Performance of Coffee Industry in Brazil

PERFORMANCE OF COFFEE INDUSTRY IN BRAZIL

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Performance of Coffee Industry in Brazil
Introduction
Brazil is the world’s largest coffee producer. It produces approximately twenty five percent [25%] of the world’s total supply of the commodity. It has dominated this position for the last over hundred and fifty years [150]. Eighty percent [80%] of the coffee from Brazil is the Arabica coffee with the remaining percentage being the Robusta type. The Brazilian climate is very ideal for coffee growing with favorable soil type that supports coffee growing. Approximately twenty seven thousand kilometer squares of the country are under coffee plantations with approximately six billion coffee stems all over the nation. Due to suitable landscapes, climate and rich soils the states of Sao Paulo, minas, gerais and parana are the country’s leading producer of coffee. Coffee industry involves some three point five million people in the country mostly in the rural areas. Coffee industry on average provides gainful employment to over seven million people across the country either directly or indirectly.
In order to understand the performance of the coffee industry in Brazil in the recent past it is important that we seek to understand and familiarize ourselves with the past trends in production consumption as well as export of the Brazilian coffee in both the domestic and its international market. This provides a suitable basis for our comparison. A number of events trends and happenings have occurred in Brazil in the past that has greatly shaped the Brazilian coffee industry and defined its place in the world market, (Daviron, 2005).
In 1880s there was what was popularly known as the coffee cycle in Brazil. Prior to this period the slaves provided free labour in coffee estates as well as in other crops estates. However there grew calls for the free voluntary labour and this

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