The Coffee Connection

The coffee connection

From Cherry to Cup

In 800 A.D., goats were the first to experience coffee when shepherds noticed that they appeared to “dance” after having eaten coffee berries. From then on coffee started energizing the world with the first coffee house opening in 1415 in Istanbul. Today, over 2.25 billion cups of coffee are consumed every day across the world. With this high rate of consumption and the average coffee drinker’s dependence on coffee, it is no surprise that coffee is the second most traded commodity in the world.

In 2016, approximately 155 million bags of coffee were sold worldwide, with emerging markets like South Africa seeing a rise in coffee consumption. The every rising demand for coffee has resulted in a complex supply chain with many key players connecting at different points along the chain. Starting with farmers then various intermediaries, millers, roasters, logistics companies, retailers and finally the consumer. The connections need to be efficiently managed to ensure that the supply chain delivers coffee to the right place, at the right time, in the right condition and at the right price.

With growth in emerging markets and practices like ‘Fair Trade’ in which consumers are becoming more aware of their impact on sustainable and fair practices in the coffee industry, this industry is likely to continue to evolve. These changes are likely to bring more complexity to the supply chains that support the industry, but at the end of the day, it is about making sure that coffee is available for 2.25 billion cups.

The coffee connection

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Sources:

https://financesonline.com/heres-how-you-make-coffee-a-billion-dollar-business/

https://www.statista.com/topics/1670/coffeehouse-chain-market/

http://www.streetdirectory.com/food_editorials/beverages/coffee/coffee_consumption_around_the_world.html

https://mg.co.za/article/2016-08-09-00-emerging-markets-have-seen-a-boom-in-coffee-consumption-but-has-sa-hit-its-peak