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Tuesday, April 26, 2016

A Brief History of the World Coffee Industry in the Free Market

Coffee is a beverage that makes billions of people addicted to eating them. And coffee products are in great demand in almost all countries in the world. By industry, since 1990, there is no official body that regulates aspects of the price of coffee so that coffee becomes a free commodity at the market price which is also free. Prior to 1990, the aspects of the coffee market pricing depends on the institution, the International Coffee Organization (ICO). Now, although it had not the same authority, ICO still plays a role in many important things, like putting together a monumental statement about the long history of coffee by countries penghasilnya up in 1990.
Here's a brief history of the coffee industry in various countries until 1990, before and after changes in pricing policies coffee set in tight regulation of the organization.

The decline in Coffee Production in Africa

While many specialty coffee from Africa, this continent is the only one that experienced a decline in coffee production significantly. Before 1990, African countries are able to produce 19.1 million bags per year, or about 25% of world coffee production. However, after 1990, that number dropped to only 15.8 million bags per year. This number has not changed much until now, with the average amount of production is only around 16 million bags.
From various African countries, only Ethiopia, Tanzania, and Uganda who consistently maintain and even slightly increase the amount of supply of coffee. Congo, Ivory Coast, Kenya, Madagascar, and Cameroon has decreased quite dramatically in the last decade. It is caused by various factors, such as coffee trees whose age is old so unproductive, bureaucratic problems and conflicts that hit some areas.

Significant Improvement of Coffee Production in Another Continent

In contrast to Africa, the continent of Asia (including the Middle East) and the USA (especially Guatemala, Peru, and Brazil) showed an increase in the number of coffee production significantly. The demand for specialty coffee origin countries on this continent more and more. One that stands out is Brazil, which has increased almost 100% since 1990, as well as the number of Indonesian coffee production doubled since the same year. Moreover, Indonesia has supported a variety of programs to introduce specialty coffee origin of the various regions each of which has its own characteristics.
Meanwhile, based on the varieties of coffee, Robusta coffee has increased almost 100% in terms of total production compared to Arabica. Among the various coffee producing country, Vietnam is a country that has the highest number of shares Robusta production in the world. Meanwhile, the number of Arabica production is instead somewhat lower than in the era prior to 1990. In addition to climatic factors (Arabica is more prone diseases and the climate than Robusta), the demand for high-quality Robusta is also growing.

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