| Coffee is not just a beloved beverage; it also plays a significant role in the world economy. According to the International Coffee Organization (ICO), coffee is the second most traded commodity globally after petroleum, with an estimated 165 million bags of coffee being consumed worldwide each year!
Coffee's price trends often reflect broader macroeconomic conditions and can impact the economies of coffee-producing countries. For instance, a decrease in coffee prices may reduce the income of coffee farmers, affecting their livelihoods and the local economy. Conversely, rising coffee prices can stimulate economic growth in coffee-exporting nations.
In addition, the cost of a cup of coffee can vary significantly across different cities around the world, providing insights into the local economy, cost of living, and consumer behaviour. For example, in the bustling metropolis of New York City, a cup of coffee can range from $2.50 to $5.00 in popular coffee shops. The higher prices in cities like New York reflect the higher cost of living, labour costs, and the premium placed on convenience and quality. This demonstrates the purchasing power of consumers in a developed economy. On the other hand, in Nairobi, Kenya a cup of coffee typically costs around 100 Kenyan Shillings (approximately $1). This lower price reflects the local economy, where coffee is grown and consumed domestically. Kenya is known for its coffee production, and the affordability of coffee in Nairobi aligns with its accessibility and local demand!
This thriving coffee industry employs millions of people, particularly in developing countries, where coffee farming provides a vital source of income for many families! Coffee originated in Ethiopia and then spread to different parts of the world. Now, its journey from bean to cup involves a complex supply chain that includes farmers, exporters, importers, roasters, and retailers. The coffee trade is crucial for fostering economic development and promoting global trade relationships! |
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