Summary on Coffee

According to legend, an Ethiopian goatherd skipped around after eating coffee cherries when he saw his goats doing the same after eating the cherries. Coffee was a simple food and beverage for African tribesmen. However now, it is sold in large quantities worldwide and one of the top in value in trade. Furthermore, all coffee exporting countries depend on coffee as the main income. Many people depend on it for their living and drink coffee a lot. A frost killed almost half of Brazil’s coffee trees which changed the prices drastically.The frost hit Brazil again. Every tree lost result in no income for a three to five years. Furthermore,the income loss is huge considering 15 million trees were lost in Brazil. Thus, it had to stop the export of coffee .Importers bought it in bulk as they were afraid of the shortage. Prices increased and farmers has to plant more.Therefore, coffee was in abundant and the prices fell. Farmers began substituting coffee for other crops.Both producers and consumers decided to limit production to what the market can absorb.They also have to reserve and sell at an agreeable price.