Brasília, April 26, 2004 (Agência Brasil) - Brazil intends to expand its production of specialty coffees, including organic varieties, and, for this purpose, the Ministry of Agriculture, Livestock, and Supply's secretary of production and commercialization, Linneu Costa Lima, is participating today in the 16th Annual Conference and Exposition of the Specialty Coffee Association of America, in Atlanta (USA). At the meeting he will become acquainted with the special cultivation and processing techniques. Brazil is the world's largest coffee producer and exporter and the second biggest consumer.

The production of specialty coffees serves small market niches, requires selected beans and high sanitary standards, and is sold in sealed cans that weigh around 350 grams and come with printed labels. The advantage of this investment is that the average price of a sack auctioned internationally over the internet is US$ 440, whereas the current price of ordinary coffee on the commodities exchange is US$ 67. There is an expectation that the exportation of specialty coffee can grow as a source of supply for the concoction of ready-to-drink coffee, since specialty coffees do not grow bitter the way everyday coffees do.

THE HARVEST

On Friday (23) the Ministry of Agriculture announced its second estimate for the 2004/2005 coffee harvest: The forecast now stands at between 36.10 million and 40.46 million sacks, a 5.8-8% increase compared with last December's prediction. The growth in production reflects the increase in planting during the year and the improvement in climatic conditions during the stage of crop development.

The midpoint of this second estimate suggests a harvest of 38.28 million sacks, as against 28.82 million in 2003/2004 and 48.48 million in 2002/2003. The rise in the estimate since December is basically related to the cultivation of Arabian coffee. The variation was smaller for the robust variety, from 7.65-8.33 million sacks in December to 7.87-8.55 million sacks in the most recent estimate.

The survey of coffee production was conducted during the period March 15 - April 15 in nine producer states.

Translator: David Silberstein