The Hindu Business Line : Growers increase area under coffee on rising prices

Kochi, Aug 16 The rising coffee prices and the growers’ belief that it would stabilise at remunerative levels and sustain for at least five years, seems to have enthused them to go for an expansion of area under the crop during the past couple of years.

The area under arabica has gone up by 7,434 hectares and robusta by 17,435 hectares in 2005-06 from that in 2003-04. Thus, the increase in the total area stood at 25,869 hectares during the period, according to UPASI statistics.

Non-traditional areas

However, Dr Jacob Thomas, a major planter and agricultural scientist, told Business Line on Tuesday that the scope for area expansion in the traditional areas such as Kodagu, Chickmagalur, Wayanadu (Kerala) etc., is limited. But, wh ereever space is available the growers are bringing that under the crop. But, the attractive price, at present, appears to have motivated farmers to take up coffee in the non-traditional areas where the soil and climatic conditions are somewhat conducive, he said.

He said that new plantations’ impact on the total output would be known only after they started bearing. From the fourth year of planting, yielding would start and to get the full yield it will take seven years, he said.

Therefore, the production from the new plantations would not reflect on the total output for at least three to five years, he added.

Besides, the better prices have encouraged the growers to take up scientific farm management practices to improve productivity. At present, the yield per acre ranges from 500 kg to 1,000 kg.

The Brazil effect

Substantial drop in Brazil coffee production in 2007-08 by 31.2 per cent to an estimated 32 million bags from 46.5 million bags last year has kept the prices scaling up this year. The average price up to July 31 for Plantation ‘A’ was at 113.79 a kg from Rs 103.79 and Rs 110.17 a kg in 2005 and 2006 respectively. Price of arabic cherry ‘AB’ and robusta cherry ‘AB’ also moved up to Rs 94.11 a Kg and Rs 73.47 a kg respectively from Rs 86.79 and Rs 62.86 last year.

The increase in robusta price is attributed to some problem with the Vietnam production projections, which the industry sources feel that the actual output might be below their (Vietnam) earlier estimates. Besides, there are also said to be some quality issues. The Indian output is estimated to be less this year.

Outlook bright

Considering all these factors, the prices are likely to move up this year and expected to stabilise at a moderate level for next three to four years, they claimed.

“The price this year is Rs 1,750 a bag of 50 kg robusta cherry. This price is good. One day it touched Rs 1,900 a bag. This price is good and we in Coorg area are very happy. Any rate above Rs 1,000 per bag is good for the planter,” Mr T.V. Gopinath, a Kodagu planter told Business Line.

Quoting a US investor, he said, coffee prices “will remain at this level for at least 5 years and one should buy coffee estate now as the future is very bright”, he said. For robusta, Vietnam is our main competitor and they are the second largest producer of coffee in the world after Brazil, he said.

Stem borer is mainly in arabica and robusta is free. “We spray and control the borer in the estate.”

He said his current yield per acre is 500 kg of clean coffee. However, in good coffee growing areas it is 1,000 kg/acre. “I am working on the cultivation to increase productivity and I hope to achieve 30 bags of cherry or 750 kg of clean coffee by 2009 season,” he said.

Small holdings numbering 1,75,475 with a total area of 2,54,932 hectares have a share of 71.84 per cent in area and 60 per cent of production. While 2,833 large holdings with a share of 28.79 per cent in area contribute 40 per cent of the total output, official sources said.