The world’s largest coffee cooperative, Brazil’s Cooxupe, plans to halt spot exports until next month, as the current harvest season winds down.
Heavy rains in Brazil damaged many coffee crops in Brazil earlier this season, and sources told Reuters that top-quality arabica beans will account for only about 56 percent of Brazil’s output this year, which is down considerably from recent years.
“Our house has a reputation for producers of very fine coffees. I can’t promise my clients something and tomorrow frustrate them by not delivering,” Joaquim Libânio Ferreira Leite, Cooxupe’s head of sales, said in a recent conference, according to the Reuters report.
Cooxupe plans to honor all existing contracts — which it maintains with numerous companies, including Starbucks and Nestle — but spot exports will not resume until September, when the coop has a firmer understanding of the top-quality arabica market.