History

• In 1963, as world governments attempted to stabilize the coffee market, the United Nations formed the International Coffee Organization (ICO). According to the ICO, coffee prices in 1953 spiked because of short supply. Higher prices encouraged more planting. More planting led to oversupply and prices dropped by the late 1950s. By the early 1960s, the coffee market crash left farmers unable to recover costs.

Major Players

• By far, Brazil is the world's largest coffee producer. In the 2009-10, the country grew almost 33 percent of the world’s coffee. The United States and Brazil consume the most coffee each year.

Significance

• The ICO estimates that 25 million families worldwide make a living growing coffee. Coffee plays a significant role in the economies of major coffee-producing nations.

Prices

• Between 1998 and 2009, average coffee commodity prices generally ranged between $1.09 and $1.16 per pound. However, they reached a high of $1.24 in 2008 and a low of 46 cents in 2001. As of September 2010, ABC World News reports that coffee demand has outpaced supply and that coffee prices hit a 13-year record high, $1.90 per pound.