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CONAB: Producers' Profitability

CONAB: Productivity is More Responsible for Increasing Coffee Profitability in Brazil

CoffeeNetwork (New York) - The positive effects of mechanization on coffee productivity are a real fact, reflected in profitability. On the other hand, there is a tendency to increase spending on pesticides. This information, among others, is available in a new study released today by Brazil’s National Supply Company (CONAB).

The report, entitled "The Coffee Culture: Analysis of Production Costs and Profitability in the Years of 2008 to 2017," points to productivity as responsible for improving the profitability of both arabica and conilon varieties.

In some areas of arabica cultivation, such as Luiz Eduardo Magalhães / BA and Cristalina / GO, profitability was positive in almost all the analyzed years. The same occurred with Patrocínio and São Sebastião do Paraíso / MG, where there was similar behavior in 2011 to 2016, with the exception of 2013. Franca (SP) and Londrina (PR) also recovered positively from 2014. Arabica coffee from Venda Nova do Imigrante (ES) only had positive results in two of the nine years analyzed (2012 and 2016).

In the case of conilon production, the behavior was not uniform either. In Rondônia, for example, between 2008 and 2013, the use of less technological planting methods had repercussions on low productivity and profitability, leading to losses to farmers in three of the six years analyzed. From 2015, with the radical change in technology, the trend reversed and there was a strong increase in productivity. In Pinheiros, in Espírito Santo, the main conilon producing state, the good productivity and the prices received by conilon producers were essential to achieve good results in all analyzed years.

Alexis Rubinstein