ORGANIZATION OF THE ORGANIC COFFEE INDUSTRY IN THE “SUL DE MINAS” REGION, BRAZIL SOUZA, Maria Célia M. 1 ; SAES, Maria Sylvia M. 2 ; DOLNOKOFF, Fabio 3 ABSTRACT The Brazilian certified organic coffee production began in the “Sul de Minas”region in 1992, when the exports of green beans to Japan amounted to 250 60Kg bags. In the 1990’s, conventional coffee growers were very concerned about improving coffee quality mainly due to the quality contests that started in the country in that decade, such as the Illy Award and the Cup of Excellence Award. When an organic coffee grower won the second place in the Cup of Excellence contest in 1999, that fact was considered as a mere matter of luck, as if organic coffee would not be capable of reaching high quality standards.This study aims to assess the organization of the organic coffee industry in the”Sul de Minas”region in Brazil, under a net- chain perspective, to identify potential sources of cooperation. The “Sul de Minas” is well known as a high quality coffee region in southern Minas Gerais state: some growers from the local cities of Machado and Poço Fundo are dedicated to organic and fair trade coffee production. Emphasis is placed on strategic alliances among the different actors involved in the production, processing and distribution of organic coffee, so a special highlight is given to the articulation among agents. Besides, this work delineates a few prospects, along with their main bottlenecks, such as the multiple certification requirements according to the different markets, and the challenges the organic coffee sector still faces in Brazil. Key-words: organic coffee, “Sul de Minas” region, cooperation, net-chains 1 PhD sudent at PROCAM – Environmental Science Post-Graduation Program/USP and researcher at IEA – Institute of Agricultural Economics/SAA. Av. Miguel Stefano 3.900 Sao Paulo-SP BRAZIL 04301-903. E-mail: mcmsouza@uol.com.br 2 Professor at FEA/USP - Business Administration Department FEA/USP and PENSA/USP Rua Prof. Luciano Gualberto 908 Sao Paulo-SP BRAZIL 05508-900. E-mail: ssaes@usp.br 3 PENSA/USP Rua Prof. Luciano Gualberto 908 Sao Paulo-SP BRAZIL 05508-900 .E-mail: fabiodolni@yahoo.com