Coffee Supply Chain Research Articles

Growing Inequality in the Coffee Global Value Chain: A Complex Network Assessment

Following the liberalization of the coffee sector, governance and power balance in the international coffee trade has changed, with associated impacts on livelihoods in producing countries, most of which are middle- and low-income countries. Drawing on trade data for the period 1995–2018, we examine the dynamics and evolution of the international green coffee market to shed light on the re-distribution of value in the coffee supply chain. Data analysis shows that, over the studied period, the green coffee trade has increased considerably while the number of countries with a relevant role in trade has decreased, so that large exporting countries cover a higher share of trade, to the detriment of small exporting countries. We analyzed various properties of the global coffee trade network to provide insight on the relative contribution of countries not only in terms of their export value but also in terms of other selected features. The green coffee trade has gone from being distributed in many traditionally coffee-producing countries to concentrating mainly on the major coffee producers, as well as in some non-producing countries. These changes in the structure of the international green coffee market have led to greater inequality between producing and importing countries.

Co-Creation Approach in Designing a Sustainable Coffee Supply Chain (a Case in Bandung Regency, West Java, Indonesia)

Agricultural development in Indonesia had been conducted in a top-down manner since its independence, which has limited its effectiveness due to the gap between the reality faced by the development actors and actors who are involved in the agricultural supply chain. This paper provides evidence of a more participative model design by involving most of the actors in its process. The study was performed in action research by using a co-creation approach, involving actors who contributed their thoughts in designing the most suitable model that can support them in reaching a more sustainable supply chain for coffee agribusiness in Bandung Regency, West Java, Indonesia. The results show that a co-creation approach has managed to improve the performance of the coffee supply chain by the formation of a cooperative, which enhanced coordination among stakeholders. Furthermore, the involvement of farmers provided significant contributions in the design of the model.

Blockchain-Based Traceability System From the Users’ Perspective: A Case Study of Thai Coffee Supply Chain

We explored the use of blockchain technology for traceability to improve the safety and value of food, focusing on the coffee supply chain as a case study. The main goal was to evaluate the feasibility in terms of design, perceived benefits, and challenges of applying blockchain and traceability from the users’ perspective. We implemented a prototype using a user-centered iterative interface design. Then we used the prototype to answer our research questions in mixed-method research, including in-depth interviews (10 participants) and a survey (350 participants) with stakeholders in the coffee supply chain in Thailand. The results showed that timeline-based design was preferred over map-based or text-based design for the visualization of traceability information and that blockchain was a promising technology, as 67% of the survey participants saw a positive influence of blockchain on the adoption of applications. The most notable benefits were origin checking and increasing product trustworthiness. The most notable challenges were inaccurate or incomplete information and the disclosure of trade secrets. More work is required to address the challenges for everyone in the supply chain ecosystem to adopt the proposed traceability system, including (1) providing trustworthiness and completeness of information by cross-checking with third parties or other users, (2) protecting sensitive information by aligning users’ interests or allowing control of information disclosure, and (3) educating and giving producers the motivation for the difficulty and the extra work.

Blockchain is not a silver bullet for agro-food supply chain sustainability: Insights from a coffee case study

Information sharing lies at the core of most governance interventions within agro-food commodity supply-chains, such as certification standards or direct trade relationships. However, actors have little information available to guide sustainable consumption decisions beyond simple labels. Blockchain technology can potentially alleviate the numerous sustainability problems related to agro-food commodity supply-chains by fostering traceability and transparency. Despite significant research on blockchain, there is limited understanding of the concrete barriers and benefits and potential applications of blockchain in real-world settings. Here, we present a case study of blockchain implementation in a coffee supply-chain. Our aim is to assess the potential of blockchain technology to promote sustainability in coffee supply chains through increased traceability and transparency and to identify barriers and opportunities for this. While our pilot implementation clearly illustrates certain benefits of blockchain, it also suggests that blockchain is no silver bullet for delivering agro-food supply chain sustainability. Knowledge on provenance and transparency of information on quality and sustainability can help trigger transformation of consumer behaviour, but the actual value lies in digitising the supply chain to increase efficiency and reduce costs, disputes, and fraud, while providing more insight end-to-end through product provenance and chain-of-custody information. We identify a need to understand and minimize supply chain barriers before we can reap the full benefits of digitalization and decentralization provided by blockchain technology.

Sustainable and resilient supplier selection: the case of an Indonesian coffee supply chain

Supplier selection has become one of the core elements of supply chain management because suppliers affect a company's bottom line and supply chain performance directly. Supplier selection is a complex decision-making process that includes multiple criteria and a set of supplier alternatives. This study integrates the dimensions of sustainability and resilience into the supplier selection process. The aim is to propose a systematic supplier selection framework to help companies categorize suppliers based on their sustainability and resilience performance and select the ones that perform well on those two dimensions. We use a novel multi-criteria decision-making method (MCDM), the Best-Worst Method (BWM), to solve the complex decision-making process of coffee supplier selection in a local roastery in Indonesia. The data was collected from two groups: experts regarding the coffee supply chain in Indonesia and a decision-maker at a coffee roastery in Indonesia. The result shows that the economic criteria for sustainability performance and risk reduction criteria for resilience performance are the most important supplier selection criteria for both groups. There are no significant differences between the importance evaluations of criteria by both group of experts, which indicates that the supplier selection process of the company aligns with the expert perspective.

Sustainability in the Coffee Supply Chain and Purchasing Policies: A Case Study Research

The literature shows that companies increasingly need to become more sustainable. To achieve sustainable development, supply chain management needs to be related to sustainable business practices, which include relevant values and sustainable purchasing policies. Focusing on these principles on the topic of coffee, this study shows the difficulties associated with this product. The study finds that coffee production is dependent on factors unrelated to management. This paper presents a case study of Delta Cafés owned by Grupo Nabeiro, a Portuguese company that shows relevant ways of achieving sustainable business methods to be incorporated in supply chain management. Our research shows a business based on sustainable, efficient handling of the food safety of its product and certification along the supply chain, as well as an adaptable purchasing policy. By reviewing the literature and information provided by the company, we confirm that the case study is a business leader in innovation, thought process, and action related to sustainability practices. Our research illustrates how business operations and culture can be explored to achieve sustainable buying processes and practices.

Contesting Legitimacy in Global Environmental Governance - an Exploration of Transboundary Climate Risk Management in the Brazilian-German Coffee Supply Chain

Contesting Legitimacy in Global Environmental Governance - an Exploration of Transboundary Climate Risk Management in the Brazilian-German Coffee Supply Chain

Risk analysis of arabica coffee supply chain in Aceh Tengah regency, Aceh Province, Indonesia

Risk analysis of arabica coffee supply chain in Aceh Tengah regency, Aceh Province, Indonesia

Analysis of distribution risk in Arabica coffee supply chain during pandemic in Aceh Tengah District

Coffee is a plantation commodity that has the opportunity to be developed so as to increase state income. This study aims to determine how the risk of distribution in the Arabica coffee supply chain during the COVID-19 pandemic and to determine the most influential risk in the distribution of the Arabica coffee supply chain during the COVID-19 pandemic in Aceh Tengah District. The data used in this study are primary data and secondary data. This study uses descriptive analysis and ordinal logistic regression analysis. The results of this study indicate that the distribution risk of the Arabica coffee supply chain at the farm level is classified as high risk with a percentage of 87.2%, the distribution risk of the Arabica coffee supply chain at the collector level is in the medium category risk with a percentage of 45.5% and distribution risk Cooperatives began to occur due to the COVID-19 pandemic. From the interpretation results, it is stated that the risk of distribution risk in the Arabica coffee supply chain is the riskiest risk of loss of 0.069 times, then the variable risk of goods being exchanged is 0.036 times and the variable risk of delay is 0.004 times.

ROBUSTA COFFEE SUPPLY CHAIN SYSTEM IN KEPAHIANG REGENCY, BENGKULU PROVINCE

Kepahiang Regency is ones of largest producing robusta coffee on Bengkulu Province. Many business actors are involved in the activities of this product supply chain system, they are supposed to be lower income This research tried to explain in a detailed and systematic description so that the three activities in the robusta coffee supply chain system in Kepahiang Regency. Snow ball sampling method was used to determine actors sample in Supply Chain System of Robusta Coffee. Secondary data was production, land size, and productifity were collected from Central Bureau of Statistics, Regional Agriculture Office of Kepahiang Regency and coffee consumption was collected from International Coffee Organization. Primary data was product, price, quantity, delivery time, payment, and delivery services. Data analysis used Hayami et al model for value added, share margin for financial flow, flow diagram for information and product flows. The results showed that there are three patterns of robusta coffee supply chain in Kepahiang Regency, namely Pattern 1: Coffee farmers –Village collectors – Regency Collectors-Coffee Shop Palembang. Pattern 2: Coffee farmers –Village collectors – Regency collectors 1– Coffee company- Exporter. Pattern 3: Coffee farmers - Regency collectors 2 - Coffee company - Exporter. Generally, business activities in the supply chain in namely 1) categorization of the quality and quantity of large products in the supply chains 2, and 3, 2) Flow of price information is obtained from business actors downstream as price maker to actors upstream as price taker in the supply chain system, and 3) financial flow and the largest marketing margin in supply chains 2, 3 and 1 respectively,and 4) the payment system being carried out in three, namely cash, credit and payment. Value added is received by company was Rp12.151 per kgs since it was grading treatment for gaining better product quality. The development of processing industry of robusta coffee could increase added value of product and income of actors in Supply Chain System, then contribute to regional economy.

Circular Economy Business Models for the Tanzanian Coffee Sector: A Teaching Case Study

One of the major issues the agri-food supply chains is the considerable production of by-products, which are mostly discarded as wastes and dangerously landfilled. This problem is particularly acute in the coffee supply chain: coffee cultivation generates by-products and in quantities which are potentially dangerous for the environment. A circular economy business model aimed at the recovery of these by-products may represent an interesting solution in terms of environmental, social, and economic sustainability. The goal of this paper was to provide teachers and educators with case material on circular business models that can be used for problem-based learning and case-based learning activities. The proposed case was built to address a real-world problematic situation related to the coffee supply chain. From a theoretical point of view, this study contributes to the literature on circular economy business models by providing a case study developed in the context of a developing country. Furthermore, the research entails practical implications since it shows managers and startuppers how to map a circular business model in all its components under the guidance of a conceptual framework.

Dynamic capabilities in the “new normal”: a study of organizational flexibility, integration and agility in the Peruvian coffee supply chain

PurposeConsidering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs) – particularly, the need for higher agility – seems to be the key to survival in highly uncertain environments. This study aims to use the dynamic capability view (DCV) theory to analyze how three key supply chain capabilities – organizational flexibility, integration and agility – should be combined to obtain the desired supply chain performance.Design/methodology/approachThe authors designed a conceptual model in which the relationships between these three key capabilities and supply chain performance were hypothesized. The model was first tested through partial least square regression using survey data collected from 98 members of the Peruvian coffee supply chain. A fuzzy-set qualitative comparative analysis (fsQCA) was conducted to uncover how DCs could be combined in successful supply chain configurations.FindingsThe authors show that organizational flexibility is a driver of higher agility in agri-food supply chains, together with external and internal supply chain integration, that have a direct impact on agility, which positively affects supply chain performance. Higher levels of supply chain agility are necessary but insufficient to guarantee high performance, as sufficiency is reached when both integration (internal and/or external) and agility are present.Originality/valueThis study represents a pioneering attempt to apply the DCV theory to agri-food supply chains – characterized by many sources of uncertainty. All the DCs are included within the same model and the joint use of PLS regression and fsQCA provides evidence about the relationships between DCs and how they can empower agri-food supply to obtain the desired performance.

Willingness to Pay for Sustainable Coffee: A Case of Thai Consumers

The aim of this study is to investigate the willingness to pay (WTP) for sustainable coffee, and its determinants as well. Drawing an empirical survey with 500 consumers in Thailand, contingent valuation method was performed to elicit the WTP for sustainable coffee. A logistic model was adapted to evaluate the impacts of factors under Fishbein and Ajzen’s theory of reasoned action, that is, to test hypotheses of attitude and subjective norm, along with consumer characteristics on the WTP. Stata15 was adopted to analyze the cross-sectional data in logistic models; meanwhile probit regression was performed to confirm the results of the logistic model. The results indicate that attitude, self-brewing, marital status, past experience, job, and household income influence WTP. The WTP or premium price of sustainable coffee as compared to the conventional coffee is found to be 36.48%. Various stakeholders in coffee industry, for example, distributors, roasters, retailers and coffee farmers, as well as the policy makers, can act accordingly based upon the findings to develop a sustainable value-added coffee supply chain.

Dynamics of Coffee Certifications in Producer Countries: Re-Examining the Tanzanian Status, Challenges and Impacts on Livelihoods and Environmental Conservation

Certification is increasingly becoming necessary for accessing coffee export markets and practicing environmental conservation, especially at this time when many of the farmers in developing countries strive to achieve agricultural transformation. Using data from 400 randomly selected coffee farmers in Tanzania, the study determined the status, constraints, key drivers, and impact of coffee certifications. Descriptive statistics and the endogenous switching regression (ESR) model were used for data analysis. Results indicated that the level of coffee certification is low, being constrained by unawareness and inaccessibility, the prevalence of coffee diseases, failure in realizing price advantages, and certification not being cost effective. Economies of scale, experience, and participation in collective actions are significant factors affecting coffee farmers’ decision to join certification schemes. Additionally, the study rejects the hypothesis of certification to improve household income. However, certification improved awareness and practices of environmental conservation among coffee farmers. It is thus important to embark on awareness creation and make certification services accessible and cost effective to coffee farmers for increased access to niche export markets. Easing transmission of price premiums to coffee farmers will also increase the supply of sustainably grown coffee, improve coffee farmers’ livelihood, and help in the attainment of environmental sustainability goals within the coffee supply chain.

The Role of Coffee Production and Trade on Gender Equity and Livelihood Improvement in Tanzania

Achieving the sustainable development goals in developing countries will require the realization of benefits from the global supply and value chains, such as coffee, for inclusive economic development and poverty reduction. This study uses the data of 400 men and women randomly sampled coffee farmers from a developing country, Tanzania, to evaluate coffee income distribution, and how general coffee production and trade contribute to gender equity and livelihood improvement. Oaxaca–Blinder decomposition and Gini coefficient models are used for data analysis. We find a gender imbalance from the ownership and control of resources to the participation of men and women in the coffee supply chain. However, investing in supporting the coffee supply chain has an impact on livelihood improvement, due to coffee income inequality reducing effects. There is a gender gap in the income earned from coffee production and trading, which is 44% of the women’s structural disadvantages. Empowerment for equal access to land and credit, and offering trade facilitation services will bridge the existing gender gap. Additionally, developing and disseminating new coffee production technologies that will reduce discrimination, by offering new opportunities and making coffee an inclusive supply chain, remains imperative.

Coffee biowaste valorization within circular economy: an evaluation method of spent coffee grounds potentials for mortar production

PurposeSpent coffee grounds (SCG) are biowastes extensively generated within the coffee supply chain. Nowadays, their disposal represents an increasing environmental concern due to its toxicity and organic nature. With the estimated increase of coffee production and consumption in the upcoming years, there is an imperative need to find a proper reverse option, along with a novel industrial application, which allows for the valorization of this coffee by-product within a circular economy perspective. This study aims at investigating a potential reuse of spent coffee grounds to produce novel construction materials to be used for sustainable buildings.MethodsAfter having illustrated the forward flows within the coffee life cycle and the potential reverse flow options, an evaluation method based on multi-criteria analyses was elaborated to test not only the technical but also the environmental and economic performances of novel materials originating from the incorporation of SCG as an aggregate in natural hydraulic lime and geopolymer-based mortars. Moreover, we focus on the reuse of another waste streams— biomass fly ash—deriving from the paper-pulp industry, rarely investigated in both traditional construction applications and in geopolymer manufacture. The two (geopolymer- and lime-based) mortar typologies are here studied and compared as potential green material for applications in construction, with satisfying engineering performance and high insulation attitude, giving a new life to a common organic waste. Consequently, we compare eight formulations by means of multi-criteria approaches that are nowadays claimed as a useful and effective decision aiding support instrument to assess the development of new sustainable construction materials. They permit to consider simultaneously some controversial and often uncertain aspects like technological (as the usual scientific studies do), environmental, and economic (more difficult to easily approach and evaluate). For this purpose, in this paper, we have analyzed the performance of the novel bio-composite mortars using VIKOR and TOPSIS methods to rank a set of alternatives according to various evaluation criteria that often conflict one with each other.ResultsResults show that adding spent coffee grounds can efficiently improve the technical and sustainable performances of the novel mortars for different applications in the building sector. The presence of SCG increases water absorption and improves the insulation performance along with an environmental impact reduction. The considered technological properties are highly promising—such as the improvement in thermal insulation. In particular, even the addition of only 5% SCG leads to a significant reduction of the thermal conductivity and consequently to a greater insulating performance.ConclusionsTo date, most of the available literature on recycling SCG in construction materials do not consider mortar-based applications and, moreover, nor multi-criteria approaches. Therefore, our study proposes itself as an innovative track solution to food waste management lowering the employment of non-renewable natural resources and the costs associated to construction material production. At the same time, a novel and innovative way of such waste disposal is suggested, pursuing the sustainability and substantially reducing the environmental impact of construction and building materials. This study is a fundamental step in assessing the applicability of our designed and produced materials and its potentials to be produced at an industrial scale.

Risk Mitigation Analysis in a Supply Chain of Coffee Using House of Risk Method

Perusahaan Daerah Perkebeunan (PDP) Kahyangan Jember in East Java is a regional company owned by The Jember Regency Government that is engaged in the plantation business. PDP Kahyangan Jember implements supply chain management in its business, however there are still some problems in its implementation and management. Some of the issues are the quantity of ground coffee production that does not meet the targeted quantity, decreased coffee beans quality, and reduced coffee yields. These problems can be reduced using a risk management approach. This study aimed to identify the activities of the ground coffee supply chain in PDP Kahyangan Jember and its risks, to determine the level of the risks, and to develop a risk management strategy for PDP Kahyangan Jember ground coffee supply chain. This study used the House of Risk (HOR) method which consists of two phases, i.e. HOR 1 and HOR 2. HOR 1 is used to identify risks in the supply chain. HOR 2 is used to develop a strategy for handling these risks. The HOR 1 analysis results show there are 28 risk events and 33 risk sources, with 15 priority risk sources being considered in the risk management strategies preparation. The results of HOR 2 analysis show eight priority management strategies that can be implemented by PDP Kahyangan Jember.

Empirical Detection and Quantification of Price Transmission in Endogenously Unstable Markets: The Case of the Global–Domestic Coffee Supply Chain in Papua New Guinea

Price transmission through global–domestic agricultural supply chains is a fundamental indicator of domestic market efficiency and producer welfare. Conventional price-transmission econometrics test for a theory-based spatial-arbitrage restriction that long-run equilibrium prices in spatially distinct markets differ by no more than transaction costs. The conventional approach is ill-equipped to test for price transmission when endogenously unstable markets do not equilibrate due to systematic arbitrage-frustrating frictions including financial and institutional transaction costs and biophysical constraints. We propose a novel empirical framework using price data to test for market stability and price transmission along international-domestic supply chains incorporating nonlinear time series analysis and recently emerging causal-detection methods from empirical nonlinear dynamics. We apply the framework to map-out and quantify price transmission through the global-exporter–processor–producer coffee supply chain in Papua, New Guinea. We find empirical evidence of upstream price transmission from the global market to domestic exporters and processors, but not through to producers.

Bote Central: Creating a Chain of Happiness for Philippine Coffee Farmers

The Philippine coffee industry is beset by a multitude of problems: declining land area planted to coffee, poor quality of coffee beans due to poor farm practices, and low productivity of coffee farmers who are unable to earn enough commensurate to their hard labor. As a result, Philippine coffee bean production has been on a decline for over a decade, in spite of the increasing local demand for coffee. In this paper, we illustrate how the different challenges faced by the Philippine coffee industry are closely interlinked, but are inadequately addressed by the fragmented efforts undertaken by government and the private sector. Utilizing a single-case (embedded) study research design, we demonstrate that a holistic and collaborative approach that targets critical leverage points in the coffee supply chain might be a viable approach to address the systemic nature of the problem. The case of Bote Central, particularly its Kape’t Buhay Program, highlights the importance of having a mechanism that effectively coordinates the efforts of the various players in the coffee supply chain towards a clear and compelling goal.

Cooperating With “Open Cards”—The Role of Small Intermediary Businesses in Realizing Sustainable International Coffee Supply

Despite improvements, international food supply in general and coffee supply in particular continue to cause significant greenhouse gas emissions, economic inequities, and negative impacts on human well-being. There is agreement that dominant economic paradigms need to change to comply with the sustainability principles of environmental integrity, economic resilience, and social equity. However, so far, little empirical evidence has been generated to what extent and under which conditions sustainable international coffee supply could be realized through small intermediary businesses such as roasteries, breweries, and/or retailers. This case study reports on a collaborative project between a small coffee brewery and its customers in the U.S. and a small coffee roastery and its suppliers in Mexico that demonstrates how sustainable coffee supply could look like and explores under which conditions it can be realized. A research team facilitated the cooperation using a transdisciplinary research approach, including field visits and stakeholder workshops. The project (i) assessed the sustainability challenges of the current supply and value chains; (ii) developed a vision of a joint sustainable coffee supply chain; (iii) build a strategy to achieve this vision, and (iv) piloted the implementation of the strategy. We discuss the project results against the conditions for sustainable international coffee supply offered in the literature (why they were fulfilled, or not). Overall, the study suggests that small intermediary coffee businesses might have the potential to infuse sustainability across their supply chain if cooperating with “open cards.” The findings confirm some and add some conditions, including economic resilience through cooperation, problem recognition, transparency, trust, and solidarity across the supply chain. The study concludes with reflections on study limitations and future research needs.