Coffee Market Scenario

Brazil: Robusta coffee expands plantations in Sao Paulo

- Valor Economico - Robusta coffee emerges as alternative in Sao Paulo state, as many investors linked to the sector have decided to enlarge investments in


- Valor Economico -

Robusta coffee emerges as alternative in Sao Paulo state, as many investors linked to the sector have decided to enlarge investments in production of the variety, specially due to a better profits margin.

Robusta coffee emerges as alternative in Sao Paulo state, as many investors linked to the sector have decided to enlarge investments in production of the variety, specially due to a better profits margin. The state is currently the 3rd largest coffee producer in Brazil, behind Minas Gerais and Espirito Santo, notwithstanding it only produces arabic coffee. Sao Paulo's Secretaria de Agricultura reported the robusta coffee has got margin of profits 20% - 30% higher in comparison to the arabic variety, even with being 45% cheaper than the premium variety. The impresario Luiz Roberto Goncalves, former partner Cafe do Ponto, later sold off to Sara Lee, and after president of the US coffee trader until 2005, believes in the development of the robusta variety in Sao Paulo. He is currently has got 10 ha of planted area, or around 25.000 coffee seedlings brought from Espirito Santo, at Lins which are to be flowering in the winter.

The first harvest is expected to take place in 2011's first half, as the seedlings adapted pretty well, according to Goncalves. Edvaldo Frasson Teixeira, partner Treviolo Cafe which counts already with robusta coffee farms, is also confident about the new perspective in Sao Paulo's coffee segment. Teixeira has got 17.000 robusta coffee seedlings in 6 ha at Adamantina, nearby the border with Mato Grosso do Sul. Pedro Moreira Sales, president administration council Itau-Unibanco, who produces arabic coffee in Matao, directed part of his farm to the cultivation of the robusta. The introduction of the robusta variety in Sao Paulo is being headed by the Institute Agronomico de Campinas (IAC). The state counts with 250 roasters and three soluble coffee plants that currently absorb 7mil sacks per year. The seedlings planted in Sao Paulo were selected and brought from Espirito Santo by the IAC, which already boasts a genetic bank of the robusta variety.

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