The Coffee Industry's Effect on the Brazilian Economy

A. Survey Plan This survey reveals to what extent the coffee industry is responsible for the modernization of the Brazilian economy. This survey focuses on the development of the Brazilian coffee industry and the impact of the coffee industry on the economy. In order to explain in detail the impact of the coffee industry on the Brazilian economy, we must consider how coffee will affect Brazilian business and infrastructure. It is important to understand transition period as sugar of Brazilian main export coffee.

Coffee has a far greater impact on the Brazilian economy. The greater difficulty of coffee production and trade has established a link between departments important in the Brazilian economy. Coffee is the foundation of the economy, accounting for 63% of the country's exports. The Brazilian economy has reached its growth period, but at the same time it faces difficulties and the tendency for overproduction of coffee is also rising. Economic performance and development prospects of many developing countries depend heavily on product issues. (Photius.com, 2004)

The Brazilian economy grew big in the second half of the 19th century. Coffee is the center of the economy, accounting for 63% of domestic exports in 1891, and 51% between 1901 and 1910. However, sugar, cotton, tobacco, cocoa, rubber boom at the turn of this century, rubber is also important. In the first 30 years of the 20th century, the Brazilian economy experienced a growth period, but there were difficulties in the upward trend of World War I, Great Depression and coffee overproduction. The four-year gap between the time to plant coffee trees and the first harvest time will expand periodic fluctuations in coffee prices, which in turn leads to an increase in the use of over-priced government price support I will. In Sao Paulo, price assistance caused excessive expansion of coffee production, eventually leading to large-scale overproduction in the early 1930s.

An important step in Brazil's comprehensive industrialization began with an attempt to solve the economic crisis of the 1930s. Brazilian economy is greatly impaired as it focuses on coffee production. Coffee prices in the international market sharply declined, causing damage to the Brazilian economy. Coffee exports and coffee prices in Latin America sharply declined and the total value between 1930 and 1934 was lower than 48% between 1925 and 1929 (Hofman, 2000). The overproduction capacity of the Great Depression and Brazilian coffee production combined to worsen the national economic situation in Brazil. This situation has solved the Brazilian government for over 10 years. Brazilians are increasingly trying to establish an economic remedy for this problem.