Coffee and Latin America

http://e360.yale.edu/digest/latin-america-could-lose-up-to-90-percent-of-its-coffee-growing-land-by-2050.

Latin America Could Lose Up to 90 Percent of its Coffee-Growing Land by 2050

I chose to read this short article because it relates to a subject the intrigues me – Economics.

Latin American countries currently produce most of the coffee consumed worldwide, with Colombia and Brazil being the leading producers. Both Arabica and Robusta beans are produced throughout Latin America. Second, in total coffee production, Columbia in contrast to Brazil is known for its high-altitude coffee estates

Coffee is not just a drink. It’s a global commodity. As one of the world’s most traded products-second in value only to oil-the coffee industry employs millions of people around the world through its growing, processing and trading. But while the coffee trade is vital to the politics, survival and economies of many nations in Latin America.

As a note I would like to add that coffee accounts for nearly half of the total net exports from tropical countries and is representative of the economic and agricultural issues that  latin  countries face today. There was a crisis once in 2001, coffee prices had fallen to their lowest levels ever, totaling less than one third of their 1960 levels. This fall in prices has impacted more than 25 million households in coffee-producing countries and has undermined the economic sustainability of countries in Latin America, Asia and Africa.

If just the fall in price could have such a great effect , what would the effect be on the economy of Latin America when they won’t be able to produce a product that was a source of the daily livelihood of millions of people?

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