It will not only be we who import coffee from Brazil and export Norwegian products there that will feel the consequences that have arisen after the election in Brazil. Great dissatisfaction and suspicion of election fraud have led to large demonstrations and actions in Brazil, which will have a direct impact on Norwegian companies that use Brazilian raw materials.
Regardless of what one may think about the conduct of the Brazilian elections, one must be realistic. Planning exports to Brazil now that local food producers, food suppliers, and transport could possibly go on strike could be a loss project. Paying for goods that cannot be exported out of Brazil falls into the same category.
In reality, this is not necessarily a voluntary choice. Others will probably see the choice made for them, so to avoid that, we will not have the same focus on Brazil in the coming months.
For us, this means a decline in purchases of goods of approx. 4.5 million in this period.
The price of coffee is affected a lot by the crops in Brazil and the prices of Arabica beans had decreased by approx. 25% in the last 6 months, largely due to good harvests in Brazil.
Now it seems that the fear of blocked ports may send the price up and in recent days the price has shown a rapid rise by approx. 1% increase every day.
A lot of soy is imported into Norwegian agriculture and salmon farming. Currently, apparently, no significant rise in the prices of soy, orange juice, and other commodities imported from Brazil. This is probably mostly due to good harvests, but here too a problem will arise if there are challenges related to transport. Even manufacturers’ willingness to deliver can become a problem.
This may affect the price of:
We hope for the best for Brazil and that they find out what makes the people dissatisfied!
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