The Global Impact of Coffee on Economies and Cultures

Coffee is an important part of our history and will be part of our future. The demand for coffee production has increased, and the importation of coffee is #2 after petroleum.

Historical Perspective

Since the 15th century, coffee has had a great significance in the Ethiopian culture and economically. It has its roots in religion and has been part of important events such as weddings, births, and funerals. Many historians think that Ethiopia is where coffee first originated.

In the 1800s traders began exporting coffee from Ethiopia to other areas and by the 1900s over 500 exporters were shipping over one million bags of coffee each year.

Coffee's journey via trade routes to Europe, Asia, and the Americas. The cultivation of coffee first began on the Arabian Peninsula, from there, it spread to Persia, Egypt, Syria, and then Turkey. European travelers then brought coffee to Europe around the 17th century. Soon coffee houses were popping up all over London. By the 1600s coffee made it over to the New World, and became a new favorite beverage following the Boston Tea Party.

China was introduced to Coffee in the late 1800s when a French missionary brought it to the Yunnan area. However, it wasn’t until 1988 that the country realized they could grow coffee in their own country. Today, China is the 30th largest producer of coffee.

Coffee and Global Economies

Coffee not only helps wake us up each morning, it is a huge industry. Thanks to many of the coffee shops that appear to be on just about every corner, in the U.S. the coffee industry was responsible for $343.2 billion, an increase of 52.4% from 2015.

According to NCAUSA.org, the economic impact of coffee is important to the U.S. and those who work in the industry. Coffee has a strong hold on the economy in the U.S. and beyond. It is a top-selling beverage and has made its way into society today. Exporting coffee is a $20 billion industry, which is rising.

The Coffee Trade and the Jobs it Creates

The coffee trade morphed over the years and has grown by huge numbers. That growth has led to 2.2 million jobs in the U.S., representing $100 in wages. Coffee trade fluctuates due to numerous factors starting with things we cannot control like climate change and economic fluctuations. While some have expressed concern that the coffee supply chain is so vast, that it is often hard to determine the origin of the beans.

According to the Fair Trade Foundation, more than 125 million people work in the coffee trade. About 25 million smallholder farms are producing 80% of the coffee consumed around the world. Fair Trade farmers produced roughly 560,900 tons of coffee per year, which equals 58.9 million espressos.

If you ever wondered about the importance of the coffee industry, look at these statistics from the National Coffee Association (NCA):

• In 2015, consumers spent 225.2 billion on coffee.In 2015, coffee drinkers spent a whopping $74.2 billion on coffee.
• The coffee industry is responsible for 1.7 million jobs in the U.S.
• The coffee industry generates $28 billion in taxes.
• Coffee is not just an important commodity in the U.S., its impact and growth is felt around the world.

According to Weforum.org, coffee is a key trade product for these prolific coffee-growing regions:

• Brazil: 37% market share
• Vietnam: 17%
• Columbia 8.%
• Indonesia: 7%
• Ethiopia: 4%
• Honduras, India, and Uganda: 3%
• Mexico and Peru: 2%

Challenges Experienced by the Coffee Sector:

Being a coffee farmer can be a challenging one and one that can either sustain a lifestyle or ruin one, according to PerfectDailyGrind.com. Nothing is certain until the coffee is in the bag.

Here are some of the ongoing challenges that the coffee market experiences:

• Pests, diseases, and fungi are an ongoing issue. Coffee leave rust has ruined coffee crops for over a century. The latest infestation of coffee leave rust occurred in Central America in 2012 and caused over $1 billion in ruined crops. The coffee berry borer beetle is found in the immature coffee bean where it lays eggs ruining the crop. Other pests include green coffee scales, mealybugs, termites, and mites.
• Climate change has become a big concern and is a huge challenge that is difficult to plan for. Rising temperatures and different rainfall patterns have created Arabica coffee, especially at risk. This blend is sensitive to temperature changes. High temps retard growth and reduce yield.
• Inclement weather such as strong rains during harvest can have a detrimental effect on coffee harvesting and production as coffee needs time to dry out with direct sunlight during harvesting.
• Labor shortages are one of the biggest challenges coffee producers face. Workers are needed at every stage of the growing process. Coffee pickers are paid based on the weight of the beans they collect. It is a difficult job and many move on to more reliable, ongoing work instead of seasonal.
• Price fluctuations make incomes for those in the coffee industry unreliable. Price is affected by numerous situations, including the NY Commodity Exchange. Weather, climate change and other factors like production and shipping costs all impact the products' price.

Coffee and Culture:

Coffee has become an important part of our society and culture. Why have an office where you can meet at Starbucks? Why make coffee at home when there is a coffee shop on every corner? Home internet went out, go to your favorite coffee shop. Where would we be without our reliable coffee shop to help us out in a bind and be our new home away from home?

Coffeehouses and Intellectual Movements:

After the Boston Tea Party, Americans began drinking more coffee. It was already popular in Europe where expatriate writers like T.S. Elliot, F. Scott Fitzgerald, and Ernest Hemingway gathered in Parisian coffee houses to discuss their latest works and the state of the world.

In the 17th and 18th centuries, London and other key European cities, and coffeehouses sprouted up hosting many leaders of the day. These gatherings helped drive the Age of Reason or “The Enlightenment.” It was a time when leaders would gather to discuss their intellectual theories, new ideas, political motivations, and daily problems.

The popularity of European coffee houses made its way to the U.S. and around the world. In the New World, tea was the drink of choice, but after the Boston Tea Party that changed. After the Revolutionary War, tea was hard to get and the quality was poor, this began the shift to coffee.

In the 1950s, coffeehouses sprung up all over, they were places where people could perform, and share ideas. Alfred Peet was also an innovator when it came to coffee. He opened up a shop in Berkeley, CA, and introduced coffee drinkers to new types of coffee from different regions, according to Sagebrushcoffee.com. This was the beginning of the café culture worldwide. Today, coffee houses can be found on just about any city corner.

The Ceremonial Importance of Coffee:

Just like Chinese Tea Services, many cultures celebrate coffee and have specific rituals that involve the making and drinking of coffee: Here are some of them:

• Ethiopian coffee ceremonies: The ceremony includes three stages. The first is roasting the coffee, then brewing, and then pouring cups for the guests. During the process, the host is responsible for the entire process, which is done in front of honored guests.
• Turkish coffee ground readings: A popular tradition in Turkey is to read the coffee drinkers' coffee grounds. After drinking the coffee, the cup is turned over and a ground reader will then tell the fortune resulting from the grounds.

What is the Modern Coffee Culture?

Coffee is very important to today’s culture. Coffee houses attract people from all walks of life. While many go to bars to gather, those that don’t drink were left out, until the burgeoning business of coffee houses changed all that.

Traditions are made, and social behaviors surround the drinking of coffee. In the late 20th century espresso became part of the coffee culture. Today, there are more coffee drinks than ever before, and there is no end in sight…this started the third wave of coffee trends.

The third wave of coffee describes the transitional consumption of coffee. It includes elevating coffee shops to serve single-origin coffee, pour-overs, and espresso. The third wave of coffee brought on elevating coffee, its preparation, and the type of beans used, with an eye to how the beans were cultivated and grown. It led the way for more specialty coffees, which continue to thrive.

Today, coffee plays an important role in contemporary social settings, work environments, and daily rituals. Each morning many people start their day with a cup of coffee that was programmed to brew and be ready when needed.

Going to a coffee shop is now like going to a bar in the past. People gather here, have meetings here, and consider their local coffee shop as a place to meet people. In work situations, most companies have a break room where workers can take a break, gather with colleagues, and enjoy a cup of coffee together.

Social and Ethical Considerations:

While we enjoy our coffee each day, there are several social and ethical challenges within the coffee industry.

Fair Trade and ethical sourcing are just two of the issues that many are concerned with.

Fair Trade: When you buy Fair Trade coffee, it means that the beans are grown with unparalleled standards that support farmers and their communities, while protecting the environment. It means that the coffee has been sourced from top-quality growers that practice fair trade. Many only purchase coffee that wears the Fair Trade sticker on their packages.

Impact on Communities: Many areas that were previously poor now are thriving because the local community is involved in the growing, harvesting, and roasting of coffee beans. It has had a positive impact on local communities that welcome growers and bring jobs.

Environmental Concerns: One of the biggest concerns most people have is the impact that growing coffee may have on the environment. Many feel that coffee growing, production, and consumption negatively impact the planet.

Coffee needs high elevations and tropical or subtropical environments to grow. They also need protection from the sun from trees.

Here are some of the concerns:

• Water Contamination: Chemicals used in coffee production can get into waterways, which can affect the growth of fish and other animals and plants.
• Soil Damage: When coffee methods are abandoned, it can cause soil erosion, not just for the coffee plantation, but for the soil around the area.
• Deforestation: In the 1970s the demand for coffee was accelerating, and many farmers started to plant sun-grown coffee. Trees were cleared, causing deforestation. This reduced plant life and took away the habitat of birds, animals, and insects.
• Chemicals: Sun-grown coffee draws pests, so insecticides are used to combat these insects, but that means the chemicals can end up in the soil and waterways.
• Waste: This is a big issue, especially with the Plastic K-cups used for single-cup coffee makers. These are now making their way into landfills along with coffee filters, and disposable serving cups.

Because of these hazards to our environment, many people are doing their research and choosing coffee makers that practice Fair Trade and sustainable practices.

The Rise in Coffee Consumption:

There has been a big increase in coffee consumption year-over-year. In 2022, a study was conducted by the National Coffee Association, which found that coffee drinking had reached a 20-year high. In addition, 43% of those surveyed had drunk a specialty beverage in the past 24 hours. This is a 20% increase from the previous year.

More and more specialty coffee shops are opening, and global franchises can be found across the world. More and more people are trying new blends, nitro coffee, cold brew, pour-over, iced coffee, flavored coffee, and more.

This has led many people to become a home baristas, buying special gadgets and new coffee makers that can scald milk and make a variety of specialty coffees at home.

Summary

We know that many cultures rely on coffee production and the jobs they bring. More and more consumers, however, are looking to only buy sustainably-sourced coffee knowing that it is not hazardous to the environment.

Coffee has played an important role in our daily lives for centuries. Today there is more access to a variety of coffees that weren’t previously available, and there doesn’t seem to be any reason for this demand not to continue.