East German coffee crisis

As a consequence, the East German government increased its engagement in Africa and Asia, exporting weapons and equipment to coffee-producing nations.

[1] In 1977, East Germany experienced difficulties meeting domestic demand for coffee, a commodity that had to be bought using Westgeld [de], i.e. freely convertible Western currencies that were in short supply in Eastern Bloc countries.

[5] This led to increased demand for the available luxury goods, such as confections, tobacco, alcoholic beverages, and coffee (3.6 kilograms (7.9 lb) annually per capita) in the 1970s.

[10] The suggestion to cease coffee production, put forward by Alexander Schalck-Golodkowski, was able to be avoided after Politburo member Werner Lamberz encouraged barter trades with, and armament sales to, [11] Third World countries, such as Ethiopia and Mozambique.

This increased the demand for the typical return gift, a Dresdner Stollen, which also caused difficulties in the East German economy, because many of the ingredients, such as almonds, raisins, and succade, were also only available as imported goods.

[13] The citizens of East Germany[14] overwhelmingly rejected the Kaffee-Mix and saw the coffee shortage as an attack on a major consumer need that was a large part of everyday life.

[16] Even though the price of coffee on the international markets retreated and normalized in 1978,[17] the problems faced by the East German government acquiring foreign currency continued into the 1980s, prolonging shortages that progressively damaged the image of the country's political leadership.

Robusta plants grow faster, contain more caffeine, suit the climate of the Vietnamese Central Highlands, and lend themselves better to mechanized harvesting.

[20] In particular, East Germany provided trucks, machinery, and irrigation systems for the newly founded Kombinat Việt-Đức, as well as spending approximately $20 million on a hydropower plant.