Coffee rust disease is the greatest threat to the coffee industry worldwide and has the potential

1000 WordsApr 23, 20194 Pages
Coffee rust disease is the greatest threat to the coffee industry worldwide and has the potential to improve or hurt Brazil’s economy while having a significant impact on the United States. Coffee is second only to petroleum for exports in developing countries. Over 500 billion cups of coffee are consumed globally each year. The worldwide coffee supply comes primarily from Central and South America accounting for 67 percent of production (Goldschein, 2011). Coffee rust disease is a wind-borne fungus that spreads quickly. Once infected, crop yields are significantly reduced (Arneson, 2000). In their annual reports from recent years, Starbucks and Dunkin’ Donuts both list increases in coffee commodity prices and shortages due to increased…show more content…
As the coffee industry in Brazil grew so did the infrastructure of the country. By the 1900’s coffee made up 70 percent of exports from Brazil. The increased productivity led to an excess in the market that coupled with diminished demand caused a Brazilian depression and created discontent with the current political system that led to dictatorship control (E, 2008) (The Library of Congress, 2010). With the emergence of a more democratic political system and deregulation other crops developed as important exports. This was further encouraged by the government due to a need to have a more diversified economy (The Library of Congress, 2010). Even with shifting production to other crops Brazil remains an important part of the world’s coffee supply as shown in figure 1. Figure 1 Worldwide Coffee Exports November 2013 (Statista, 2014) The coffee grown in Vietnam is Robusta leaving Brazil and Columbia as the two largest sources of Arabica. Brazil has the largest market share of all coffee production and the largest share of Arabica production. Arabica coffee plants are more susceptible to coffee rust disease (International Coffee Organization). In 1869 an outbreak occurred in Ceylon, present day Sri Lanka. This outbreak affected 90 percent of their crops and shifted their production to tea. Britain, a major coffee importer and grower in Ceylon at the time, shifted their

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