Definition: Coffee is a widely consumed beverage prepared from roasted seeds, commonly called beans, of the coffee plant. Coffee was first consumed in the 9th century, when it was discovered in the highlands of Ethiopia. From there, it spread to Egypt and Yemen, and by the 15th century had reached Persia, Turkey, and northern Africa. From the Muslim world, coffee spread to Italy, then to the rest of Europe and the Americas.Today, coffee is one of the most popular beverages worldwide.

Coffee berries, which contain the coffee bean, are produced by several species of small evergreen bush of the genus Coffea. The two most commonly grown species are Coffea canephora and Coffea arabica. These are cultivated in Latin America, southeast Asia, and Africa. Some controversy is associated with coffee cultivation and its impact on the environment. Once ripe, coffee berries are picked, processed, and dried. The seeds are then roasted, undergoing several physical and chemical changes. They are roasted to various degrees, depending on the desired flavor. They are then ground and brewed to create coffee. Coffee can be prepared and presented by a variety of methods.

Coffee has played an important role in many societies throughout history. In Africa and Yemen, it was used in religious ceremonies. As a result, the Ethiopian Church banned its consumption until the reign of Emperor Menelik II of Ethiopia. It was banned in Ottoman Turkey in the 17th century for political reasons, and was associated with rebellious political activities in Europe. Coffee is an important export commodity for many countries: in 2004, coffee was the top agricultural export for 12 countries; and in 2005, it was among the world's top fifteen legal agricultural exports in value. Many studies have examined the relationship between coffee consumption and certain medical conditions, but whether the effects of coffee are positive or negative is still disputed.

 

Economics
Economics of coffee
Coffee ingestion on average is about a third of that of tap water in most of North America and Europe. Worldwide, 6.7 million metric tons of coffee were produced annually in 1998–2000, and the forecast is a rise to 7 million metric tons annually by 2010.

Brazil remains the largest coffee exporting nation, but in recent years Vietnam has become a major producer of robusta beans. Robusta coffees, traded in London at much lower prices than New York's arabica, are preferred by large industrial clients, such as multinational roasters and instant coffee producers, because of the lower cost. Four single roaster companies buy more than 50 percent of all of the annual production: Kraft, Nestlé, Procter & Gamble, and Sara Lee. The preference of the "Big Four" coffee companies for cheap robusta is believed by many to have been a major contributing factor to the crash in coffee prices, and the demand for high-quality arabica beans is only slowly recovering. Many experts believe the giant influx of cheap green coffee after the collapse of the International Coffee Agreement of 1975–1989 led to the prolonged price crisis from 1989 to 2004. In 1997 the price of coffee in New York broke US$3.00/lb, but by late 2001 it had fallen to US$0.43/lb.

The Dutch certification system "Max Havelaar" started the concept of fair trade labeling, which guarantees coffee growers a negotiated pre-harvest price. In 2004, 24,222 metric tons out of 7,050,000 produced worldwide were fair trade; in 2005, 33,991 metric tons out of 6,685,000 were fair trade, an increase from 0.34 percent to 0.51 percent. A number of studies have shown that fair trade coffee has a positive impact on the communities that grow it. A study in 2002 found that fair trade strengthened producer organizations, improved returns to small producers, and positively affected their quality of life. A 2003 study concluded that fair trade has "greatly improved the well-being of small-scale coffee farmers and their families" by providing access to credit and external development funding and greater access to training, giving them the ability to improve the quality of their coffee. The families of fair trade producers were also more stable than those who were not involved in fair trade, and their children had better access to education. A 2005 study of Bolivian coffee producers concluded that Fairtrade certification has had a positive impact on local coffee prices, economically benefiting all coffee producers, Fairtrade certified or not.