Farm Renovation & Rehabilitation What do I need to know? Is R&R right for my supply chain? How can I take action? Where can I learn more?
Brazil

Brazil

There is not a strong case for renovation in Brazil, but unmechanized SHFs could benefit from rehabilitation

Download Data Sheet

PDF File 284Kb

Quick Facts

Brazil is the world’s largest coffee producer

Coffee land

‘000 hectares

1,998

Production share

Global & region

1st in world

Production

‘000 tons

2,804

Varieties

Arabica-Robusta

~90% Arabica

~10% Robusta

R&R Need

20% of total land is in need of R&R

SHF land in R&R need

‘000 hectares

1,726,000 ha No need
294,000 ha R&R need

There is not a significant case for renovation since trees are relatively young. Rehabilitation need is driven by suboptimal practices and climate change.

Current SHF yield & potential uplift

Tons per hectare

1.03
1.34
Current yield
Target yield

Uplift potential

+30%

Low potential uplift given the moderate SHF production

Potential increase in supply

<5%

Total national supply could increase ~1-3% if R&R and GAP is implemented on all SHF land in need of R&R2

Notes:
(1) Average yield is calculated as the total SHF production divided by the total SHF land. The potential yield improvement is estimated by GCP and Technoserve, Economic Viability of Coffee Farming, 2017.
(2) Rounded to the nearest 5%, estimate assumes that R&R and GAP increase yields with 30%, and the range reflects a 25-100% R&R success rate Source: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; USDA, Annual Coffee Report, 2017; ACOB, Producer Training Project, 2017; Sustainable Coffee Program, Brazil: a business case for the production of sustainable coffee, 2014; Ministerio da Agricultura, Pecuaria e Abasteciemento, Public policies and the financing of coffee production in Brazil (Presentation for the ICO), 2010; Dalberg Interview.

Other Viability Considerations

  • The 30% potential yield increase applies to unmechanized SHFs. Uplift potential is likely to be lower for other SHFs. Unmechanized farms under 10 ha represent ~30% of total farms, mostly concentrated in the Minas Gerais region.
  • Production costs have increased over the past years.
  • Preservation of soils and ecosystems, damaged by the intensive use of fertilizers, is a key consideration for future suitability of coffee.

Farmer Segmentation

Highest number and share of large farms

  1. Large & medium farmers
  2. Commercial farmers in tight value chains
  3. Commercial farmers in loose value chains
  4. Disconnected farmers

National production is split between SHFs and large and medium farmers.

Brazil has the highest number and share of largeand medium farmers in the world. Most of the SHFsare organized into cooperatives or have links to markets through traders.

# SHFs

‘000

270

1.5% of global SHFs

# SHF land

‘000 hectares

1,360

(~70% of national land) – average farm size ~5 hectares

# SHF production

‘000 hectares

1,400

(~50% of national production)

Assessment of SHF orgs.

Brazil has powerful coops though they are notdedicated solely to SHFs: ~10% of SHFs are linked to coops.

Links to market

Many SHFs are linked to the market through traders.

Enabling Environment for R&R

  • Coffee share of GDP: 0.35% (2011).
  • Coffee sector is a strategic priority for the government. The sector is well organized, including by the well-established Brazilian Coffee Industry Association (ABIC).
  • The government has previously subsidized coffee farmers and pushed for a agronomic model based on intensive practices and use of fertilizers.
  • Most of the seedlings are locally produced. Research institutions (sometimes in partnership with private companies) develop rust-resistant varieties.
  • Seedlings are produced at commercial volumes by private nurseries.
  • Credit for R&R in the coffee sector is easily available through several sources (financial institutions1, rural savings2, Funcafe3).
  • Observers worry that, in the aftermath of the 2015 economic crisis, subsidies to SHFs may be cut off.

Notes: (1) Financial institutions must invest 25% of demand deposits in rural credit. These resources are known as “compulsory resources”. In 2010, compulsory resources represented more than 50% of rural financing. (2) 65% of the value of rural savings deposits must be kept by financial institutions. (3) Coffee Economy Defense Fund: national coffee trust fund dedicated to the financing of the coffee sector. Source: FAO Statistics database; ICO statistics; GCP and Technoserve, Economic Viability of Coffee Farming, 2017; USDA, Annual Coffee Report, 2017; ACOB, Producer Training Project, 2017; Sustainable Coffee Program, Brazil: a business case for the production of sustainable coffee, 2014; Ministerio da Agricultura, Pecuaria e Abasteciemento, Public policies and the financing of coffee production in Brazil (Presentation for the ICO), 2010; Dalberg Interview

  • Public extension services and private rural extension services are available in Brazil. Some cooperatives provide TA to their members.
  • Observers complain about the lack of climate adaptation knowledge and the over usage of fertilizers by SHFs.

Examples of R&R programs

Past R&R programs mostly focused on climate change mitigation and rehabilitation.

HRNS - Coffee and Climate
2010-2019

HRNS provides TA to SHF to adapt to climate change. The program targets several countries, including Brazil.

ACOB - Producer Training Program
2014-2017

ACOB trained 2705 coffee SHF on climate-suitable practices, including GAP and rehabilitation practices.

Learn more and get involved

There is a lot of work to be done to ensure the long-term supply of coffee from countries where the crop has long shaped the social and economic fabric. Learning to extend the life of their trees and improve yields helps farmers stabilize annual production and in turn, income, while the rest of the world benefits from a steady supply of quality coffee. Continue on to learn more about the immediate attention and action that is required to make this a reality.

01.

What do I need to know?

Meeting the R&R need will becrucial to securing coffee supply for 2050 and beyond but there are no quick fixes. Here are some keyconsiderations.

GO

02.

Is R&R right for my supply chain?

There are so many considerations when developing a program. How do I know if a renovation or rehabilitation is right for my supply chain?

GO

03.

How can I take action?

There are seven major needs for the R&R sector, from scaling up existing approaches, to laying the foundations for future R&R

GO

04.

Where can I learn more?

Download the Country data sheets or complete Guidebook in English, Spanish or French

GO