Today Coffee plantations covers about 27,000 km2 (10,000 sq mi) of the country; of the approximately six billion trees, 74% are arabica and 26% robusta.The states São Paulo, Minas Gerais and Paraná are the largest producers due to suitable landscapes, climate and rich soil.Most plantations are harvested in the dry seasons of June through September.
As in other coffee producing countries, Brazil has a large population is involved in the harvest. About 3.5 million people working in industry, mostly in rural areas, the seven million direct and indirect jobs.The industry divided into two different groups, ground roasted coffee and instant coffee, produced with different structures and competitive patterns.The ground coffee market is highly competitive with more than 1,000 companies in 2001. In contrast, the instant coffee market with the four large companies accounting for 75% of market.Brazil the only high-volume producer subject to frost concentrated. Severe frost destroyed large crops in 1975 and 1994. The two frost in 1994, but also a shortage of water in 2001 had the world prices.The Brazilian Coffee Institute monitors the price of coffee by regulating the quantity grown and sold on the world.
Tariffs
The tariffs on coffee exports are generally low, but higher on finished products such as instant coffee. Brazil is not out of the preferential trade agreement that most coffee trade will benefit by. For example, the Brazilian exporters pay a rate of 7.5% in the EU, compared to 2% for SAP countries and 0% for the ACP countries. Exports to the United States free of duty, but the United States Federal Government supports Ecuador, Peru and Colombia, farmers in the context of the anti-drug initiative.
