Coffee provides livelihoods for at least 60 million people, across dozens of countries. Nov 12, 2018 a value chain analysis provides the companies with a view of the activities in their production process. Porters value chain analysis free management books. Starbucks inbound logistics and supply chain was subjected to a dramatic restructuring in 2010 after howard. For example, in rwanda alone, there are approximately 400,000 coffee farmers. Somo centre for research on multinational corporations this document is licensed under the creative commons attributionnoncommercialnoderivateworks 2. Trade in coffee is dominated by latin america and caribbean countries which account for about 57% of world exports while african countries account for about 14%, mainly of the robusta type.
The vegetables value chain in the philippines 38 illustration of principle 5. Possible interventions and support activities in the value chain limitations specialty coffee is not well defined, and each market and sometimes even each buyer has a slightly different. Value chain analysis for the coffee sector in rwanda. Value chain analysis for coffee in karnataka, india. India retail coffee chains market was valued at usd 128. Managers can find out which parts can be optimized for better performance. The qat subsector shows gradual and consistent growth in production volume and market demand. In business, we are paid to take the raw materials, turn them into something of worth to other people with the intention of adding value in it. In a value chain, coffee beans go through different process before it reaches the hands of a consumer.
Ensuring economic viability and sustainability of coffee. The qat chain is a showcase example of a demanddriven, wellcoordinated value chain. The value chain templates are easy to use and free. Identify opportunities to gain a competitive advantage. The value chain analysis of coffee includes four main phases. May 06, 2020 starbucks is one company that is interesting to analyze from a value chain perspective because of the substantial value added from coffee bean procurement to distribution and from store supply to. Value chain analysis of the coffee sector report undp in. Value chain analysis of the coffee sector report undp in uganda. The first phase in the coffee value chain encompasses the process from germination to production of coffee beans including the construction of nurseries, planting, maintenance and harvest ing of mature beans primary phase in the value chain.
Starbucks valuechain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. For every cup of coffee we drink, there is a story from crop to cup. Priority was given to nine objectives that are considered strategic leverage points for three different links in the chain. More importantly, it reflects the economic importance of downstream activities in the global value chain. The value chain analysis template below shows the very basic model of the porters value chain analysis process. Structure, governance and sustainability of the value chain element 3. A value chain analysis provides the companies with a view of the activities in their production process. The effective strategy implementation of these key players has contributed to the expansion of the global coffee market. The objective of this value chain analysis study is to conduct an indepth. Average consumption in selected importing countries 60kg bags average consumption1975. Starbucks as an example of the value chain model supply.
Introduced in 2006, the annual report allows us to better understand global genderbased disparities and measure the changes in. Figure 1 topics covered during the coffee conference. Value chain analysis of ethiopian coffee coffea arabica. Value chain analysis was undertaken from the collected data to identify the value chain affecting factors. Coffee value chain in selected importing countries denis seudieu, chief economist international coffee organization. Starbucks valuechain analysis research methodology.
However, if the situation is looked at from a different perspective, the answer to the question is different. The coffee industry has changed significantly over the last 10 years. Apr 06, 2017 starbucks value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. Coffee value chain study msu college of agriculture and natural. Coffee strategies is led by andrew hetzel, specialty coffee market, value chain and trade promotion expert. What can be considered a fair price is questionable, but the level of the. Value chain concept is a useful instrument for exercising how you can create the greatest possible value for your costumers. Learn about the coffee chain, and how coffee cherries the fruit of the coffee bush are turned into the coffee which is consumed in the uk learn how the profits are unfairly distributed along the coffee supply chain and think about why this is the case empathise with coffee farmers. The rice value chain in senegal 45 illustration of principle 7. In the united states, two main types of coffee are traded on the new. This report presents an assessment of the coffee value chain in yemen and proposes concrete short and mediumterm interventions to improve the livelihoods of rural coffee producers. In uganda, which is the 2nd largest exporter of coffee in africa, coffee is an important cash crop that supports over 3.
Sustainability indicators along the coffee value chain. This video features on how coffee is a high value crop. As you might have guessed, the value chain is a set of activities that will lead to the creation of value. Coffee value chain analysis and consulting from the experts.
Porters value chain analysis starbucks by yuta lolap on. The thesis is a study of the coffee market through the process of value addition, with importance given to small coffee producers aiming at their development. To better understand how the world is faring in achieving gender equity in general, lets look at results from the world economic forums global gender gap report. Coffee value chain analysis and consulting from the. Free value chain templates for word, powerpoint, pdf. Porters value chain analysis starbucks by yuta lolap on prezi. It also shows the difference of the prices of from the fresh berries from the green coffee beans. In 2002, oxfam interviewed peter and salome kafuluzi, who live on. Starbucks kathleen lee 4 value chain bean and ingredient selection product development product distribution storefront takehome products the above is the value chain for starbucks. Opportunities and obstacles in the value chain element 4.
Dec 27, 2017 patent data suggest that the most innovative value chain stages are those closer to the consumer, including the processing of beans and especially the final distribution of coffee products. The coffee value chain almost all of the coffee consumed in the united states is imported from abroad a very small amount of premium kona coffee is grown in hawaii. Coffee is a major agricultural export commodity of vietnam with the export value accounts for 3% of national gdp in 2014 and provides a livelihood for approximately 2. Increasing global exposure, western culture and penetration of established coffee brands are anticipated to be the key. A value chain analysis of fairtrade coffee lund university. A fair share for smallholders 9 coffee business, while farmers and exporters in coffeeexporting countries made losses or at best tiny margins. This video introduces small local enterprises that have taken simple, innovative steps to improve the coffee value chain in uganda. This article focuses on gender equity, specifically within the coffee value chain. In part, this reflects the short shelf life of roasted coffee, which implies that most of the roasting is done close to where the coffee is consumed. Porters value chain analysis is a tool that can be used to determine exactly how your company goes about the task of creating value.
Figure below illustrates the essence of value chain analysis. The raw coffee bean is very different from the roasted blend that ends up in your coffee cup, and incurs a number of costs along the distribution chain that the farmer has not borne. Competitive advantages differences among competitor value chains are a key source of competitive advantage porter, 1985 firm infrastructure used to increase efficiency and to cut costs computerized coffee roasters wifi in stores mobile. You will follow the chain of processes that connect the drink you enjoy on a daily basis with circuits of economic and cultural value, hearing from coffee farmers and consumers in different parts of the world. Starbucks value chain analysis 2014 john dudovskiy. A comparative analysis of the coffee value chain igc. Both qualitative and quantitative analysis tools like, pestec, swot, matrix, chain map, tables and problem tree were used to identify the possible constraints retarding the performance of the coffee value chain in the country. Sep 21, 2015 the complete coffee value chain was critically examined and discussed by leading experts in the field, culminating with an international perspective of the unexploited potential that exists in ethiopias coffee industry. Exporters and importers are also considered as stakeholders in the value chain. Ensuring economic viability and sustainability of coffee production executive summary coffee is the worlds favorite beverage, with an estimated 400 billion cups consumed per year.
The tea value chain in kenya 41 illustration of principle 6. Denis seudieu, chief economist international coffee council london, march 2011 table 1. Both fairtrade and the coffee value chain link together the producer and the consumer. Coffee is the second largest valued commodity in international trade, and the most widely traded tropical agricultural commodity after petroleum. Arabica coffee is more difficult and costly to grow than robusta. Deregulation, quality and the reorganization of coffee marketing in east africa. Download our free value chain templates in software package to. The main downside of creating a value chain diagram through analysis is that it involves a lot of work. Those tasked to do the job encounter difficulties in many areas including the gathering of data, identifying functions or tasks which might add real or perceived value, and creating then applying the plan. The report defines the market in terms of traders and roasters, who procure coffee to supply to the retail distribution channel for end consumers. Starbucks is one company that is interesting to analyze from a value chain perspective because of the substantial value added from coffee bean procurement to distribution and from store supply to. For coffee, the supply chain typically includes three main stages see figure 1.
A fair share for smallholders 2006 food and agriculture. Hetzel and his team advise governments, exporter groups and private coffee industry stakeholders to sustainably increase the value of coffee production and trade. The value chain starts from the farmer and goes up to the level of the roaster. The value chain actors will play a critical role to increases the profit plow back in the ethiopian coffee sector and then will significantly improve living standards of the poor who are at the. This is of importance as the geographical distance between where most coffee is produced and consumed can be.
Valuechain analysis is an analytical framework that is used to analyse relationships between various parts of operations and the manner in which each part adds value to contribute to the level of revenues. Developing sustainable food value chains guiding principles. Edraw can also convert all these templates into powerpoint, pdf or word templates. Building up commodity chains for competitiveness in nicaragua. This assessment provides an overview of the coffee market at the international and national level and an analysis of the coffee chain in haiti and the region. The latter stage includes the modern espresso machines and coffee capsules found in many homes and offices. After completing the value chain analysis, you can now provide the primary stockholders of the business with an overview of where the business stands, where it excels, and where you can make improvements with improvements, start with those that need minor changes but will provide highimpact results. This paper aims to analyze and discuss the evolution towards sustainable coffee supply chain and its management in vietnam. Amaro, coffee, production, value chain and mlr model. Value chain approaches are revolutionizing agriculture and the food industry. The coffee value chain in central america 49 illustration of principle 8. This is of importance as the geographical distance between where most coffee is produced and consumed can be great and level development often varies widely. Value chain analysis for the coffee sector in rwanda cbi.
Edraw is used as a value chain software coming with readymade value chain templates that make it easy for anyone to create beautiful value chain. This unequal distribution of value has had a disastrous effect on farmers, millers, and even exporters in developing countries. Download toward a sustainable coffee value chain 8mb pdf. Coffee is healthful and protective against many chronic diseases. Draft report analysis of 5 value chains yemen fish. The analysis finds that value chains for coffee are largely diffuse in nature, with. Value chain analysis is an analytical framework that is used to analyse relationships between various parts of operations and the manner in which each part adds value to contribute to the level of revenues. The complete coffee value chain was critically examined and discussed by leading experts in the field, culminating with an international perspective of the unexploited potential that exists in ethiopias coffee industry. Louis dreyfus company toward a sustainable coffee value chain. Company value chain can be divided into two groups. Burundi in the agribusiness, coffee and energy global value chains. We will illustrate this with a comparative analysis of the coffee value chain in several igc countries, including rwanda, tanzania and uganda and eventually kenya as well as nonigc countries, e.
However, the sector is facing enormous challenges as the current farming methods and. Most of the value added to coffee also aligns with highincome countries. The supportive activities are formed by four key factors like technology aspects, and the primary activities has a series of subcategories such as branding, engagements, storing and so on. This free course explores the economic and cultural value of coffee. The findings would inform a meeting of stakeholders in the coffee value chain in the democratic republic of congo at which those stakeholders present would explore how the value chain in which they are active participants could be made more transparent using open data. Through such an approach it is anticipated that food security can be enhanced and extreme hunger reduced in yemen. The upstream portion of the value chain shows the product development from adding teas and international influences, to the research that took. A framework to obtain sustainability indicators along the coffee value chain based on a comparative study between mexican and colombian retailers is described. However, the sector is facing enormous challenges as the. Analysis of fish, honey, coffee, wheat and qat value chain in yemen draft report july 2009 6 synthesis i.
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