CONTENTS Acknowledgements 6 Abbreviations 7 Foreword 8 Part I: Overview
10 11 12 15 20
Part II: Section A
22
O.1. Objectives and structure of the report O.2. Introduction: the value of coffee O.3. Main findings O.4. Key areas for action for sustainable, inclusive and resilient growth of the C-GVC The rise of the coffee Global Value Chain: evolution and drivers of participation Key findings A.1. Coffee export values have been increasing A.1.1. Processed coffee exports increased more than green coffee exports since 1990s A.1.2. Which regions captured more value? A.1.3. Coffee exports are increasingly concentrated A.1.4. Functional upgrading in producing countries – development trajectories A.2. Determinants of GVC participation A.2.1. Indicators of GVC participation A.2.2. The drivers of GVC participation A.2.3. Capital, domestic industrial capacity, and FDI drive processed coffee exports whereas tariffs reduce them A.2.4. Functional upgrading is an opportunity for Robusta producers with capital and industrial capacity, whereas product upgrading represents an opportunity for Arabica producers.
2
COFFEE DEVELOPMENT REPORT 2020
23 24
33
Part II: Section B
Resilience of the coffee Global Value Chain Key findings B.1. What is resilience in the context of the global coffee sector? B 1.1. Political instability and conflict in coffee-exporting countries B.1.2. Climate change and environmental shocks B.1.3. Pandemics and public health crises B.1.4. Concentration of production in fewer origins and its impact on resilience
Part II: Section C
Economic, social and environmental impacts of the coffee Global Value Chain in producing countries Key findings C.1. Expansion of the GVC as a driver of sustainable and inclusive growth C.2. Evidence on the socio-economic impact of the C-GVC C.2.1. The C-GVC helps to remove obstacles for farmer participation in high-value markets C.2.2. Responsible trading practices and improved corporate governance in the GVC C.2.3. Buyer-driven initiatives as a key feature of the C-GVC C.2.4. Upgrading through post-harvest processing can facilitate participation in the GVC C.2.5. The C-GVC facilitates FDI in post-harvest processing and value addition C.3. The C-GVC can contribute to achieving the Sustainable Development Goals C.3.1. C-GVC and Gender C.3.2. Productive employment and decent work for all C.3.3. Environmental impact in the C-GVC
40 41 42
50
51 53 56
63
