According to legend, an Ethiopian goat herder discovered coffee. Coffee was a simple food and beverage for African tribesmen. Coffee becomes world wide popular drinks, sold in large quantities worldwide. All coffee exporting countries depend on coffee as the main income and depend on it for their living. 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 three to five years. The income loss is huge considering 15 million trees were lost and had to stop the export of coffee. Importers bought in bulk afraid of the shortage, prices increased and farmers planted more. 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 and sell at an agreeable price.
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