As industrialization took hold, railways (including those operated by the famous Mogiana Railroad Company, whose name “Mogiana” is still applied to coffee grown in Sao Paulo state) were installed improving efficiency of transportation, and the transatlantic telegraph cable’s connection to Brazil allowed coffee traders to track the markets in New York and London in real time. By the turn of the twentieth century, Brazil was the undisputed leader in global production and export volumes.
A large amount of Brazilian coffee is consumed internally, as no green coffee can be imported into the country. Consumption is on the rise and is now comparable to that of the U.S. According to the USDA agricultural site, Brazil consumed roughly 3 billion lbs internally, and the U.S consumed 3.4 bi In the middle of the 20th century, the price of coffee became an increased concern vis-à-vis maintaining stability and profitability for rural coffee farmers who might otherwise be tempted into supporting communism. This concern eventually led to an International Coffee Agreement (ICA) that was in effect in some form or another from the early 1960’s until 1989, and primarily served to institutionalize export quotas, largely limiting Brazil’s output volume thereby increasing and stabilizing global prices.
The ICA’s collapse, directly coinciding with the dissolution of the Union of Socialist Soviet Republic, might have many interpretations depending on the perspective, but its outcome was singular. Coffee prices crashed for the following decade as a deluge of Brazilian coffee suddenly flooded the market.
In Brazil, as in many other growing regions, the emergence of specialty coffee offered a potential solution for a few privileged growers with access to market and blessed with favorable growing conditions to produce higher quality beans. In Brazil, unlike in many other countries, the ubiquity of mechanized production affects the global perception of cup quality, to the extent that even the best Brazilian beans rarely rival other countries’ “better than Fair Trade” prices.