Brazil has been known for their coffee for decades. What most
people don't know is that years ago in 1880 a boom/bust cycle was put into
motion in this country's coffee crop. Because this is a cash crop, (meaning the
crop's sole purpose is to return a profit), the country can grow large amounts
and see immediate profit. When America and Europe couldn't buy all the coffee
Brazil was harvesting there was a huge economical crash that shook not only
Brazil, but other countries as well. In fact, the stock market crash of 1910
followed closely behind the coffee market crash.
The president of Brazil, Getulio Vargas,
decided that the only way his country could bounce back from this devastating economic
collapse was to burn the excess crops of beans. This would in a way, restart
the market and give farmers an edge again. Unfortunately, this did not work as
President Vargas had hoped.
Around the time Brazil was desperately
needing to sell its quality coffee, America came up with instant coffee. Coffee
only by name (it was made more from coffee flavored powder than actual roasted
beans) became popular in America by the Navy's advertisement in World War II.
The Navy created a buzz with its "Cup 'o Joe" slogan. "Joe"
was every sailor's friend, he helped them stay awake long hours on watch. He
helped them stay warm while running training exercises on a windy deck in the
middle of the Pacific. Every sailor needed a "Cup 'o Joe". This
created a market in which advertising became more important than taste.
Though Brazil was growing coffee by the
truckload, America used less real coffee, and more coffee substitutes. Brazil
wouldn't see an upswing in the market until 1950.
While the coffee in America grew more
tasteless, the advertising became more enticing. Folgers used the lovable
character, "Mrs. Olson", in their commercials, ensuring women their
husbands would love their coffee (and them) so much more when they used Folgers
Mountain Grown.
At this time Sanka, the very first
decaffeinated, coffee came on the market. Instead of drinking coffee to stay
awake, people could now drink coffee to relax.
Finally in 1950, due to terrible weather
conditions in Brazil, coffee prices soared. This prompted a congressional
hearing in America. Officials met to discuss the effect of coffee on the
economy. It was resolved that coffee was no longer just a commodity, instead, it
represents the lives of millions of people.
This ignited a windfall of questions. How
can we better protect the farm from which our coffee comes from? How can we
ensure the farmer is able to do his job? How can we get the best coffee for the
best price without taking away from the lives of those who cultivate and
prepare the green beans?
Join us next time when we discuss how the
boom/bust cycle of coffee came to be and the crop's market value throughout the
years.