Wouldn’t you like to be able to start your day at home with a fresh cup of coffee grown on your own farm?  With one 103ha pivot planted in coffee we will be able to grow more coffee than you ever dreamed of drinking!  Worldwide 1400 million cups of coffee are consumed everyday; it is the world’s second most popular drink after water.  Starbucks is planning to open more than 1000 new franchises in 2007 and they would not be doing this if the demand was not out there. Maybe the current worldwide depression since 09/2008 has forced people to reassess their necessities; which has slowed the Starbucks brand increment! In the Western Bahia region in 2008 there was approximately 15,000ha of irrigated coffee which contributed 13% of the regions income.  Brazil is the world’s largest producer of coffee and produced 22 million metric tonnes in 2006, exporting mainly to USA, Germany, Japan and Italy. Coffee can be planted on newly opened / developed cerrado soil and 13 months after planting the first harvest begins.  Exceptional yields by worldwide standards have been achieved in the region at 160 sacks per hectare (103hectare pivot X 60kg per sack X 160sacks/ha = 9.6 tonnes per pivot).  International and domestic coffee buyers consider coffee grown in this region to be some of the best Brazil has to offer. 

Feb 10 2009 the coffee price is approximately $120 per sack.  With expected production of approximately 35 sacks/ha in 18 months ($4200/ ha), 90 sacks/ha at 30 months ($10800 /ha) and about 75sacks / ha every year thereafter ($9000/ha).  The total income up to month 30 will pay for all of the development costs, including land purchase, land clearing, fertilization, well drilling and pump installation, purchasing and installing 3 pivots, purchase specialist machinery, equipment, buildings, purchasing and transplanting plants, all administration and technical costs is expected to total approximately $5000/ hectare. (5000 X 103ha = $515,000 invested into one pivot)  However after the first 2 harvests these costs are easily returned and all future harvests are completely for profit after general running costs. You just have to be able to carry the initial investment! Finance is available, even in this tough 2009 economy! After 30 months the total costs have been repaid by the returns, and that every annual crop thereafter is yielding very high returns.  A coffee plant lives for 50 – 70 years, and it produces annually, but commercial coffee growers seldom have plantations older than 20years.

In 2006 Vietnam flooded the market with cheap coffee and lowered the worldwide price of coffee to approximately $100/ sack, however the price has rebounded to $120/ sack its current value (05 Feb 2009).  Vietnam is forecast to be producing 11.8 million tonnes in 2006; making it the number 2 producer in the world.  As with growing any commodity there is the chance of devalued returns for whatever reason.  These changes in values are not necessarily cyclical, however with Nova Brazilandia’s management strategy; if one commodity has low returns, then most likely one of the other crops will be having a good year with higher returns than normal, and the farms over all returns are not dramatically affected.  So it is suggested that if you are purchasing more than 1 unit, to put some money into the general farming as well as the coffee enterprise to make certain good returns are still being made on your overall investment.