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Brazil's coffee shippers drop jute bags for containerised bulk shipping
BRAZIL's coffee producers who moved from earthy jute bags to super-sized plastic ones are now opting for loading beans loose into lined shipping containers to save handling costs as the price of the commodity falls, Reuters reports.
A lined TEU holds 21.6 tonnes of coffee, while one with jute bags holds only 19.3 tonnes and 20 tonnes in plastic super sacks, said Alex Jairo Pinto, director at Dinamo, the largest coffee warehouse at the Port of Santos.
With super sacks to replace the 60-kg (132-lb) jute bags, firms save millions of dollars a year in a move all expect to reshape the global industry.
The humble jute bag, long the distinctive packing for Brazil's coffee exports, is being edged out as traders and cooperatives face rising wage bills and borrowing costs, weak global prices and a deepening economic crisis at home.
"It's the future," said trader Mauricio Di Cunto at exporter Comexim, which ships half its coffee in bulk. "It lets us be more aggressive in offering discounts without the cost of jute."
The growth in bulk handling reflects a plunge in manual labourers lifting coffee bags. Higher wages and stricter regulations, which expose industry to worker-injury lawsuits, are hastening the decline.
The calculation is compelling: one worker with a forklift can fill a container with super sacks in 25 minutes, while nine men need nearly an hour with jute. Loading a liner is even faster as beans are dumped in loose.
It costs 22 to 40 centavos every time a worker hoists a 60-kg bag to fill a container or weigh it. Brazil produces 50-60 million bags of coffee a year.
A lined TEU holds 21.6 tonnes of coffee, while one with jute bags holds only 19.3 tonnes and 20 tonnes in plastic super sacks, said Alex Jairo Pinto, director at Dinamo, the largest coffee warehouse at the Port of Santos.
With super sacks to replace the 60-kg (132-lb) jute bags, firms save millions of dollars a year in a move all expect to reshape the global industry.
The humble jute bag, long the distinctive packing for Brazil's coffee exports, is being edged out as traders and cooperatives face rising wage bills and borrowing costs, weak global prices and a deepening economic crisis at home.
"It's the future," said trader Mauricio Di Cunto at exporter Comexim, which ships half its coffee in bulk. "It lets us be more aggressive in offering discounts without the cost of jute."
The growth in bulk handling reflects a plunge in manual labourers lifting coffee bags. Higher wages and stricter regulations, which expose industry to worker-injury lawsuits, are hastening the decline.
The calculation is compelling: one worker with a forklift can fill a container with super sacks in 25 minutes, while nine men need nearly an hour with jute. Loading a liner is even faster as beans are dumped in loose.
It costs 22 to 40 centavos every time a worker hoists a 60-kg bag to fill a container or weigh it. Brazil produces 50-60 million bags of coffee a year.
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