The objective of this work is to project Brazilian bean demand through 2005 and study the production and trade of beans in Brazil during the 1990s, using the introduction oftheRealPlan as a reference point. In this paper, we estimate the relations between wholesale and retail bean prices in the city of Sao Paulo and the prices received by bean producers in the seven main Brazilian bean producing states. We also evaluate trade margins and perform production studies that consider harvest time, geographical distribution, and the main distribution flows. Econometric analyses were conducted using a two stage method: first, identifying causality-the market level at which price alterations most frequently begin in the event of any shock or factor; and second, determining how these alterations are transmitted-how intensely the market levels reacts to price shocks, which may be caused by a variation in demand, raw material supply, or trade inputs. Finally, future bean consumption was projected.