COFFEE DEVELOPMENT REPORT 2020

CONTENTS

Acknowledgements Abbreviations Foreword

6 7 8

Part I: Overview

10

O.1. Objectives and structure of the report O.2. Introduction: the value of coffee

11 12 O.3. Main findings 15 O.4. Key areas for action for sustainable, inclusive and 20 resilient growth of the C-GVC

Part II: Section A

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.

22

23

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Part II: Section B

40

Resilience of the coffee Global Value Chain

Key findings 41 B.1. What is resilience in the context of the global 42 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

50

Economic, social and environmental impacts of the coffee Global Value Chain in producing countries

Key findings 51 C.1. Expansion of the GVC as a driver of sustainable 53 and inclusive growth C.2. Evidence on the socio-economic impact of the 56 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 63 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