Large agri-food corporations in the global staple and cash crops markets: a quantitative analysis of rice and coffee through the virtual water perspective

Abstract

The paper investigates the influence of major food corporations on global rice and coffee markets from 2013 to 2022, with a focus on market presence and water usage. It uses detailed data from the Euromonitor Passport and the CWASI datasets to analyze environmental impacts and virtual water (VW) flows at the company level, addressing gaps in the existing literature. Key findings show that although rice sales are larger than those of coffee in quantity, coffee embeds a higher total water use due to its greater unit water footprint (WF). The rice market is less internationalized and concentrated compared to the coffee market, where a few companies hold significant market shares across multiple countries. In 2022, the top 12 rice-selling companies control 16% of the global rice WF, exceeding the combined WF of the top three rice-importing nations. Similarly, the top 15 coffee-selling companies command 55% of the global roasted coffee WF, with significant disparities in VW quantities compared to major importing nations. The coffee market exhibits a higher number of companies with larger shares of WF than volumes, with this disparity increasing over time. Furthermore, more countries exhibit high and moderate concentration indices for coffee sales compared to rice. These findings highlight the considerable concentration of water resources among large companies, particularly in the coffee sector. The paper emphasizes the importance of considering the environmental implications of corporate activities in food supply chains, providing valuable insights for sustainability efforts in the agri-food industry.