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Coffee, Cooperation and Competition: a Comparative Study of Colombia and Vietnam

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Coffee, Cooperation and Competition: a Comparative Study of Colombia and Vietnam Coffee, Cooperation and Competition: A Comparative Study of Colombia and Vietnam Authors: 1 Adriana Roldán-Pérez Maria-Alejandra Gonzalez-Perez Pham Thu Huong Dao Ngoc Tien Research assistants (Colombia): Franz Xaver Riegler Stephanie Riegler Catalina Tabares Melissa Eusse Research assistant (Vietnam): Nguyen Thu Hang 1 Acknowledgements: Funding: Universidad EAFIT, Colombia Foreign Trade University (FTU), Vietnam United Nations Conference on Trade and Development (UNCTAD) Institutional Affiliation: Department of International Business at Universidad EAFIT (Colombia) Foreign Trade University (FTU) (Vietnam) Other: Eamonn McDonagh and Ignacio Mastroleo Joseph Clements (UNCTAD) Ralf Krueger (UNCTAD) Table of contents List of figures .............................................................................................................. 4 List of tables ................................................................................................................ 4 Acronyms, abbreviations and definitions ................................................................... 6 Weights and measures ................................................................................................ 6 Abstract ....................................................................................................................... 7 1 Introduction ............................................................................................................. 8 1.1 Research objectives ....................................................................................................... 9 1.1.1 General objectives .................................................................................................... 9 1.1.2 Specific objectives ................................................................................................... 9 1.2 Research methodology .................................................................................................. 9 2 Literature review on the global value chain (GVC) of coffee ............................... 11 2.1 Theory of global value chains ..................................................................................... 11 2.1.1 Introduction to the value chain concept .................................................................. 11 2.1.2 Global commodity chains ....................................................................................... 12 2.1.3 Value chain analysis............................................................................................... 13 2.1.3.1 Definition .................................................................................................................... 13 2.1.3.2 Methodological aspects of value chain analysis ............................................................ 15 2.1.4 Governance ............................................................................................................ 15 2.1.5 Barriers to entry and rent ........................................................................................ 16 2.1.6 Upgrading in value chains ...................................................................................... 16 2.2 Overview of the world coffee market ......................................................................... 17 2.2.1 World coffee production ........................................................................................ 17 2.2.2 Production by type of coffee .................................................................................. 18 2.2.3 Coffee producing countries .................................................................................... 19 2.2.4 Stocks in producing countries ................................................................................. 20 2.2.5 World coffee exports .............................................................................................. 21 2.2.6 World coffee consumption ..................................................................................... 24 2.2.7 The International Coffee Organisation and coffee prices ......................................... 29 2.2.8 Mapping the global value chain of coffee ............................................................... 31 3 Analysis of Colombia and Vietnam’s participation in the coffee value chain...... 33 3.1 Vietnam’s participation in the GVC of coffee ............................................................ 33 3.1.1 Background ........................................................................................................... 33 3.1.1.1 Natural conditions ....................................................................................................... 33 3.1.1.2 Infrastructure ............................................................................................................... 34 3.1.1.3 Policy and legal frameworks ........................................................................................ 35 3.1.2 Vietnam’s position in the global coffee market ....................................................... 36 3.1.2.1 Export output .............................................................................................................. 37 3.1.2.2 Export turnover ........................................................................................................... 37 3.1.2.3 Export product structure .............................................................................................. 38 3.1.2.4 Export prices ............................................................................................................... 39 3.1.2.5 Export markets ............................................................................................................ 40 3.1.3 Actors .................................................................................................................... 42 3.1.3.1 Farmers ....................................................................................................................... 42 3.1.3.2 Middlemen .................................................................................................................. 43 3.1.3.3 Processing or exporting companies .............................................................................. 44 3.1.3.4 Vietnam’s instant coffee market ................................................................................... 44 3.1.3.5 Other players ............................................................................................................... 45 3.1.3.5.1 The Vietnam Coffee and Cocoa Association ......................................................... 45 2 3.1.3.5.2 Buon Ma Thuot Coffee Exchange Centre .............................................................. 46 3.1.4 Case studies of coffee companies in Vietnam ......................................................... 46 3.1.4.1 Case study one: Vinacafe Buon Ma Thuot .................................................................... 46 3.1.4.2 Case study two: Phuong Vy Coffee Company .............................................................. 50 3.2 Colombia’s participation in the GVC of coffee .......................................................... 53 3.2.1 Colombia’s coffee industry .................................................................................... 53 3.2.1.1 Natural conditions ....................................................................................................... 53 3.2.1.2 Infrastructure ............................................................................................................... 54 3.2.1.3 Regulatory framework ................................................................................................. 56 3.2.2 Position in international markets ............................................................................ 56 3.2.2.1 Coffee production ........................................................................................................ 56 3.2.2.2 Coffee exports ............................................................................................................. 58 3.2.2.3 Domestic coffee consumption ...................................................................................... 59 3.2.2.4 Actors ......................................................................................................................... 60 3.2.2.4.1 Coffee growers..................................................................................................... 60 3.2.2.4.2 National Federation of Coffee Growers of Colombia............................................. 61 3.2.2.4.3 Coffee processors ................................................................................................. 61 3.2.2.4.4 Coffee exporters ................................................................................................... 62 3.2.2.4.5 The state .............................................................................................................. 63 3.2.3 Internationalisation and market innovation ............................................................. 64 3.2.4 Case studies of coffee companies in Colombia ....................................................... 66 3.2.4.1 Case study one: National Federation of Coffee Growers ............................................... 66 3.2.4.2 Case study two: Colcafé S.A. ....................................................................................... 67 3.2.5 Colombia’s participation in the GVC of coffee ......................................................
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    ! ! ! ! ! ! ! ! UNIVERSITY OF CALIFORNIA RIVERSIDE! ! ! On Culprits and Crisis: Branding Vietnam in the Global Coffee! Industry ! ! A Dissertation submitted in partial satisfaction of the requirements! for the degree of ! Doctor of Philosophy! in! Anthropology! by! Sarah Gayle! Grant June !2014 ! ! ! ! Dissertation Committee: Dr. Christina Schwenkel, Chairperson Dr. Paul Ryer Dr. Derick Fay ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! Copyright by Sarah Gayle Grant 2014 ! ! ! ! ! ! ! ! ! ! ! ! ! ! The Dissertation of Sarah !Gayle Grant is approved: ! Committee Chairperson ! ! ! ! ! University of California, Riverside ACKNOWLEDGMENTS! ! ! I would like to acknowledge the students, faculty, and staff of the University of California, Riverside Department of Anthropology for their patience, support, and encouragement over the past years. In particular, I am indebted to my advisor Christina Schwenkel for her mentorship and ability to challenge me to think in new and productive ways but also to develop my own voice and perspective on contemporary Vietnam and cultural anthropology. I thank Paul Ryer for his impressive ability to share oral anthropological lore that is at once humbling and helpful, but more importantly, our conversations about commodities and market-socialism that inform my scholarship at large. I thank Piya Chatterjee for her perspective, guidance, wisdom, and presence as an meaningful ally throughout my time in Riverside. And I thank Derick Fay for his theoretical depth and input on the environmental and agricultural aspects of my work. David Biggs, Mariam Lam, Rene Lysloff, Hendrik Maier, Sally Ness, Deborah Wong and everyone in the UC Riverside “SEATRiP” community brought me here many years ago and I am forever grateful for the lively Southeast Asian Studies community in the Inland Empire. Conducting research in Vietnam is no small task and I owe a debt of gratitude to many people who live over eight thousand miles away.
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