With exports falling, Cooxupé uses coffee ‘big bags’ to mitigate the lack of containers

The largest coffee co-op and exporter of coffee in Brazil, Cooxupé, has revised its forecast for shipments in 2021 downwards by almost 20% due to logistical problems, and is ending the year with an atypical shipment of “big bags” directly on the ship to mitigate the impact of the container shortage on foreign sales.

“It was a year in which we should fall far short of what we expected in shipments… this was the great villain of the year 2021”, said the president of Cooxupé, Carlos Augusto Rodrigues de Melo, in an interview with Reuters, referring to the shortage of containers and high sea freight costs.

Before the logistical problem worsened, Cooxupé’s expectation was to ship 7.2 million 60-kg bags, of which 6.5 million bags would be for export. These estimates have now dropped to 5.8 million bags, with 4.8 million bags to the foreign market.

As a result, total shipments (foreign and domestic markets) will be 19.4% lower than initially forecast and will also drop compared to the 5.9 million bags in 2020, when Brazil harvested its biggest crop in history.

Melo recalled that the co-op usually exports larger volumes in years of low productivity, such as in 2021, to take advantage of better prices. But the move was hindered by logistical bottlenecks.

The pandemic is one of the factors behind the container crisis and flows between imports and exports changed as lockdowns affected activities.

Seeking to get around the problem, the president of Cooxupé said that the co-op will participate in the first shipment of coffee in “big bags” to ship around 1,000 kilos this year, scheduled for next Saturday.

Asked about new shipments directly on the ship using the large bags, Melo said that “another opportunity is appearing”, with other interested companies.

Source: Money Times

To read the full original article, access the link: https://www.moneytimes.com.br/com-exportacao-em-queda-cooxupe-usa-big-bags-de-cafe-para-atenuar-falta-de- container/

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