This essay explores the question of how digital technologies can help to solve human rights abuses in the coffee supply chain. First, a brief outline of the coffee supply chain is given as an example. Then, in a second section, the prevailing problems and hurdles in coffee production are illustrated. The third section then looks at possible solutions. Besides a brief mention of the new German supply chain law, blockchain technology is presented as a possibility for a more sustainable supply chain in the view of a human right perspective. In conclusion, the final chapter draws upon the entire topic and summarizes the discussed points.
Coffee is one of the most consumed beverages in the world and is considered one of the most important goods in world trade. Thereby, coffee is one of the most traded commodities after oil. Every year, around 168 million bags of green coffee are harvested and sold worldwide. According to estimates, there are about 12.5 million coffee plantations worldwide. A total of about 25 million people are involved in coffee cultivation, processing and trade. 74 percent of the coffee grown worldwide is exported. The largest exporter of green coffee is Brazil with a market share of 40 percent.
The coffee industry is worth 200 billion dollars. However, only less than 10 percent of the money remains in the producing countries. As the coffee industry is one of the so-called buyer-driven businesses, the difference in distribution is very strong. Smallholder farmers in particular have a small share and face particular challenges. But how can these inequalities be adjusted? How can the supply chain be made sustainable and fair?
Table of Contents
1. The Coffee Supply Chain
2. Supply chain problems
3. The German Due Diligence Law as a remedy?
4. Blockchain as a digital end-to-end solution
Objectives & Research Topics
This work aims to evaluate how digital technologies, specifically blockchain, can contribute to addressing human rights abuses and increasing sustainability within the global coffee supply chain.
- Current challenges in the coffee industry (child labor, low wages, environmental degradation).
- The mechanisms of the coffee supply chain and its global dependency structures.
- The limitations of existing legal frameworks such as the German Supply Chain Act.
- The potential of blockchain technology to provide transparency, traceability, and accountability.
- Case studies and practical applications of digital solutions for fair wage and labor conditions.
Excerpt from the Book
Supply chain problems
The coffee sector is a workplace for a great number of people. For this reason, it is essential that the coffee industry delivers a humane and sustainable working environment. But is that the case?
Various investigations report human rights violations in coffee supply chains. Large corporations such as Nespresso and Starbucks are also affected. In 2020, for example, investigations revealed that children were picking coffee cherries on coffee plantations in Guatemala, which also supply Starbucks. This case of child labour made headlines (The Guardian, 2020). According to the report, the plantation was also part of the supply chain for Nespresso. Additionally, in 2021, it came to light that there were several violations of fair wage payments on plantations in Brazil. These are part of a pattern of violations and human rights abuses in different farms (Camargos, 2021).
The coffee sector is particularly relevant from a human rights perspective. More than 100 million people depend in some way on the coffee industry for their livelihoods (Miatton & Amado, 2020, p. 1). However, only a fraction of the 200 billion US dollars that are sold remain in the producing countries and thus with the local farmers. On closer inspection, it is even the case that despite an increasing demand for coffee, the price of coffee has fallen by 2/3 since the 1980s, which has virtually halved farmers' incomes since then. As a result, people cannot freely live their fundamental human rights. This affects education, health care and infrastructure development, among other things. In many cases, this leads to dependencies and potential exploitation of people (Szeponik & Much, p. 4).
Summary of Chapters
1. The Coffee Supply Chain: This chapter provides an overview of the complex journey of coffee from cultivation and harvest to final sale, highlighting the role of smallholders and intermediaries.
2. Supply chain problems: This section details the critical social, economic, and environmental issues in the industry, including human rights violations, dependency, and child labor.
3. The German Due Diligence Law as a remedy?: This chapter analyzes the effectiveness of new legal regulations in addressing complex supply chain issues and notes their current limitations.
4. Blockchain as a digital end-to-end solution: This section explores how decentralized ledger technology can enhance transparency, traceability, and fairness in the industry with practical examples.
Keywords
Coffee Supply Chain, Human Rights, Sustainability, Blockchain, Digital Innovation, Transparency, Traceability, Child Labor, Smallholders, Due Diligence, Economic Dependency, Fair Wage, Supply Chain Management, Agriculture.
Frequently Asked Questions
What is the core focus of this work?
The text examines the systemic human rights and sustainability challenges in the global coffee supply chain and investigates how digital technologies, particularly blockchain, can help alleviate these issues.
What are the primary thematic areas covered?
The work covers global market dependency, social and labor issues like child labor and poverty, environmental impacts, legal frameworks, and digital transformation in agriculture.
What is the main objective or research question?
The primary research question is how digital technologies can be utilized to solve human rights abuses and improve transparency and fairness within the coffee supply chain.
Which scientific methods are employed?
The author uses a descriptive and analytical approach, synthesizing existing literature, research reports, and case studies to evaluate the effectiveness of blockchain as an end-to-end solution.
What topics are discussed in the main body?
The main body addresses the structure of the coffee supply chain, current prevalent problems in production, potential solutions through legislation, and the technical application of blockchain technology.
Which keywords characterize this work?
The work is defined by terms such as coffee supply chain, human rights, blockchain technology, transparency, sustainability, and traceability.
How does the German Supply Chain Act impact coffee producers?
The Act creates new due diligence requirements for larger companies, though the author notes that its current scope may not fully address violations occurring at the very beginning of the supply chain.
What role does blockchain play for smallholder farmers in Rwanda?
In Rwanda, blockchain is utilized by the INATrace technology to store supply chain data, allowing farmers to gain visibility, verify prices, and ultimately increase their income through verified traceability.
- Citation du texte
- Maximilian Scheller (Auteur), 2022, Using Blockchain for a More Sustainable Coffee Supply Chain. A Human Rights Perspective, Munich, GRIN Verlag, https://www.grin.com/document/1359349
