Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Brazil's coffee co-op cuts exports view; to use 'big bags' in shipments

12/02/2021 | 01:23pm EST

SAO PAULO, Dec 2 (Reuters) - Cooxupé, the world's largest coffee co-op and Brazil's number one exporter, cut its projection for 2021 coffee exports to 4.8 million bags from 6.5 million bags previously, saying shipping bottlenecks and a smaller crop are reducing export volumes.

Cooxupé's president Carlos Augusto Rodrigues de Melo said the company was about to use for the first time an alternative to containerized shipping, using 1,000 kg bags to put the coffee in dry bulk vessels.

"We will ship more than 100,000 bags that way. It is an option to dodge high container price and the lack of containers in the market," Melo told Reuters.

Coffee, as well as cocoa, cotton and refined sugar, are usually shipped using containers. But shortages of that type of equipment, along with reduced space in container vessels, are leading to alternatives such as the use of bulk ships.

Melo said the co-op would likely make other shipments using the so-called 'big bags.'

Shipping hurdles, however, were not the only reason for smaller exports. The Cooxupé head said it was receiving around 2 million fewer bags of coffee from associated farmers due to a smaller crop.

Plus there are defaults. Many coffee farmers, in Brazil and abroad, are not complying with contracts to deliver coffee after prices jumped more than 60% this year.

Melo did not comment on that, but Cooxupé was one of the companies in Brazil suffering from farmer defaulting.

The co-op now projects to move 5.8 million bags of coffee in 2021, considering deals for both domestic and export markets, from a previous estimate of 7.2 million bags.

Looking ahead to the 2022 crop, Melo said the flowering and the conversion to fruit was not ideal. Trees have suffered during this year's drought, which has hurt their capacity to develop berries. (Reporting by Roberto Samora Writing by Marcelo Teixeira in New York Editing by Mark Potter)


© Reuters 2021
Latest news "Economy & Forex"
11:20aGerman transport minister reverses from 15 million electric vehicles goal
RE
11:13aRussian forces arrive in Belarus for joint military drills
RE
11:09aTOP U.S. GENERAL MILLEY TESTS POSITIVE FOR COVID-19 : spokesman
RE
11:07aFirms see increasing labor shortages and wage pressures - Bank of Canada survey
RE
11:04aUAE fuel truck blast kills three, Yemen Houthis claim attack
RE
11:00aOzone harms East Asian crops, costing $63 bln a year, scientists say
RE
10:59aBank of Canada Survey Indicates Strong Upward Wage Pressure
DJ
10:57aBitcoin investors dig in for long haul in 'staggering' shift
RE
10:57aSouth African rand slips as dollar edges higher
RE
10:56aRussian forces arrive in Belarus for joint military drills
RE
Latest news "Economy & Forex"