Tuesday, August 18, 2009

Summary Package 3

According to legend, an Ethiopian goatherd noticed his flock of sheep munching on coffee cherries. He did the same and after sampling a few. In the past, coffee is the food and drink for American tribesman. Now it is sold around the world and it is one of the most traded items. Many people depend on coffee as income and drink them a lot. In 1975, a frost damaged most of the coffee trees and price raised. 4 years later, frost strike again. Income for the next 3 to 5 years is lost. Brazil stopped shipping coffee and traders bought a lot of them fearing shortage. When price rises, farmers tear up their plants and put in more stable crops. Both consumer and producers decided to limit the production of coffee and prepare a reserve. Both side had also came up with an agreeable price.

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