Find out how specialty coffee is exported

The specialty coffees produced by Cooxupé’s member families are identified through the Especialíssimo program and marketed by SMC Specialty Coffees. In other words, the company controlled by the cooperative is responsible for the entire process of receiving and exporting the beans. But how is the process of exporting specialty coffee carried out?

Exporting specialty coffee

When it comes to exporting these beans, there can be some doubts about the procedures. After all, there are various external factors that can have an impact on the long journey that specialty coffee takes to reach its destinations.

“It is interesting for us to talk about some points relating to logistics and exports with our members. We get questions all the time,” says Estela Marrafon Galhardi. She is an administrative supervisor at SMC.

We have listed the answers to five common questions about exporting specialty coffees. Check them out below.

Does the container used to export the coffee, belong to SMC?

Estela Marrafon: No. The containers belong to the shipowners, i.e, the companies that carry out all the loading procedures between the ports. Each client chooses the shipowner that best suits their requirements. It is therefore SMC’s obligation to make the maritime booking in accordance with the client’s indication. In addition to delivery to the port within the agreed deadlines.

We use “food standard” containers, which are not allowed to smell. However, they cannot be used for loading chemicals or have structural damage. This is the most difficult type of container to obtain. Both because of its particularities and because of the high demand, especially in the second half of the year.

How are the containers loaded and transported to the Port of Santos?

Estela Marrafon: First of all, SMC has a partnership with a number of carriers who arrange for the container to be picked up at the Port of Santos. At this point, we carry out an initial inspection. When it arrives at our warehouse, our team inspects it again. We then load the lots and, once sealed, the container is taken to the port.

When it arrives in Santos, the container is delivered at the designated time, ready for shipment. Once inside the terminal, the Receita Federal (Brazilian Federal Revenue Service) checks all the necessary documentation for clearance.

How are the containers loaded and transported to the Port of Santos?

Estela Marrafon: First of all, SMC has a partnership with a number of carriers who arrange for the container to be picked up at the Port of Santos. At this point, we carry out an initial inspection. When it arrives at our warehouse, our team inspects it again. We then load the lots and, once sealed, the container is taken to the port.

How much does it cost to export a container? How does sea freight work?

Estela Marrafon: After the pandemic, there were extra costs that didn’t exist before. Especially for the standard food container – as it is in greater demand, some shipowners have started charging to supply this specific type. Not everyone has assimilated this practice, but it does happen.

Likewise, there is a stipulated period in which the container can remain on hold, both outside and inside the terminal. Even if there are delays that are not our responsibility, however, they charge extra fees for the cargo to remain there until it is shipped.

We even trade our coffees in dollars. And we also pay our export costs in that currency. In this sense, costs at the terminal, issuing documents, sealing, handling – all these points have increased. In the last three years, for example, there have been new fees and, in total, from 2021 onwards, general export costs have increased by 35%.

How many days does it take for a ship to reach its destination?

Estela Marrafon: We have an average for each destination. In other words, if we take Asian countries into account, it can take between 34 and 38 days. On routes to Europe, for example, it takes around 20 days. And for South Africa, the average is a little less – around 12 days. This can be very relative, as it depends on how many stops the ship makes. The route taken will also affect the arrival time and freight costs.

Primarily, it takes us about 10 days to complete the entire operation, in a comfortable situation. Taking into account the delays we have seen in recent times, in short, the deadline could extend to 15 days. According to Cecafé, in extreme situations it has already reached 22 days.

Are there any external interferences that can jeopardize the export deadline?

 Estela Marrafon: Yes. On the one hand, bad weather is one of the things that can affect it the most. The ship can’t operate if the weather is alarming and this wait has an impact on the journey time.

Last year, with the rains in the south of Brazil, ships were not docking at the Port of Paranaguá, in Paraná, but went straight to the Port of Santos. This led to several delays and changes to deadlines. Technical problems or accidents are also causes of delays.

In February of this year, in short, coffee ship delays in the Port of Santos reached 75 per cent. This has already had a direct impact on the shipment planning of companies working in the sector, generating additional costs. In other words, it ends up being a major obstacle when it comes to meeting deadlines and honoring delivery commitments.

Even with the operational difficulties that can arise, SMC continues to fully meet the demands of its customers. As a result, SMC is active in more than 29 countries, bringing Brazilian speciality coffees to the world. In addition, it prioritizes partnerships and high quality, from end to end.

In conclusion, to find out more about SMC’s work, visit their website by clicking here. And follow the company on social media @smccafebr.