The international history of coffee industry introduces how the bubble of Brazilian coffee economy ended.
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The bubble economy caused by coffee occurred in Brazil at the beginning of the 20th century.
The price collapsed due to the mass production of coffee
Large-scale coffee production in Brazil began in the 19th century. Coffee is grown in Rio de Janeiro, Minas Gerais, S ã o Paulo and traded everywhere.
Brazil has become a coffee exporter affected by slavery and cultivation, but it will be difficult to enter the 20th century. Due to unplanned overproduction, supply far exceeds demand. Led to a rapid drop in the price of coffee.
Hold a coffee production conference
In Latin America, coffee-producing countries, including Brazil, chose representatives in 1901 and held the International Coffee Congress in New York.
The meeting lasted for a month and discussed the production and consumption of coffee. Before entering World War I, coffee accounted for 90% of crops produced in Brazil, many of which were exported to the United States.
Universal Coffee abstinence Law during World War II
During the world war, allied soldiers solved their mental fatigue by drinking coffee, and they finally survived the fierce battle. Because there is no time to make regular coffee, the newly developed "instant coffee" has become popular. The allies who increase the demand for coffee will require the participation of the Brazilian allies, "conditional purchase of extra coffee", which is so superfluous for coffee sales.
The repeal Act was promulgated and implemented in the United States in 1920. In the United States, where many people like to drink, they choose coffee as a substitute. Because the United States imports a lot of coffee from Latin American countries.
The end of the Great Depression and the coffee bubble
However, the coffee bubble did not last long. The Great Depression hit by the coffee consumer in 1929, when the coffee bubble burst and the price of coffee had fallen to less than half its price.
Coffee growers in Brazil have successively lost their jobs and the labor force has been greatly reduced. The surplus coffee beans in this country should follow the way of burning and dumping at sea.
It has been several years since the coffee foam started from overproduction.
As mentioned above, a large amount of coffee was produced in Brazil and the coffee bubble was ushered in, but it collapsed within a decade.
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