Over the past decade, we have strengthened our presence in the market with innovation, commitment, and strategic solutions for our partners. From the very beginning, our focus has been on ensuring predictability and financial security—key elements for stability in the agricultural sector. Forward sales contracts have become a vital tool for minimizing risks and giving our partners greater control over their businesses.
This contract model, applied to the physical market, allows producers to lock in a selling price even before harvest or the end of the production cycle. By doing so, they reduce exposure to market fluctuations and gain more financial stability. With a well-structured plan, this strategy becomes an essential ally in preventing unexpected losses and ensuring long-term security.
Our commitment has always been to act with transparency and responsibility, ensuring that producers have clear information about both the benefits and challenges of forward sales contracts. This marketing model offers advantages such as greater revenue predictability, protection against sharp price drops, and easier access to credit. Beyond financial security, forward sales contracts enable more efficient crop planning. With predetermined values, producers can better organize operational costs, invest in technology, and develop growth strategies while reducing dependence on volatile market conditions. This stability benefits not just the producers but the entire supply chain.
However, any financial strategy requires careful analysis to minimize risks and maximize opportunities. While forward sales provide security, they can also limit potential gains during periods of high market appreciation. For this reason, a solid strategic plan based on realistic projections is essential.
Additionally, unpredictable factors such as extreme weather variations can impact production delivery. To mitigate these risks, adopting a robust management approach with preventive measures and alternative strategies is crucial to maintaining business stability.
During the 2020 and 2021 harvests, the global coffee market was deeply affected by a combination of severe drought and unexpected frosts in Brazil. This period coincided with the growing adoption of forward sales by producers, who were increasing their participation in this model. However, given this challenging scenario, it became crucial to be present in the field, understanding the reality of coffee growers and facilitating contract rollovers that ensured both the survival of some producers and the overall market’s stability.
While many suffered significant losses due to climatic conditions, others sought alternatives to mitigate accumulated losses over the years. At the same time, several industry players faced severe financial flow corrections. Despite the uncertainty among producers and market agents, this period also drove key advancements, such as implementing stronger tools to manage future sales percentages and, most importantly, strengthening sustainable initiatives whose benefits extended throughout the entire supply chain.
Over these 10 years, we have closely monitored the market and refined our approach to ensure that this sales model remains advantageous. The experience gained during this period has allowed us to develop more efficient strategies. We continuously strive to provide strategic insights that help our partners understand the economic landscape and market trends, enabling them to evaluate forward sales contracts with clarity.
With this accumulated expertise, we reaffirm our commitment to continuously improving our processes and offering the support our partners need to grow sustainably and securely. Market evolution demands constant adaptation, and our mission is to ensure that our partners are always prepared to face challenges and seize new opportunities. As we celebrate this milestone, we do so with pride and confidence, knowing we are on the right path—building a more stable, predictable, and prosperous market. Together, we continue to innovate and create solutions that make a difference for the future of the industry.
0 Comments