ECONOMIC VIABILITY OF COFFEE – GREVILLEA AGROFORESTRY SYSTEM IN NORTHERN STATE OF PARANÁ

Abstract

In the 70´s, Grevillea robusta was introduced as windbreaks into coffee plantations in the Northern region of the State of Parana, Brazil. This paper aimed to analise the economic feasibility of this agroforestry system, by comparing it with the previous situation of single coffee cultivation. A software called SAAC was applied in order to calculate cash flows and profitability parameters, such as Net Present Value (VLP), Internal Rate of Return (TIR), Income Cost Ratio (RRC), and Annual Equivalent Value (VEA). The results showed that this tree species can be introduced into the system at a very low costs and only using marginal area, 58 tree per hectare. Although all parameters have shown small but positive gains, the important economic aspect found was that, at the end of rotation period, net income could increase 32,22%, allowing farmers to forward resources for a system renewal, i.e., to rebate rotation and planting costs. Thus, the system is efficient, allowing economic continuity of coffee plantations through sales of Grevillea robusta timber.