This article was first published on Ambrosus - Medium
As one of the most highly valued commodities in the world, coffee has a current market export estimated around $19 billion US Dollars per year. In such a market there is demand for a model that makes sure that everything and everyone in the Coffee supply chain is treated fairly: herein lies the problem for blockchain.
Whether you like the smell and taste of coffee or not, it is undeniable to say that coffee is one of the most important commodities in the world. The coffee industry is growing at a significantly high pace with a compound annual growth rate of 5.5% (2020–2025). While the consumption is almost exclusively by developed countries, its production is performed by the poorest countries.
Millions of farmers rely on the coffee industry, but no farmer determines the price at the end of the supply chain. For example, if a roaster decides to increase his price on a wholesale coffee, the retailer has the option to raise menu prices. A similar option is available to the roaster, if the importer says that he is increasing his price: the roaster can raise prices for the wholesale customer. Such a privilege is not given to the farmer since they have little to no options to cope with these higher prices. This is only one side of the issue.
Coffee Industry Fast Facts
These are highlights according to SCAA 2014 Economics of the Coffee Supply Chain report:
- The total economic impact of the coffee industry in the United States in 2015 was $225.2 billion USD.
- Coffee-related economic activity comprises approximately 1.6% of the total U.S. gross domestic product.
- Consumers spent $74.2 billion on coffee in 2015.
- The coffee industry is responsible for 1,694,710 jobs in the US economy.
- The coffee industry generates nearly $28 billion in taxes (including ancillary ...
To keep reading, please go to the original article at:
Ambrosus - Medium