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Date: 2024-08-17 Page is: DBtxt001.php txt2003090600

TVM Value Accountancy
PUTTING ACCOUNTANCY TO WORK FOR ALL OF SOCIETY
Metrics about Progress and Performance in the Economy and Society
Metrics that Measure Impact on People, Place and Planet
The Core of TrueValueMetrics
Chapter 9 - VALUE CHAIN
VALUE CHAIN - COFFEE

VALUE CHAIN - COFFEE

Value Chain – Coffee

Production
Land
Prepare land
Plant coffee
Tend growing trees
Harvest coffee
Post harvest activities
Transport coffee
Wash coffee beens
Dry coffee
Transport coffee
Store coffee
Process coffee
Grade coffee
Store coffee
Taste coffee
Store coffee
Auction coffee – physical auction
Auction coffee – futures
Transport coffee
Export coffee
Insure coffee
Ship coffee
Coffee market futures
Store coffee
Roast coffee
Grind coffee
Package coffee
Wholesale coffee
Transport and distribution
Retail coffee – coffee shop
Retail coffee – store
Consume coffee

Value Chain ... Fair Trade Coffee

The Fair Trade movement has become popular ... but is it a value adding initiative or something that merely adds to the complexity, adds to the cost and really does not do very much good.

The Fair Trade Value Chain
I watched a TV documentary about Fair Trade (probably in 2005) which followed some foreign buyers as they toured through Central America on a Fair Trade buying trip. The narrator pointed out that this was very important to the villages being visited, because if their quality was acceptable to the buyers they would get the higher Fair Trade prices.

So far so good ... but the narrator did not answer the question about what price the village would get if the quality was not good enough! The data included in the documentary seemed to suggest that Fair Trade was mainly marketing PR and hardly relevant for farmers.

Production

Land
Prepare land
Plant coffee
Tend growing trees
Harvest coffee
Post harvest activities
Transport coffee
Wash coffee beens
Dry coffee
Transport coffee
Store coffee
Process coffee
Grade coffee
Store coffee
Taste coffee
Store coffee
Auction coffee – physical auction
Auction coffee – futures
Transport coffee

Fair Trade ... how much of the post harvest value chain is Fair Trade?

Export coffee
Insure coffee
Ship coffee
Coffee market futures
Store coffee
Roast coffee
Grind coffee
Package coffee

Fair Trade ... Fair Trade certification fees ... who gets this money and what is it used for?

Wholesale coffee
Transport and distribution
Retail coffee – coffee shop Fair Trade ... higher prices
Retail coffee – store
Consume coffee

The text being discussed is available at

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TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends. TVM is a 'big idea' that has the potential to be a game changer. The goal is for it to remain an open access initiative.

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