Of the world’s coffee production, 15% takes place on coffee plantations of more than
50 hectares. The majority (70%) is grown on farms of less than 10 hectares (Fitter and
Kaplinsky 2001). Production requires little machinery or other long term investment, but a
great deal of labour, not only for the harvest but also for planting the trees, for the elimination
of weeds and for fertilising. Although average costs can be reduced by expanded land use and
a combination of vehicles and labourers, there is generally less scope for economies of scale
in coffee production than there is for products such as potatoes and wheat, where machines
can take over much of the process. This may be an explanation as to why so many production
units are still very small in size.