According to legend, an Ethiopian goatherd first discovered coffee. In the past, coffee was a simple food and beverage for African tribesmen. Now, it is sold in large quantities worldwide as one of the top in value in trade. All coffee exporting countries depend on coffee as the main income and many people depend on it for their living. Millions of people drink a lot of coffee. In 1975, a frost killed almost half of Brazil’s coffee trees which changed the prices drastically. In 1979, frost hit Brazil again. Every tree lost result in no income for a three to five years and the income loss is huge considering 15 million trees were lost. Brazil had to stop the export of coffee. Importers bought it in bulk afraid of the shortage. Prices increased and farmers planted more until coffee was in abundant and the prices fell. Farmers began substituting coffee for other crops. Both producers and consumers decided to limit production to what the market can absorb, have a reserve and sell at an agreeable price.
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