INTRODUCTION: World coffee production is expected to increase by 12 per cent next season to a record 94.2 million bags, according to a United States Agriculture Department forecast.
GV PAN Coffee plantation on hillside near Petropolis.
SV & CU Coffee trees with red coffee beans growing. (4 SHOTS)
SV & CU Workers picking coffee beans by hand. (3 SHOTS)
GV Beans lying in sun to dry.
SV Man raking beans.
GV Ship 'Lloyd Hamburgo' in Rio de Janeiro port.
SV & GV Sacks of coffee at dockside and being lowered into hold of ship. (3 SHOTS)
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Background: INTRODUCTION: World coffee production is expected to increase by 12 per cent next season to a record 94.2 million bags, according to a United States Agriculture Department forecast. The news has led to a dramatic drop in prices, causing alarm in coffee-producing countries.
SYNOPSIS: In Brazil, the world's major coffee producer, the crop is expected to increase this year by about 50 per cent to an estimated 32 million bags - a bag being 60 kilograms (approx 132 pounds). One reason for this year's remarkable harvest which began in late May, is that bushes planted to replace those destroyed in the frosts of 1975 have now matured. In that year three quarters of the Brazilian crop was destroyed, creating of world shortage which led to a ten-fold rise in prices over the next two years. But this year,with the expected large surplus, prices have already dropped to their lowest level in five years.
World producers are now taking action to halt the slide.The International Coffee Organisation (ICO) held an emergency session recently at which it stopped exports of 1.4 million bags for a month. Prices recovered slightly, but some traders criticised the action as ineffectual and demanded more drastic measures.