Aiming to give strength to future and forward contracts, the platform will bring more transparency, security and intelligence in risk management for decision-making in all links of the sector's production chain
In recent years, the advent of new technologies and their constant evolution have brought dynamism and strength to the coffee market. Keeping its modern and contemporary management, the Council of Coffee Exporters of Brazil (Cecafé) has partnered with Serasa Experian to use a platform that aims to bring additional protections to future and forward coffee contracts, as a form of market instrument long-term, which adds liquidity, predictability, sustainability and risk mitigation to coffee production.
"The platform, developed in full compliance with current legislation on data protection, competition defense and credit protection, aims to reduce information asymmetry and provide more security to the future market instrument, seeking to generate market intelligence for a better risk management in decision-making, generating benefits for all segments of the production chain”, explains Marcos Matos, general director of Cecafé.
According to the director of DataLab and responsible for actions aimed at agribusiness at Serasa Experian, Marcelo Pimenta, comments that “Brazil is the largest coffee exporter in the world, and the traders they need to have better visibility of their suppliers' reputation and contractual and production risks. That's why we want to be the main partner to bring data to facilitate access to credit and new business in the future market”.
Executives claim that the initiative will bring more balance to the financial health of the market and its actors, from production to trade, given that, with sellers and buyers honoring their commitments, a positive and proactive scenario is created that enables producers keep doing barter – exchange of coffee for inputs or machinery – and having access to various credits, such as the Coffee Economy Defense Fund (Funcafé) and other lines of financing, including in advance.
The information included in the platform, which will be operated exclusively by Serasa Experian, will be provided by Cecafé members who adhere to the project, strictly complying with the national legislation, especially the General Data Protection Law (LGPD), when applicable.
“Cecafé reinforces that, in partnership with other coffee segments and entities in the country, it will continue to make efforts to find solutions that mitigate risks and guarantee the sustainability, income and competitiveness of all coffee agribusiness in Brazil”, concludes Matos.
HISTORIC EVOLUTION
The Brazilian coffee industry, in its 294 years of history, has learned from the modernizations that the market has presented and has optimized its actions over time, being synonymous with resilience, technification, modernity, socio-environmental responsibility and vanguard. Focused on research and technology, Brazil has increased its productivity from eight bags to more than 30 bags per hectare in recent decades, making the national activity the most competitive in the world.
With the arrival of new technologies, Brazil was an example, leading an evolutionary process of creation and investment in new marketing tools, such as auctions of Rural Product Bills (CPR), future contracts, forward contracts and, more recently, of barter, which enable producers to transform their coffee into exchange currency for inputs and machinery, for example.
This entire framework allowed the country to become not only the largest coffee provider in the world, but also a partner with the most sustainable products and loyal to its commitments to exports and domestic consumption.
The partnership with Serasa Experian complements the entity's concern with maintaining good economic and financial health in all segments, as Cecafé is concerned with fulfilling the commercial commitments that Brazil assumes with its partners.
