International Coffee Organization-1

In the 19th century, coffee became an important commodity in the international trade market. For a long time after that, the coffee market was often in a state of oversupply, low prices, and occasional price increases in short supply, but for a short period of time.

During the economic crisis of the 1930s and during World War II (1939-1945), the coffee market saw an increase in supply, a decline in demand and low prices. But in the first few years after the war, the demand for coffee increased, exceeding the supply capacity of the market. Between 1950 and 1953, coffee stocks fell below the minimum required by normal trade, which was exacerbated by the outbreak of the Korean War, the drought in Brazil and the ensuing frost. In 1953, the price of coffee rose to an unprecedented high, which led to the massive planting of coffee trees and the overproduction of coffee around the world. In the late 1950s and early 1960s, coffee stocks increased and prices fell sharply. In the face of this situation, governments take the initiative to take measures to stabilize the coffee market and stop the decline in coffee prices. Because the price drop has serious economic and political consequences for many coffee-producing countries in Latin America and Africa.

These two conventions put forward the concept of quota system. Accordingly, when the supply of coffee on the market exceeds the consumption demand, the surplus coffee will not be on the market. In addition, the treaty also produced coffee production and diversification provisions to limit coffee supply as the goal of limiting coffee supply, while coffee promotion activities followed to increase coffee consumption.

The operation of these conventions made coffee prices relatively stable from 1963 to 1972, and coffee production and consumption also achieved a balance. Coffee conventions played a great role in promoting the economic development and international trade cooperation of coffee-producing countries.

Changes in supply and demand patterns led to a rise in coffee prices and the collapse of the quota system in 1973. All economic provisions in the 1968 Convention were abolished. The Coffee Organization continues to serve as a centre for the collection and dissemination of information on coffee, while it is also continuing its efforts in a forum to negotiate a new convention.

The 1976 International Coffee Convention was negotiated in 1975, which was very different from the situation when the first two conventions were concluded. When the first two conventions were reached, there was an oversupply in the coffee market, which led to a drop in coffee prices, and in 1975, Brazil, the world's largest coffee producer, suffered a severe frost, so there were fears that the world coffee market would be in short supply in the near future. this doubt caused the price of coffee to rise sharply. This has affected the member states of the coffee organization. Therefore, when negotiating the 1976 Convention, States not only retained the effective provisions of the previous two conventions, but also introduced some new provisions to strengthen the role of the organization.

One of the main features of the 1976 new convention is to allow the quota to be terminated when the price of coffee is too high and to be re-cited when the price is low. Under this system, the quota system was introduced in 1980. The experience gained in the implementation of the 1976 Convention laid a good foundation for the negotiation of the fourth Convention, which entered into force in 1983.