Evening star., 1925-03-05
CHEAPER COFFEE
NOW PREDICTED
Brazilian Traders Anxious to
Sell Holdings as Big
Crop Looms.
BY j. c. RoYLE.

Special Dispatch to The Star.
NEW YORK, March 6.-The Co.,
00.000,o00 cups of coffee which viii
be consumed in the United States this
year probably will not cost as much
per cup as was the case in 1924. The
reason is that Brazilian coffee men
are showing a greater inclination to
market their holdings This is due,
according to dispatches from Santos,
TO an anxiety over the curtailment in
demand from actual consumers and TO
the fact that producers now are talk
ing of an 5000. .0O0-bag crop.
Ample World supply.
No keener traders exist, according to
American business men, than the Bra
lillian coffee planters and brokers.
They took full advantage last year OF
the political uprising in Sac Paulo,
whence most of the coffee sent to the
United States originates. After the
revolt was ended, the federal restric-
tions on the export OF coffee were re-
moved. But they were replaced by
state restrictions, which regulated the
amount shipped, and kept the price
up. Stocks became short in some sec
tions of the United States, and retail
prices rose sharply. At the same time
stories of crop damage were widely
circulated.
will be an ample supply for world
needs and the prospect of damage to
the next crop Is growing less each
day as the time draws on toward
July /, the opening of the new crop
year.
Slump in Consumption.
There has been curtailment in con-
sumption as a result of high coffee
prices, and the Brazilian traders are
too shrewd to check sales of their
products.
These facts incline well informed
experts to predict that prices are not
likely to show any great advance
They admit, however, that the sta
tistical position OF coffee is very
strong, that the carry-over will be
comparatively light and the world
needs will be large.
In 1924 the per capita consump-
ton, according to the Department
of Commerce, was 1888 pounds. This
would mean that at least 17,5Os,6Oo
pounds must be added to imports this
year to supply the normal expected
increase in population. Imports last
year totaled 1,419.S23,604 pounds. The
larger part of this came from Brazil.
The Central American coffee growing
countries ship the larger part of their
coffee to Europe as its flavor does not
appeal to American consumers as
much as that Of the Brazilian beans.
The sale here of Venezuela and Co
lombia coffees is increasing and
small amount from Hawaii and Porto
Rico will find it's way into the Amer
lean coffee pots this year.
Check on High Prices.
The check imposed by high prices
is evident when it is realized that
consumption for the first half of 1924
was at the rate of 1890 pounds per
person while the average for the
whole year was 1888. Consumption
of tea also slumped decidedly. About
100000 pounds less was consumed
than in 1923, the per capita rate
falling from 80 pounds to 81. The
price of tea also has advanced quite
sharply.
The cost of the sugar which is
stirred into either beverage in the
next nine months seems unlikely to
be higher than at present. The Cuban
crop promises to exceed that of a
year ago by about 13 per cent and
undoubtedly will be the largest ever
grown Consumption undoubtedly
will be larger than last year since
lower prices inevitably give impetus
to buying.
Higher Sugar Unlikely.
Even If consumption should ad-
vance 10 per cent, liberal estimate,
II would not take care of added pro-
duction Stocks at Cuban ports are
about Is per cent higher than at this
time year ago and the peak of
production will be reached this
month. The supply undoubtedly will
he large enough to make any price
advance during the Summer unlikely,
and in the Autumn, the beet sugar
production will serve to check any
unusual advance due to Cuban ef-
forts. 1t is still too early to esti-
mate American Beet Sugar produc-
tion, but several European govern
ments are using every effort to foster
cultivation of beets by subsidies and
tariff protection.