Brazil increases coffee plantings.(World News: Coffee and Tea Reports from the Front Line)(Brief Article)

Tea & Coffee Trade Journal, April, 2005 by Jones, Harry C.

BRAZIL -- A recent study by the Sao Paulo Financial journal, Gazeta Mercantil, reported that the recent valorization in world coffee prices has stimulated an increase in new plantings in Brazil especially in areas favorable to Arabica production.

The movement is confirmed by the sharp increase in demand for seedlings which in some regions is exceeding supply. Historically, the price of seedlings follows green coffee prices and values for a lot of 1000 seedlings has jumped from R$80 in January 2004 to the present cost of R$250, an increase of over 200%.

Many farmers are taking advantage of the market improvement to upgrade their plantings by removing old tired trees for new seedlings which in 2 to 3 years will be in full healthy production.

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