Value Co-Creation in the Specialty Coffee Value Chain: The Third-Wave Coffee Movement

Abstract

Brazil represents approximately 29% of the world’s coffee exports, with 15% of that being "specialty coffee." Most Brazilian coffee exports are composed of commoditized green beans, influencing the value chain to be grounded on an exchange paradigm. This scenario started to change with the introduction of specialized coffee shops, coffee capsules for home consumption, and demand for a more artisanal product. A paradigm of value creation along the chain drives production processes that aim to differentiate products through superior coffee beans and unique experiences. This study was developed through content analysis of 15 years of news collected from two Brazilian newspapers. Additionally, we interviewed owners of coffee shops, coffee producers, cooperatives, intermediaries, and regulators. We concluded that the value chain faces challenges in reaching higher value-in-use creation for all involved actors.

Analytic Framework to Determine Proximity in Relationship Coffee Models

“…The main objective of this article is to propose an analytic framework to study proximity of actors along coffee value chains. Among others, we draw on Boschma () and proximity literature (Rallet and Torre ; Torre and Rallet ; Torre ; Balland et al ; Dubois ) and connect it to relationship coffee literature (Borrella et al ; Holland et al ; Fischer ; MacGregor et al ; Boaventura et al ; Hernandez‐Aguilera et al ; Vicol et al ). There is no clear definition among roasters what relationship coffee should be (MacGregor et al ).…”

“…Thus, the benefits of increased consumer awareness and the resulting willingness to pay a higher price go rather to the roasters/coffee shop owners than to producers (Fischer ). Boaventura et al () argue that closer collaboration of producers with upstream value chain actors could conquer this difficulty. To establish close relationships along the chain, it helps when value chain actors have advanced knowledge of each other’s practices and products.…”

“…The second wave was driven by the US‐American roasters Peet’s and Starbucks and the coffee sector became more differentiated by quality. In the third wave, coffee is sold as an artisanal product, differentiated by quality, origin, specialty roasting, preparation, or some form of social and/or environmental sustainability promise (Borrella et al ; Boaventura et al ). It is important to notice that these developments occur in the world of specialty coffee.…”

“…The coffee literature (i.e., Boaventura et al ) explains that an increase of farmers’ expertise in coffee production, processing, preparation, consumption and consumers’ quality perceptions improves the quality of the product, farmers’ bargaining position and following this, their income. Vice versa, the education of buyers and consumers about coffee, production conditions and the producers themselves is important to create mutual understanding (Boaventura et al ). Therefore, our framework considers the dimensions: Differences and similarities of actors’ knowledge bases (production, processing, preparation, consumption), Forms of knowledge exchange and learning. …”

Classification of Robusta Coffee Fruits at Different Maturation Stages Using Colorimetric Characteristics

“…The commercial value of coffee is directly related to the beverage quality (Boaventura et al, 2018;Guimarães et al, 2019). Fruit ripening at harvest influences the physicochemical attributes of grains and, consequently, their quality (Borges et al, 2002;Fagan et al, 2011).…”