Brazilian coffee farmers, flushed by a recovery in world prices, are replacing old coffee trees with new ones rather than expanding the total planted area, agronomists and producers said on Friday. Benchmark futures prices in New York hit fresh 4-1/2 year highs just above $1.10 a lb on Friday and are expected to rise further this year in view of a forecasted 17 percent fall in output in Brazil, the world's biggest producer, and a likely global deficit in 2005/06.
"There's no significant increase in the coffee area, mainly substitution of old and abandoned plantations," said Antonio Wander, south Minas-based co-ordinator of the government's Procafe technical assistance agency.
Wander said that some 70 million coffee saplings are expected to be planted in south and east Minas Gerais between November and March. It includes up to 20 million saplings, or 5,000 hectares, of new coffee area.
Despite strong demand, there were enough saplings, he said, adding that 80 percent were supplied by nurseries and the balance produced on-farm.
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