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Sunday, October 7, 2007

Brazilian Coffee

Brazil is the world biggest coffee producer: during Crop year 2006/2007 Brazil produced 42 mios of 60kg green coffee bags.

The chart below shows the historical production of Brazil over the last 30 years.

Accordingly to the latest CONAB figures Brazilian 2007/2008 crop is estimated at 32,62 million bags. The low Brazilian production of 2007/2008 has contributed to this year global deficit of Coffee and to the increase in coffee prices. The weather condition and rain levels in key Brazilian producing areas during this month and the next are gathering a lot of attention to assess the potential for 2008/2009 crop.

Which are the main producing regions of Brazil? Vast plantations of millions of trees cover the hills of south-central Brazil, as shown in the chart below, Minas Gerais, Espirito Santo, Sao Paolo are the key producing areas accounting for 90% of the total production.

Brazil coffee cycle: the harvesting period is June-July-Aug and the blooming (flowering) period is Sept-Oct-Nov. Coffee trees need sustained rains during the latter part of September and October to promote flowers, which mature into coffee beans. Any rain that is interrupted by dry periods or a long dry spell will actually damage the crop, these days coffee growing areas are in critical situation and need rain to improve humidity level otherwise 2008/2009 production could drop. The trees can tolerate up to 150mm moisture deficit (some area have now a deficit of 300mm) and some producers and authorities are worrying and waiting for some rain.

1 comment:

3B said...

very nice blog,focused on coffee production in Brazil and its growth prospect..Brazil is one of the largest producer of arabica and second largest producer of robusta coffee..Thanks for sharing informative post
coffee market