STiR coffee and tea magazine

STiR coffee and tea 25 Confirmed speakers: Secure your place: www.ami.ltd/event-capsules Connecting industry professionals to explore the latest developments and trends in the single-serve capsules industry Headline sponsor Event also sponsored by: Supported by: Martyna Fong AMI Carel Rouweler CAPPAC Viju Vasishta PA Consulting consumption at the time, were dissolved. When coffee prices dropped as a result of oversupply in the immediate aftermath of the end of the economic clauses of the Agreement, many national coffee sectors stalled," writes ICO. The Côte d'Ivoire was a notable ex- ception. Liberalization increased produc- tion rates, and its coffee sector expanded until the civil war broke out in 2002, halt- ing coffee production. Quantity vs Quality A few countries have managed to take advantage of liberalization. Brazil has in- creased production rates since 1989 and maintained its position as the world's largest coffee producer, currently con- trolling 39% of the market. From 1989 to 1994, Brazil greatly reduced tariffs and non-tariff barriers (NTB) and joined the Mercosur trade agreement. During this period, the country's smallholder farms became more marginalized as the country focused on large-scale estates, low labor costs, and high production volumes, em- phasizing quantity over quality. After the dismantling of the coffee quota system, global production rates skyrocketed, and coffee prices plummeted. Source: World Bank 2017 Crop years Total consumption* Total production African Production *Consumption for importing countries on coffee year basis Global Demand and Supply Balance 160 140 120 100 80 60 40 20 0 million 60-kg bags 1965/66 1970/71 1975/76 1980/81 1985/86 1990/91 1995/96 2000/01 2005/06 2010/11 2015/16 Arguably, the greatest post-deregulation success story is Vietnam. In 1986, the country enacted a series of economic reforms called Doi Moi that centered around a socialist-oriented market economy that allowed private companies to move into pro- ducing goods like coffee. In 1990, Vietnam was responsible for 1% of the world's coffee exports. Now, it's ranked number two globally, commanding between 17-20% of the market.

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