[Wanderley Cintra Ferreira] - August / 2021 - Risk Contract Maturity - Coffee
WANDERLEY CINTRA FERREIRA
Coffee grower, ex-president of COCAPEC - Coffee Growers Cooperative
and Agropecuaristas and ex-president of Sicoob-CREDICOCAPEC -
Alta Mogiana Free Admission Credit Cooperative.
Drought and high temperatures in 2020 are already having a strong impact on coffee production nationwide, in the 2021 harvests and with consequences in 2022.
The aggravating factor is that in 2021 it is already signaling the repetition of the climatic phenomenon, object of my previous article in the magazine Attalea Agronegócios - April / 21.
From January to April this year, we already have a water deficit of more than 530 mm., Compared to 2020.
This situation is already being reflected by the market, causing a rise in prices that has not been seen for a long time, at a time when the coffee grower does not have coffee and is going to start a small harvest and that, for sure, will not be able to honor its commitments.
We cannot wait for AUGUST. This is the time for Associations, CNC, Cooperatives, CNA and Rural Unions to start a movement to discuss this new reality that could compromise the entire sector, mainly the producer, the main link in the chain. They cannot omit, the time is now.
I have talked to many producers who have made FUTURE SALES (RISK CONTRACT) who are already terrified, as they will not be able to fulfill such contracts.
"Your problem" will say some. WRONG, our problem, because a large number of producers were induced, by the DEALERS in the matter, to make future sales (sell what they did not have yet) in the illusion of having a more satisfactory profit.
Critical situation, very serious, there will be a shortage of coffee to honor contracts and surplus services for lawyers.
The Risk Agreement for the Future Sale of coffee could lead coffee growers to a very complicated situation, as they will have to buy coffee at a high price and deliver it at a much lower price.
We recently saw a painful experience by Exportadora TERRA FORTE (undergoing judicial reorganization) that did not honor its contracts with COCAPEC, with coffee growers and other companies, causing great losses.
This is the moment for the sector to mobilize. The rope always breaks on the weakest side.
"FARM DOES NOT BREAK, CHANGE OF OWNER".
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