Brazil losing revenue on coffee

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Coffee consumption was multiplied by five in the last 100 years.
Brazil, which once dominated 80 per cent of this sector, had a
timid growth performance...

Coffee consumption was multiplied by five in the last 100 years. Brazil, which once dominated 80 per cent of this sector, had a timid growth performance and opened up the international market to new players. By reducing coffee output throughout the century with hopes that prices would go up, the Brazilian government actually gave room for other countries to fill the gap with their coffee, reports Gazeta Mercantil​. Until the 1970s, coffee accounted for 60 per cent of Brazil's export revenue. Nowadays, the product accounts for only four per cent. Due to the recent coffee retention plan, which restricted supply of the grain, Brazil lost $400m and the country's participation in the global market fell from 27 per cent in 1999 to 21 per cent in 2000. In addition, rather than helping give coffee prices a boost, the grain's quotations actually fell 40 per cent on the New York Stock Exchange. Source: Gazeta Mercantil

Related topics: Market Trends

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