makes those farmers distinct.

Introduction

Thanks to its technology and agricultural output, the U.S. economy is recognized as one of the most successful in the world. However, unlike many other nations, the U.S. economy depends more on the service sector than agricultural output. Coffee is a crop with several industrial applications (Rhiney et al.). Some businesses use the substance to flavor beverages, while others use it to produce beverages. Additionally, the commodity has a substantial economic impact on the United States since many Americans work in coffee fields, processing facilities, and fast-food restaurants like Starbucks. It is challenging to produce more coffee in the United States due to rapid climate change and severe labor circumstances.

Government and non – governmental initiatives have sought to revitalize the coffee sector as it has struggled to keep up in the U.S. in recent years. To restore 135,000 hectares of coffee crops, the Ecuadorian Ministry of Agriculture and Livestock (MAGAP) committed $70 million to the “Reactivation of the U.S. Coffee Cultivation Project” in 2015 (Rhiney et al.). The political economics of the U.S. economic development may be partly to blame for the high costs of coffee production there. Due to these rules, labor and agricultural input prices have increased, raising the price of coffee manufacturing in the U.S. today (Ross and Welsh 193). In addition to economic difficulties, the U.S. coffee industry also suffers agronomic difficulties. Investigating the issues affecting the U.S. coffee business is crucial for the nation and other interested parties and must be researched deeply. This report discusses the issues affecting coffee farmers in the U.S. and analyzes the effects’ impact.

Research Questions

The coffee industry is multifaceted since it involves producing, processing, and selling the final products to consumers. Therefore, the study will be guided by a set of questions that will interrogate the factors contributing to decreased coffee production but increased sales in the U.S. The main research question for the study is: what economic, social, and political factors contribute to low levels of coffee production in the U.S.? The stud is focused on the economic, social, and political factors since they impact any business. However, the sub-questions guiding this research include the following:

How has the U.S. government failed to support coffee production in the U.S.?
What are beverage companies’ corporate social responsibilities in promoting local coffee production in the U.S.?
What are the social problems faced by coffee farmers and workers in the U.S.?

Research Objectives

The research study has various purposes crucial for U.S. policymakers and the economy. The research seeks to determine social, economic, and political factors that affect coffee production in the country. Policymakers and coffee companies can utilize the factors identified to improve the production of coffee. The study will interrogate the problems faced by Americans working in the coffee industry. Moreover, the study aims to explore existing literature on U.S. coffee production and the consequent problems faced. Consequently, suggested recommendations on improving employment conditions will be crucial to coffee industry employees.

Critical Literature

CSR’s Role in the Production of Coffee

For many years, the idea of corporate social responsibility (CSR) has been significant. Since that time, it has steadily evolved into a common commercial practice. The huge stream of conceptual and practical advancements has allowed CSR to develop and broaden its reach to include the entire world. Undoubtedly, the concept of CSR has become one of the accepted corporate practices in the modern day (Fariss 100). In the pessimistic business environment of today, firms participating in CSR intend to safeguard their economic well-being and general credibility. This view has been confirmed.

U.S. Coffee Production

The Coffee Production sector has faced challenges from quickly changing commodity costs and altering customer tastes throughout the five years leading up to 2022. The industry has attempted to strike a balance to accommodate customer demand for new trends while protecting against the many factors that influence the price of coffee beans, such as dollar fluctuations, shifts in demand, and climatic circumstances (Fariss 109). An already volatile business has suffered from an overvalued U.S. currency for some recent time. The top coffee importer in the world, the United States will meet 43.9% of industry demand through imports in 2022 (Paseto 159). This was anticipated before the country started experiencing adverse weather changes that affected coffee production immensely.

Failure of the U.S. Coffee Industry

Many individuals get at least a portion of their work and income from growing coffee. When there is a coffee industry crisis, coffee producers and the financial firms that provide loans are traditionally the centers of attention (Bianco). Notably, the emphasis has been on large- and medium-sized coffee farmers with unpaid debts. However, the extensive negative effects on small coffee farmers, seasonal and full-time coffee workers, and others tied to operations in the coffee industry and coffee-related earnings and expenses have come to light in the present coffee crisis (Bianco). Because several negative shocks have coincided and worsened one another, it is relatively challenging to separate the socio-economic effects of the coffee crisis on U.S.

Summary of Literature Review

By examining the significance of coffee in different coffee-producing nations worldwide and the significance of U.S. coffee output, problems, and mitigation strategies in the U.S., the relevance of coffee growth internationally is examined. A review of relevant research has been done on the study’s independent variables, such as the effect of social factors, the implementation of coffee production technology, cooperative management, coffee value addition, and the roles of important players in U.S. coffee production. The section ends with a description of the study’s conceptual and theoretical context.

Methodology

Research Approach and Design

The three categories of research techniques include qualitative, quantitative, and hybrid methods. A qualitative technique was inappropriate because the study would not need statistical data or precise numbers. Quantitative and qualitative data collection, processing, and interpretation procedures are combined in mixed methods research. The research study will employ a qualitative strategy because the mixed-method and statistical approaches are inappropriate for the inquiry. The purpose of this chapter is to walk the readers through the study on which the thesis is founded through literature review analysis. The primary driver is a desire to learn more about coffee production and the certification realm. The main research will be a descriptive study. It was picked because it frequently finds, explains, and describes correlations between variables pertinent to the studied population. The research’s objective is to review the literature on coffee production in the United States and the resulting issues.

Findings and Discussion

Due to their conviction that CSR is crucial to establishing and preserving their brand, the U.S. coffee industry is now known for considering CSR program business decisions. Since CSR initiatives give businesses a chance to win over customers, they have evolved into a strategic marketing strategy for reducing the gap between them and their clients (Paseto 160). The many CSR efforts undertaken significantly affect the growth of coffee production and manufacturing reputation. These actions have been successfully carried out through a marketing strategy (Zhou et al. 2). The community gains a lot when these events are conducted. Customers are aware of and react differently to such CSR initiatives when they are executed. For instance, reputation will be favorably impacted if these acts are viewed as ethically and socially acceptable, and vice versa.

Several authors and studies report well on modern methods of coffee farming. Carter et al. claim that automatic coffee harvesting cuts harvest costs by 30% on aggregate compared to hand harvesting. As it is not economically feasible to distinguish between the “cherry coffee” (ripe fruit) and the “fresh fruit,” it is important to remember that mechanized harvesting increases the quality of produced coffee, as opposed to manual harvesting. In the cerrado, labor expenditures make up 40% of total costs, while pesticide and fertilizer prices make up 22% (Carter et al.). This implies that the cost of producing coffee is resource demanding than any other process involved.

Conclusion and recommendation

Studies on production costs in the coffee industry should be improved. They could utilize more uniform techniques for better comparisons between them and be more transparent about the subjective decisions made in their methodology. A more thorough accounting of coffee-related expenses, particularly those related to family work, administration, and establishment, might improve uniformity (Ortiz et al. 97). Additionally, studies should go beyond a narrow emphasis on immediate financial success and consider opportunity costs to small family farms and long-term economic viability.

Future work in development, policy, and research might assist in addressing some of these difficulties in the area. Farmers’ need for access to technical knowledge of appropriate management methods in coffee production was one gap found. The poor profitability of coffee production for these farmers calls for prudence in implementing this idea. Farmers may use techniques that raise expenses, but the greater yields and prices do not justify the increased costs. Further investigation might reveal instances when coffee growers are earning high equivalent daily salaries and positive net benefits from their operations, as well as what makes those farmers distinct.

Annotated Bibliography

Carter, David B., et al. “The Anatomy of Tragedy: Starbucks as a Politics of Displacement.” Accounting, Auditing & Accountability Journal, 2022. Web..

This study focused on rural U.S. properties, which are inherently compliant with the standards of good agricultural practices for quality, inventiveness, and technologies in producing and managing properties. Through a literature review on competitive spirit, understanding, and details as a differentiating factor for manufacturing to economic benefit, innovation, regional new tech, and innovation, we brought to light the same possibilities for enhancing competitiveness based on these factors.

Fariss, Nissrine. “Starbucks’ Dream of a Global Taste.” The Routledge Handbook of Digital Media and Globalization. 2021, pp. 100–10. Web.

Small farmers in the area are particularly sensitive to the effects of climate change, and it may be impossible to get out of this predicament without implementing social reform based on greater social equity and justice, which would require political will. This case serves as an example of the difficulties that must be overcome to eliminate the social injustices that impede small farming communities from minimizing their exposure to dangers linked to the climate or unrelated to the environment.

Ortiz, Andrea Monica D., et al. “A Review of the Interactions between Biodiversity, Agriculture, Climate Change, and International Trade: Research and Policy Priorities.” One Earth, vol. 4, no. 1. 2021, pp. 88–101. Web.

Despite playing a critical role in preserving productive agroecosystems, assessments of the effects of commercial commerce get a tendency to overlook biodiversity. To enhance trade discussions and lower the likelihood of unanticipated repercussions for significant biodiversity and those whose survival depends on it, advice regarding impact studies of diversity is needed. To emphasize the necessity for developing a biodiversity-inclusive approach for analyzing the impact of economic treaties and conventions, this study examines connections between biodiversity and trade and information relevant to the agriculture sector.

Rhiney, Kevon, et al. “Epidemics and the Future of Coffee Production.” Proceedings of the National Academy of Sciences, vol. 118, no. 27, 2021, p. e2023212118. Web.

The authors explain how the present COVID-19 affects employment, unemployment, remain orders; other international border rules may affect farmer investment in coffee plants and subsequently foster an environment receptive to surprises in the future. We conclude by stating that the economic effects of COVID-19 are likely to send the coffee sector into yet another dire production crisis. This argument shows the risks associated with a worldwide coffee system and the importance of safeguarding everyone’s well-being. We can develop an equitable and healthy ecosystem far more resistant to environmental and social disasters by boosting resources for coffee organizations or compensating smallholders more.

Ross, Jacqueline, and John Welsh. “Understanding the ‘Tipped Minimum Wage’: Critical Directions for U.S. Policy Research.” Social Policy and Society, vol. 20, no. 2, 2020, pp. 192–210. Web.

This article examines the policy study on the “tipped” workforce using tipping as an example. Tipping is a legally recognized type of labor compensation in the United States which internalizes connectedness and hierarchy, informalizes pay relations, and motivates precarious workers. Important social policy analysis must prioritize comprehending tipped activity, its legal validity, its operational rationality, and the tensions that develop within its framework.

Zhou, Rui, et al. “Coffee Supply Chain Planning under Climate Change.” Journal of Integrative Environmental Sciences, vol. 19, no. 1, 2022, pp. 1–15. Web.

In order to determine if the availability of Arabica coffee can satisfy U.S. needs between 2022 to 2050 and how to address any shortages using organizations and private effectively, this research utilized the model here to user study of Arabica coffee supplied to the U.S. market. The findings indicate that there will be a 3% deficit of coffee in the future; potential mitigating measures include medium-level shade control, increased irrigation, and fertilization. These findings show that everyone involved must embrace adequate technology to ensure the sustainability of international coffee supply networks.

Works Cited

Bianco, Gino B. “Climate Change Adaptation, Coffee, and Corporate Social Responsibility: Challenges and Opportunities.” International Journal of Corporate Social Responsibility, vol. 5, no. 1. 2020. Web.

Carter, David B., et al. “The Anatomy of Tragedy: Starbucks as a Politics of Displacement.” Accounting, Auditing & Accountability Journal, 2022. Web.

Fariss, Nissrine. “Starbucks’ Dream of a Global Taste.” The Routledge Handbook of Digital Media and Globalization. 2021, pp. 100–10. Web.

Ortiz, Andrea Monica D., et al. “A Review of the Interactions between Biodiversity, Agriculture, Climate Change, and International Trade: Research and Policy Priorities.” One Earth, vol. 4, no. 1. 2021, pp. 88–101. Web.

Paseto, Luísa, et al. “Coffee Production: An Analysis of Opportunities for Competitiveness.” International Journal of Advanced Engineering Research and Science, vol. 5, no. 8, 2018, pp. 152–61. Web.

Rhiney, Kevon, et al. “Epidemics and the Future of Coffee Production.” Proceedings of the National Academy of Sciences, vol. 118, no. 27, 2021. Web.

Zhou, Rui, et al. “Coffee Supply Chain Planning under Climate Change.” Journal of Integrative Environmental Sciences, vol. 19, no. 1, 2022, pp. 1–15. Web.