Wednesday, July 10, 2019

An OPEC for Coffee: CEO Daily

Our daily brief on must-read business news…and more.

Is this email not displaying correctly?
View it in your browser.

follow
Subscribe
Send Tip
July 10, 2019

Good morning.


Do we need an OPEC for coffee growers? Cartels, of course, distort the market and hurt consumers. In its heyday, OPEC diverted massive amounts of money away from everyone who drove cars to the few lucky nations sitting on oil reserves. But in the case of coffee, the money would flow downhill—to people working on coffee farms and suffering from the lowest prices in decades.


It's not an easy thing to organize. Some 30 countries sell coffee beans, and for a cartel to be effective, most would have to agree to act in unison. Any agreement by coffee buyers, like giants Nestle and Starbucks, to pay higher prices could induce more production. But coffee growers are suffering a world of hurt. If companies have a responsibility to buy from suppliers that pay a living wage, shouldn't they also be responsible for sourcing commodities at a price that doesn't induce starvation?


Coffee growers are encouraged by the fact that cocoa growers from Ghana and Côte d'Ivoire got buyers to agree to pay more for the key ingredient in chocolate. "If they can reach an agreement, why can't we?" said Vanu­sia Nogueira, ex­ec­u­tive di­rec­tor of the Brazil Spe­cialty Cof­fee As­so­ci­a­tion.  


The World Cof­fee Pro­duc­ers Fo­rum will meet in Brazil next week to wrestle with the issue. You can read more here.  And make sure to take a minute to browse Fortune‘s 40 Under 40 List, which is online this morning. Other news below.


ceo_attribution author=”Alan Murray” email=”alan.murray@fortune.com” twitter=”alansmurray”


.


.

Top News


Trump Pledged to Tone It Down on Hong Kong


To get trade talks going again with China, Trump pledged to lighten criticism of Beijing's response to the protests in Hong Kong over a proposed extradition bill, according to the Financial Times. Meeting in Osaka, Japan for the G20, the state department allegedly ordered the departing U.S. consul-general to water down a speech he was giving that mentioned the protests. FT


Airbus Overtakes Boeing 


The grounding of Boeing's 737 Max aircraft presented an opportunity to Airbus: to become the world's largest plane manufacturer, without doing a thing. Boeing held the top spot for seven years, but its deliveries dropped by more than a third in the first half of this year alone as a result of safety fears, with the grounding now stretching to almost four months. Wall Street Journal


Safeguarding the Strait of Hormuz 


The chairman of the U.S. Joints Chief of Staff wants to create an international military coalition in the waters between Yemen and Iran—otherwise known as the Strait of Hormuz, the world's foremost oil chokepoint, which forms the gateway from the energy markets of the Gulf to buyers around the world. The push comes after a series of attacks in the strait on oil tankers this spring, which U.S. officials blamed on Iran. BBC


The Case for Cancelling Student Debt


In this editorial for Fortune, Democratic presidential candidate Bernie Sanders argues canceling all $1.6 trillion of student debt would boost the economy by around $1 trillion over the next decade, creating jobs and giving graduates the financial space to buy homes, cars, and open businesses. Sanders argues the generation that graduated after the financial crisis is still grappling with crippling debt, and that the years after WWII can provide a guide for making education affordable again. Fortune



.

Content From Deloitte

Six Keys to Leadership Success

In an ever-changing business landscape, a leader's ability to adapt and motivate is critical in driving teams to succeed says Steve Kimble, chairman and CEO of Deloitte Tax. He outlines six leadership principles, including positivity and vulnerability.


Read More


.


.

Around the Water Cooler


Jay-Z, the Marijuana Strategist


The rapper, who already has plenty of other careers, said he has signed a multi-year deal with Caliva, a California-based cannabis company. He's not the only big name tied to the brand: the company is backed by $75 million in funding from retired NFL star Joe Montana's venture capital firm. Fortune


TV Shows With Big-Movie Budgets


Wading into the crowded streaming market now comes with a high price tag—so high, in fact, that a series might look more at home alongside big-budget blockbusters than the smaller-scale TV shows of the past. Big studios with new streaming services are shelling out up to $8-$15 million an episode, which over several seasons, can add up to $150 million—the budget of the latest Spider-Man movie. Wall Street Journal 


Charges of 'Moral Harassment' 


Grappling with France's tight labor laws and looking to shrink the workforce by thousands, France Télécom pursued a different strategy than direct layoffs, lawyers say: make life so miserable for employees that they left of their own accord. Instead, at least 35 employees committed suicide, and those former top executives are now on trial in France for "moral harassment." The trial runs until Friday. New York Times


Even the Dutch Are Struggling to Reduce Emissions 


Here's a surprising fact: the Dutch are some of Europe's highest polluters—eclipsing Germany and Poland—due to their industry-heavy Rotterdam hub, aviation, and greenhouse agriculture. But when the country's political parties joined forces to find consensus on reducing emissions, they found some changes—like pushing the power system toward more renewable energy—were much easier than simply getting voters onboard. The Economist 


This edition of CEO Daily was edited by Katherine Dunn. Find previous editions here, and sign up for other Fortune newsletters here.


.
Email Us
Subscribe
share: Share on Twitter Share on Facebook Share on Linkedin
.
This message has been sent to you because you are currently subscribed to Fortune CEO Daily.
Unsubscribe

Please read our Privacy Policy, or copy and paste this link into your browser:
https://fortune.com/privacy/

FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.

For Further Communication, Please Contact:
Fortune Customer Service
225 Liberty Street
New York, NY 10128


Advertising Info | Subscribe to Fortune

No comments:

Post a Comment