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Economic and financial viability of Arabica coffee cultivation in the Alta Mogiana region

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  • Goes, Thaís Bianchin
  • Chinelato, Gressa Amanda

Abstract

The Alta Mogiana region, besides being traditionally known for coffee production, stands out nationally for producing beans with distinct sensory characteristics. Capital invested in coffee cultivation (Coffea sp.), a perennial crop, can remain tied up for a long period; therefore, rational planning is necessary before investing. The objective of this work was to conduct an economic-financial feasibility analysis to provide elements to support the decision-making process regarding investment in coffee farming in Alta Mogiana. This study analyzed two productivity scenarios for three different prices per sack of coffee and two project durations. The comparison of scenarios showed that an increase of 5.6 sacks in productivity can be a determining factor in whether a coffee plantation is viable or not. According to the economic indicators obtained, investment in coffee farming in the region is viable when considering an average productivity of 34.40 sacks per hectare and an average selling price per sack of R$ 486.85, or a productivity of 40 sacks per hectare and a selling price per sack above R$ 400.00.

Suggested Citation

  • Goes, Thaís Bianchin & Chinelato, Gressa Amanda, 2019. "Economic and financial viability of Arabica coffee cultivation in the Alta Mogiana region," Revista IPecege, University of Sao Paulo, vol. 4(4).
    • Handle: RePEc:ags:ipeceg:386301
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