A Crisis in the World of Coffee Essay

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Coffee is the second largest export commodity in the world after oil and is exported from 52 countries in the south. The current crisis has evolved through a series of changes in the industry. Since the liberalization of the coffee market, the price volatility has amplified. The world production of coffee has risen dramatically in the past three years mainly due to the production increase in the two world leading countries Brazil and Vietnam. Vietnam has for example increased production by 1400 % between 1990 and 2000, and Brazil has contributed even more than Vietnam to the global oversupply during the past five years. Both countries also have large numbers of trees in development, which will lead to an overproduction for at least the…show more content…
Coffee is the second largest export commodity in the world after oil and is exported from 52 countries in the south. The current crisis has evolved through a series of changes in the industry. Since the liberalization of the coffee market, the price volatility has amplified. The world production of coffee has risen dramatically in the past three years mainly due to the production increase in the two world leading countries Brazil and Vietnam. Vietnam has for example increased production by 1400 % between 1990 and 2000, and Brazil has contributed even more than Vietnam to the global oversupply during the past five years. Both countries also have large numbers of trees in development, which will lead to an overproduction for at least the next 2-4 years. (Cited: World Bank Agricultural Technology Note 30, “Toward more sustainable coffee”, published June 2002) Main Coffee Growing Regions The main growing regions for coffee are situated almost exclusively in a belt running between the Tropic of Capricorn and the Tropic of Cancer. The principal coffee producing countries in this region are listed below. Brazil By volume, Brazil is one of the world's leading producers and exporters of coffee. Fazenda Vista Allegre is a truly unique coffee with a sweet full-bodied character. It is produced using a slightly different picking method resulting in a complex, interesting coffee. Fazenda is exclusive to Second Cup in Canada. Colombia Colombia is another leading producer of coffee.

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