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The Value of Coffee

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The Value of Coffee The value of coffee About this free course This free course is an adapted extract from the Open University course DD103 Investigating the social world www.open.ac.uk/courses/modules/dd103. This version of the content may include video, images and interactive content that may not be optimised for your device. You can experience this free course as it was originally designed on OpenLearn, the home of free learning from The Open University: www.open.edu/openlearn/people-politics-law/the-value-coffee/content-section-0. There you’ll also be able to track your progress via your activity record, which you can use to demonstrate your learning. Copyright © 2019 The Open University Intellectual property Unless otherwise stated, this resource is released under the terms of the Creative Commons Licence v4.0 http://creativecommons.org/licenses/by-nc-sa/4.0/deed.en_GB. Within that The Open University interprets this licence in the following way: www.open.edu/openlearn/about-openlearn/frequently-asked-questions-on-openlearn. Copyright and rights falling outside the terms of the Creative Commons Licence are retained or controlled by The Open University. Please read the full text before using any of the content. We believe the primary barrier to accessing high-quality educational experiences is cost, which is why we aim to publish as much free content as possible under an open licence. If it proves difficult to release content under our preferred Creative Commons licence (e.g. because we can’t afford or gain the clearances or find suitable alternatives), we will still release the materials for free under a personal end- user licence. This is because the learning experience will always be the same high quality offering and that should always be seen as positive – even if at times the licensing is different to Creative Commons. When using the content you must attribute us (The Open University) (the OU) and any identified author in accordance with the terms of the Creative Commons Licence. The Acknowledgements section is used to list, amongst other things, third party (Proprietary), licensed content which is not subject to Creative Commons licensing. Proprietary content must be used (retained) intact and in context to the content at all times. The Acknowledgements section is also used to bring to your attention any other Special Restrictions which may apply to the content. For example there may be times when the Creative Commons Non- Commercial Sharealike licence does not apply to any of the content even if owned by us (The Open University). In these instances, unless stated otherwise, the content may be used for personal and non- commercial use. We have also identified as Proprietary other material included in the content which is not subject to Creative Commons Licence. These are OU logos, trading names and may extend to certain photographic and video images and sound recordings and any other material as may be brought to your attention. Unauthorised use of any of the content may constitute a breach of the terms and conditions and/or intellectual property laws. We reserve the right to alter, amend or bring to an end any terms and conditions provided here without notice. All rights falling outside the terms of the Creative Commons licence are retained or controlled by The Open University. Head of Intellectual Property, The Open University 2 of 19 http://www.open.edu/openlearn/people-politics-law/the-value-coffee/content-section-0 Monday 25 November 2019 Contents Introduction 4 Learning Outcomes 5 1 Investigating money and coffee 6 2 The Coffee Quiz 8 3 Coffee, money and debt 10 4 Cultures of coffee consumption 13 5 Comparing cultures of coffee consumption 15 Conclusion 18 References 18 Acknowledgements 18 3 of 19 http://www.open.edu/openlearn/people-politics-law/the-value-coffee/content-section-0 Monday 25 November 2019 Introduction Introduction In this free course, The value of coffee, you will explore the economic and cultural value of coffee. Coffee is a luxury commodity, with millions of people depending on the money that it generates for their livelihoods. It is estimated that the global economic value of coffee amounts to around $173 billion per annum (ICC, 2014), but those who grow coffee are some of the most disadvantaged in the world. Coffee is the most popular drink worldwide, yet how cultures of coffee consumption have developed differently over time reveals important insights into how and why this drink is valued as it is. In this short course, you will think about the chain of processes that connect the drink you enjoy on a daily basis with circuits of economic and cultural value. You will begin your study by exploring the breakdown of the price of a cup of coffee and will have the chance to reflect on the fairness of this distribution. You will then complete a short quiz that highlights the importance of coffee to different countries in the world. You then watch a short film that explores the relationship between coffee and money and consider whether the price you pay in a coffee shop is sufficient. In the second short film, you learn about the differences between coffee consumption in Italy and the UK and are given the chance to compare and contrast why these coffee cultures developed in such different ways. This OpenLearn course is an adapted extract from the Open University course DD103 Investigating the social world. 4 of 19 http://www.open.edu/openlearn/people-politics-law/the-value-coffee/content-section-0 Monday 25 November 2019 Learning Outcomes After studying this course, you should be able to: ● understand how coffee prices impact upon coffee farmers’ livelihoods ● explain the complex relationship between coffee and money ● compare and contrast the key differences between coffee consumption in Italy and the UK ● understand that it is the interplay of historical, economic, social and technological factors that shapes the coffee culture of a country ● recognise that practices of coffee production and consumption have an impact on relations between and within countries across the globe. 1 Investigating money and coffee 1 Investigating money and coffee The trade of coffee across the globe is made possible because of the exchange of money. There are a number of stages in the process of transforming a coffee seed into the roasted beans that are brewed to make your daily cup. At each stage, money changes hands so that the final price of a cup of coffee in a coffee shop represents much more than just the cost of the raw coffee bean. Figure 1 A breakdown of the costs that make up your cup of coffee Figure 1 reveals the breakdown of costs within a £2.20 cup of coffee. Study this figure and answer the questions below. Activity 1 About 15 minutes Question 1 The coffee farmer receives 8 pence for every £2.20 cup of coffee sold: true or false? 6 of 19 http://www.open.edu/openlearn/people-politics-law/the-value-coffee/content-section-0 Monday 25 November 2019 1 Investigating money and coffee Answer False The farmer who plants, cultivates and picks the coffee receives only a share of the 8 pence portion for the coffee. That portion must be split between coffee roasters, importers, exporters, haulage companies and farmers, all of whom hope to make the business of exchanging coffee a profitable venture. It is not always easy for everyone in the coffee chain to secure a fair share. Question 2 Shop rents, retail taxes and staffing costs account for the majority of the cost of a £2.20 cup of coffee: true or false? Answer True The figure reveals that shop rents, retail taxes and staffing costs account for about £1.58, or 72%, of a £2.20 cup of coffee. Question 3 Do you think it is fair that the coffee shop makes 30 pence profit on each cup of coffee, whilst the farmer shares a percentage of the 8 pence portion? Provide your answer... Answer To answer this question, it is necessary to think about how to judge what is fair. The notion of justice is often contested because what seems fair for one person or society may not be considered fair if we take into account the needs or experiences of another person or society. In this case, it could be argued that because the raw coffee bean must be processed, transported, stored, roasted, brewed and poured by a skilled barista before it can be consumed, it does not seem unfair that the farmer only receives a small percentage of the value of the bean. 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. However, if the situation is looked at from a different perspective, the answer to the question is different. If the coffee farmer is unable to make enough money from the sale of his beans to support his basic needs and the needs of his family, while those higher up the coffee chain make a large profit from his labour, it could be argued that the situation is unfair. There are no right or wrong answers to the question and your values and experiences will likely shape how you think about this. 7 of 19 http://www.open.edu/openlearn/people-politics-law/the-value-coffee/content-section-0 Monday 25 November 2019 2 The Coffee Quiz 2 The Coffee Quiz Before you watch the first series of videos exploring the relationship between coffee and money, have a go at this short quiz to test your knowledge of the coffee industry.
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