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The rate of growth in global coffee consumption has been falling behin
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Updated on: 03 Jun 2024, 12:54
Updated on: 03 Jun 2024, 12:54
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The passage is based on a document published in 2005.
The rate of growth in global coffee consumption has been falling behind the rate of growth in global production, creating a scenario of recurring price crises that take a heavy toll on coffee producing countries. Programs to expand coffee consumption in coffee producing countries can improve the situation and make the cyclical crises less acute.
In mature markets, costs to increase consumption are probably higher than in emerging markets, such as Brazil, the largest coffee producer. The case of Brazil shows that probably the highest returns for institutional investments to develop coffee consumption are to be found in the emerging markets of coffee producing countries. A Brazilian institutional investment valued at US$25 million in 10 years brought about an increase in yearly coffee sales worth 40 times as much. Promotion of coffee consumption in coffee producing countries is likely to represent the best investment of scarce promotion resources because of this multiplier effect. There are huge gaps in per capita consumption between Brazil and many other smaller producers, some (such as Indonesia) with large populations.
It is often argued that the Brazilian promotion program worked only because there was a marked income increase within the same period. But income increases alone, without promotion, are not sufficient to increase coffee consumption. Actually, for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing.
The rate of growth in global coffee consumption has been falling behind the rate of growth in global production, creating a scenario of recurring price crises that take a heavy toll on coffee producing countries. Programs to expand coffee consumption in coffee producing countries can improve the situation and make the cyclical crises less acute.
In mature markets, costs to increase consumption are probably higher than in emerging markets, such as Brazil, the largest coffee producer. The case of Brazil shows that probably the highest returns for institutional investments to develop coffee consumption are to be found in the emerging markets of coffee producing countries. A Brazilian institutional investment valued at US$25 million in 10 years brought about an increase in yearly coffee sales worth 40 times as much. Promotion of coffee consumption in coffee producing countries is likely to represent the best investment of scarce promotion resources because of this multiplier effect. There are huge gaps in per capita consumption between Brazil and many other smaller producers, some (such as Indonesia) with large populations.
It is often argued that the Brazilian promotion program worked only because there was a marked income increase within the same period. But income increases alone, without promotion, are not sufficient to increase coffee consumption. Actually, for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing.
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ID: 100385
For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.
For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.
| Yes | No | |
| Coffee production and per capita coffee consumption in Brazil are significantly higher than in most of the major coffee producing countries. | ||
| The coffee consumed in the major coffee producing countries comes entirely from domestic production. | ||
| As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China. |
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Official Answer
Coffee production and per capita coffee consumption in Brazil are significantly higher than in most of the major coffee producing countries.: Yes
The coffee consumed in the major coffee producing countries comes entirely from domestic production.: No
As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China.: Yes
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ID: 100386
Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?
Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?
| 1998 to 2003 | |
| 1992 to 1994 | |
| 1987 to 1988 | |
| 1988 to 1989 | |
| 1994 to 1996 |
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Official Answer
1988 to 1989
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ID: 100387
Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.
Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.
| Yes | No | |
| Brazil’s 10-year program to promote domestic coffee consumption through institutional investment began in 1993. | ||
| Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries. | ||
| The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production. |
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Official Answer
Brazil’s 10-year program to promote domestic coffee consumption through institutional investment began in 1993.: Yes
Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries.: Yes
The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production.: No
Attachment:
223.jpg [ 77.2 KiB | Viewed 28808 times ]
Attachment:
123.jpg [ 69.8 KiB | Viewed 28781 times ]
Originally posted by Sajjad1994 on 07 May 2020, 01:37.
Last edited by Bunuel on 03 Jun 2024, 12:54, edited 7 times in total.
Last edited by Bunuel on 03 Jun 2024, 12:54, edited 7 times in total.
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Re: The rate of growth in global coffee consumption has been falling behin
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06 Apr 2021, 02:30
06 Apr 2021, 02:30
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Official Explanation
1. For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.
The first graph indicates that it includes, for each major coffee-producing country other than Brazil, the amount of coffee produced by the country in 2003 and the per capita amount of coffee consumed by the country. The line at the top of the graph indicates that Brazil's per-capita coffee consumption in 2003 is 4.5 kg per year, greater than that of each of the other countries in the graph. The text accompanying the graph indicates that Brazil's coffee production exceeds that of Central America. The graph indicates that each of the major coffee-producing countries in 2003 produced less than the combined production of the countries of Central America. Therefore, each of the major coffee-producing countries produced less coffee in 2003 than did Brazil.
The correct answer is Yes.
While both the discussion and the first graph pertain to coffee consumption among those living in coffee-producing countries, neither suggests that this consumption comes entirely from coffee produced in that country.
The correct answer is No.
In the first graph, the roughly equal sizes of the bubbles representing India and China show that in 2003 those countries were roughly equal in population. And the bubbles' very low positions in the graph show that consumers in both countries consumed comparatively little coffee per capita. But the bubbles' positions along the horizontal axis show that in 2003 India produced about 5 million 60 kg bags of coffee, whereas China produced less than 500,000 60 kg bags of coffee. Much more coffee was domestically produced in India than in China, though the two countries were similarly large in population and low in per-capita coffee consumption; thus it appears that increasing consumption of domestically produced coffee had greater potential in India than in China to boost world coffee demand.
The correct answer is Yes.
2. Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?
The Discussion tab's final sentence says "for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing." If this sentence involves oversimplification, there must have been some period outside the years 1993 to 1998 during which both coffee consumption and income were increasing in Brazil. In the second graph, such simultaneous increases would be represented by both the blue bars and the black line increasing in height from left to right in a section of the graph representing some years before 1993 or after 1998. And indeed there is exactly one such section, representing the years 1988 and 1989, in which the blue bars and the black line both increase in height from left to right. So the data shown in the graph for the period 1988 to 1989 indicate that the Discussion tab's final sentence involves oversimplification.
The correct answer is D.
3. Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.
The discussion indicates that the Brazilian institutional investment to develop domestic coffee consumption yielded a large increase in coffee sales over ten years. The second graph shows that Brazil's per capita coffee consumption increased steadily from 1995 through 2001 after several years of relative stability in the early 1990s. If Brazil's institutional investment program began in 1993, it could help explain that steady increase in per capita consumption from 1995 through 2001.
The correct answer is Yes.
The second graph shows that Brazil's per-capita monthly income fell significantly from 2000 to 2003. Since the passage indicates that Brazil was a major coffee-producing country, an economic recession resulting from a decline in worldwide demand for coffee beginning in 1999 could help explain this trend.
The correct answer is Yes.
If the statement is taken as an explanation of Brazil's increase in per-capita coffee consumption, it would conflict with the information in the passage indicating that the increase in consumption was due to institutional investment. If it is merely taken as a description of how Brazil's increase in per-capita coffee consumption coincided with the global per-capita rate of coffee production, it would have no explanatory value.
The correct answer is No.
1. For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.
The first graph indicates that it includes, for each major coffee-producing country other than Brazil, the amount of coffee produced by the country in 2003 and the per capita amount of coffee consumed by the country. The line at the top of the graph indicates that Brazil's per-capita coffee consumption in 2003 is 4.5 kg per year, greater than that of each of the other countries in the graph. The text accompanying the graph indicates that Brazil's coffee production exceeds that of Central America. The graph indicates that each of the major coffee-producing countries in 2003 produced less than the combined production of the countries of Central America. Therefore, each of the major coffee-producing countries produced less coffee in 2003 than did Brazil.
The correct answer is Yes.
While both the discussion and the first graph pertain to coffee consumption among those living in coffee-producing countries, neither suggests that this consumption comes entirely from coffee produced in that country.
The correct answer is No.
In the first graph, the roughly equal sizes of the bubbles representing India and China show that in 2003 those countries were roughly equal in population. And the bubbles' very low positions in the graph show that consumers in both countries consumed comparatively little coffee per capita. But the bubbles' positions along the horizontal axis show that in 2003 India produced about 5 million 60 kg bags of coffee, whereas China produced less than 500,000 60 kg bags of coffee. Much more coffee was domestically produced in India than in China, though the two countries were similarly large in population and low in per-capita coffee consumption; thus it appears that increasing consumption of domestically produced coffee had greater potential in India than in China to boost world coffee demand.
The correct answer is Yes.
2. Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?
The Discussion tab's final sentence says "for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing." If this sentence involves oversimplification, there must have been some period outside the years 1993 to 1998 during which both coffee consumption and income were increasing in Brazil. In the second graph, such simultaneous increases would be represented by both the blue bars and the black line increasing in height from left to right in a section of the graph representing some years before 1993 or after 1998. And indeed there is exactly one such section, representing the years 1988 and 1989, in which the blue bars and the black line both increase in height from left to right. So the data shown in the graph for the period 1988 to 1989 indicate that the Discussion tab's final sentence involves oversimplification.
The correct answer is D.
3. Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.
The discussion indicates that the Brazilian institutional investment to develop domestic coffee consumption yielded a large increase in coffee sales over ten years. The second graph shows that Brazil's per capita coffee consumption increased steadily from 1995 through 2001 after several years of relative stability in the early 1990s. If Brazil's institutional investment program began in 1993, it could help explain that steady increase in per capita consumption from 1995 through 2001.
The correct answer is Yes.
The second graph shows that Brazil's per-capita monthly income fell significantly from 2000 to 2003. Since the passage indicates that Brazil was a major coffee-producing country, an economic recession resulting from a decline in worldwide demand for coffee beginning in 1999 could help explain this trend.
The correct answer is Yes.
If the statement is taken as an explanation of Brazil's increase in per-capita coffee consumption, it would conflict with the information in the passage indicating that the increase in consumption was due to institutional investment. If it is merely taken as a description of how Brazil's increase in per-capita coffee consumption coincided with the global per-capita rate of coffee production, it would have no explanatory value.
The correct answer is No.
Re: The rate of growth in global coffee consumption has been falling behin
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16 Feb 2022, 00:29
16 Feb 2022, 00:29
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Will2020 wrote:
Sajjad1994 wrote:
Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 224, Date : 13-May-2020
This post is a part of Project IR Butler 2019-20. Click here for Details
Question # 224, Date : 13-May-2020
This post is a part of Project IR Butler 2019-20. Click here for Details
Discussion
The passage is based on a document published in 2005.
The rate of growth in global coffee consumption has been falling behind the rate of growth in global production, creating a scenario of recurring price crises that take a heavy toll on coffee producing countries. Programs to expand coffee consumption in coffee producing countries can improve the situation and make the cyclical crises less acute.
In mature markets, costs to increase consumption are probably higher than in emerging markets, such as Brazil, the largest coffee producer. The case of Brazil shows that probably the highest returns for institutional investments to develop coffee consumption are to be found in the emerging markets of coffee producing countries. A Brazilian institutional investment valued at US$25 million in 10 years brought about an increase in yearly coffee sales worth 40 times as much. Promotion of coffee consumption in coffee producing countries is likely to represent the best investment of scarce promotion resources because of this multiplier effect. There are huge gaps in per capita consumption between Brazil and many other smaller producers, some (such as Indonesia) with large populations.
It is often argued that the Brazilian promotion program worked only because there was a marked income increase within the same period. But income increases alone, without promotion, are not sufficient to increase coffee consumption. Actually, for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing.
The passage is based on a document published in 2005.
The rate of growth in global coffee consumption has been falling behind the rate of growth in global production, creating a scenario of recurring price crises that take a heavy toll on coffee producing countries. Programs to expand coffee consumption in coffee producing countries can improve the situation and make the cyclical crises less acute.
In mature markets, costs to increase consumption are probably higher than in emerging markets, such as Brazil, the largest coffee producer. The case of Brazil shows that probably the highest returns for institutional investments to develop coffee consumption are to be found in the emerging markets of coffee producing countries. A Brazilian institutional investment valued at US$25 million in 10 years brought about an increase in yearly coffee sales worth 40 times as much. Promotion of coffee consumption in coffee producing countries is likely to represent the best investment of scarce promotion resources because of this multiplier effect. There are huge gaps in per capita consumption between Brazil and many other smaller producers, some (such as Indonesia) with large populations.
It is often argued that the Brazilian promotion program worked only because there was a marked income increase within the same period. But income increases alone, without promotion, are not sufficient to increase coffee consumption. Actually, for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing.
First graph
This graph shows the gaps between the quantities of coffee produced and the quantities of coffee consumed in the coffee producing countries. Only consumption is shown for Brazil; its 2003 production was much higher than that of Central America.
This graph shows the gaps between the quantities of coffee produced and the quantities of coffee consumed in the coffee producing countries. Only consumption is shown for Brazil; its 2003 production was much higher than that of Central America.
Attachment:
123.jpg
Second graph
Attachment:
223.jpg
1. For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.
| Yes....... | No...... | Statements |
| Coffee production and per capita coffee consumption in Brazil are significantly higher than in most of the major coffee producing countries. | ||
| The coffee consumed in the major coffee producing countries comes entirely from domestic production. | ||
| As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China. |
Yes, No and Yes
2. Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?
A. 1998 to 2003
B. 1992 to 1994
C. 1987 to 1988
D. 1988 to 1989
E. 1994 to 1996
D
3. Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.
| Yes......... | No...... | Statements |
| Brazil’s 10-year program to promote domestic coffee consumption through institutional investment began in 1993. | ||
| Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries. | ||
| The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production. |
Yes, Yes and No
Hi KarishmaB ryanstarr! I'm not getting the 2nd and 3rd statements of the 3rd question. Can you help me? Thank you!
Note the question stem of question 3: Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage.
The given statement needs to be taken to be true. We need to select 'Yes' if the statement helps explain the trend we see in graph 2 (regarding production & consumption in Brazil)
Given Statement 2: Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries.
Brazil is a coffee producing country. We see that 1999 onwards, its monthly income is falling (the line graph shows monthly income). Recession can explain the downward trend in the monthly income. Hence, this statement does explain the trend. "YES"
Given Statement 3: The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production.
Graph 2 gives us the trend in per capita consumption of coffee in Brazil between 1986 and 2003 (the bar graph) but we are not given the trend in global production. This statement does not explain graph 2. Graph 2 does not give us global per capita rate of production.
Hence, "NO".
Will2020
