FAQ - Primavera
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F.A.Q.

Here you can get some answers to the most common questions.
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How is the product shipped from the Farms (fazendas) to harbour storage?

The product is sent from the farms to temporary storage. Usually the soybeans can be shipped as they are but they can be dried until the correct humidity is achieved.

Then the soybeans are shipped to the harbour in a combination of trucks, rail and river. River and rail never by itself. We are excited by the new river transport system as it will be cheaper and more efficient.

Is the product certified?

Samples of the product is taken and it is genetically tested to see whether it conforms to expectations. NON GMO Soybeans are tested by independent laboratories after harvest. All soybeans are tested before loading on the ships. Other products may be treated differently.

Bulk or packaging?

Soybeans can basically be transported on ships in the following manners:

  • Bulk. The soybeans are sent into the holds of ships from the harbor storage through tubes. Loading capacity at up to 1800 tons per hour
  • Packed in bags. NON GMO must usually be packed in bags. Bags are usually 50kgs each
  • In containers. There are special containers for bulk loading. The alternative is bagged.

What container size can you offer and what is the capacity?

Usually the 40 ft. container is not a big gain in relation to 20 feet containers. This is because the 40 ft. containers can not be filled as they have a max. weight close to the 20 feet containers. However, shipping lines often prefer 40ft containers to Asia.

  • 20 ft packed
  • 20 ft bulk - 23 metric tons of soybean
  • 40 ft packed
  • 40 ft bulk

What is the price difference depending on transportation?

The cheapest is bulk. All the others are put in relation to bulk. Please contact os for the exact pricing.

    Container
    • 20 ft packed
    • 20 ft bulk
    • 40 ft packed
    • 40 ft bulk
    Ship hold
    • Packed

What is the loading factor/stowage factor?

The Stowage factor is the cubic meters necessary for one ton of product. Approximate numbers:

  • Soybeans bulk - 1.4
  • Soybean packed - 1.6
  • Corn bulk - 1.3 to 1.5
  • Corn packed - 1.6
  • Soymeal bulk - 1.8

FOB?

FOB means "free on board" and is our preferred way of working. We will cover all costs concerning transport from our land and the certified product on board the ship in a number of ports in Brazil. The buyer assumes the cost and risk of further transport.

CIF?

We assume all costs and risk from our land to the port of destiny. We will do this if pressured, but it entails a lot more work. Please bear in mind we are not a shipping company and prefer to concentrate on the farming.
C&F is CIF without insurance.

What ports can you ship from?

Our products are only shipped from Brazilian ports. The nearest is around 1500 kilometers from us. The usual ports are:

  • Port of Itaqui
  • Port of Maranhao
  • Port of Cotegipe Bahia
  • Santos (for containers)
  • But we can send our product for shipping to different ports as well

The loading capacity for bulk soybean is 1500 tons per hour for all three ports. So a ship with 30,000 tons capacity would take 20 hours to fill up from empty.

How do you arrive at a certain price per metric ton of product?

The market quotes (CBOT and local) definitely have a weight. Basically we need to make a fair profit. Our costs are many:

  • Preparation of the land, planting, treatment while growing, harvesting, certification, transport, drying and storage, more transport, harbor storage, loading and more certification. To this comes amongst others: risk, financing, insurance and fixed costs. It all adds up. Here in Brazil we have both advantages and disadvantages compared to competing countries. One of our disadvantages are the high costs of transport to the port. We pay up to 4 times more than in Argentina and the USA.
  • Let us know if you want to share some of the costs up front. We can then plant for you and we will give you a very good price.

What are the product specifications for xxx?

Look at the documents page. There we have specifications for our most sold products. You are always welcome to contact us for details.

Can you change your specification of product xxx to from yyy to zzz?

Perhaps. We live up to Brazilian standards and not everything can be changed. You could ask for blue corn in squares and we would probably have to decline. You could ask for max 11% humidity for soybeans and we would do that for an extra cost, as it means more time drying which then leads to a weight loss of the product
But generally speaking, we prefer and advice to stay within industry standards.
Furthermore, due to the way the soybean industry works in Brazil, we mostly sell grade #2 yellow soybean. Similar restrictions exist for other products.

Why is the dollar, USD, exchange rate so important for a company like Primavera?

When we sell a product like soybeans, the price is usually related to the CBOT quote. That quote is always in US dollars. But the internal pricing and costs in Brasil is in the Real, the Brazilian currency. If the dollar goes up, we will get at better price. OTOH machines and pesticides are likely to cost more. Vice versa if the Real goes up in relation to the dollar.

How far are you from the nearest port?

1200 Km by road, but we have possibilities of using rail and river transport a big part of the way.

How many farms do you have?

We have land in 8 separate locations. 5 in Tocantins, 1 in Bahia and 2 in Maranhao. We are always looking for more good land and we are in the proecess of buying more.

How do you calculate the price in USD per metric ton from the CBOT price?

For soybeans the CBOT price is given in US Cents per bushel. One bushel of soybeans is defined to be 60 pounds. 60 pounds is ,45359 kg. There are 36,7439 bushels in a Metric ton.
The formula is thus: 36,7439 * CBOT / 100

For corn the CBOT price is also given in US cents per bushel. But a bushel of corn is defined to be 56 pounds. There is consequently 39,3685 bushels in a metric ton.
The formula is thus: 39,3685 * CBOT / 100

For soybeans meal the CBOT price is given in USD per short ton. A short ton is 2000 pounds.
The formula is thus: CBOT / 2000 * 2204,6341

Check these two pages for more information on calculations and quotes: Weights and Measures and Market Quotes

What are the cycles of soybeans production?

In order to produce soybeans we work with these cycles:

  • 1. Preparation of the land
  • 2. Planting
  • 3. Growth
  • 4. Harvesting
  • 5. Delivery

The wet season in Tocantins is from October to May. It is in this period we grow and harvest our crops. Soybeans are planted from the 25th of October into November. The exact timing has to do with factors such as climate, type of soybean, time, ressources, and an eventual second crop. Soybean takes 90 to 130 days to mature depending on the variety. The harvest will be from February to March with delivery from March into April.

If a second crop of corn is necessary then a precocious variety of soybean (90 days) with early planting is chosen. Thus corn is planted right away after the harvest of soybean. The crop rotation is actually good for the land.

If using irrigation we can plant any time of the year and we can handle three crops per year. It will never be the same crop three times, as crops need to be alternated with other crops. Anyway, we only have irrigation available on a very small area for now.

You can check the documents page or the useful links for more information.