Analysis of economic and financial viability of coffee production: a study in the major coffee producing regions of Brazil

Abstract

This paper aims to analyze the economic viability of coffee production compared with the financial implementation rate of return tied to the Special Settlement and Custody (Selic) in the main producing states of Brazil. The methodology used in obtaining the information and the structuring of the properties is defined as the panel is essentially a meeting between the researchers and technicians and producers. Data were collected in the following cities: Three Points in the state of Minas Gerais, Iúna the state of Espirito Santo; Altinópolis in the state of São Paulo, Ribeirão do Pinhal, Paraná state, in addition to Vitória, state of Bahia. The criteria used to evaluate the economic viability of the projects were the Net Present Value (NPV) and Internal Rate of Return (IRR). The results indicate that investing in coffee production is less profitable in most cases for investment equivalent to the Selic rate.