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Green coffee Association warns on synthetic bags


By Leslie Josephs

April 4, 2012

NEW YORK (Dow Jones)--A coffee trade group Wednesday warned importers and exporters about the use of bags made of synthetic fiber, a material that could fail to show damaging water content in beans.

"With the increasing availability and use of synthetic bags, we feel it is critical to caution suppliers about GCA contract requirements so that they can continue to conduct lawful commerce and preserve the integrity of the U.S. commodities market," said Brian W. Loughman, chairman of the Green Coffee Association.

The New York group, whose contract templates are used widely in the coffee trade, said some green, or unroasted, coffee suppliers were using bags of woven polypropylene and other non-natural fibers to ship coffee.

Under GCA contract rules, bags must be made out of natural materials such as jute or burlap, and both parties must agree on the alternative packaging material at the time of contract negotiation.

Don Pisano, GCA's chairman of traffic and warehousing and a vice president at coffee trader American Coffee Corp., said synthetic bags had been detected on shipments from Brazil over the past year. Brazil is the world's top coffee producer.

The Brazilian Coffee Exporters Council wasn't immediately available for comment.

The problem, Pisano said, is it is unclear whether the man-made fibers would show moisture in the bags.

"You wouldn't want moldy beans to enter the supply chain," he said.

Ric Rhinehart, executive director of the Specialty Coffee Association of America, said "Water stains on bags are a warning sign for buyers."
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Leslie Josephs, Dow Jones Newswires; 212-416-4055; leslie.josephs@dowjones.com
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Ed's Note: Following is the full text of the Press Release that was received directly from the Association .

Green Coffee Association Cautions Suppliers
On the Use of Synthetic Bags to Ship Contract Coffee

Terms of GCA Contract Require Natural-Fiber Bags
Absent Negotiated Terms at Contract Signing

New York, NY (April 4, 2012) - The Green Coffee Association announced today that it has issued an industry missive clarifying Green Coffee Association contract requirements in the face of the expanding availability and use of synthetic bags. The GCA contract is the industry-standard platform governing most transactions involving the purchase and shipment of green coffee worldwide.

"True to the purpose and letter of the GCA contract, Association leadership seeks to ensure that green coffee commerce continues to be conducted in an orderly, reliable and legal manner," said GCA Chairman Brian W. Loughman. "With the increasing availability and use of synthetic bags, we feel it is critical to caution suppliers about GCA contract requirements so that they can continue to conduct lawful commerce and preserve the integrity of the U.S. commodities market."

GCA notes in the missive that it became aware that certain green coffee suppliers were using bags made of woven polypropylene and other non-natural fibers to ship coffee against commercial engagements negotiated under Green Coffee Association Contract terms and conditions. Under contract provisions, both parties have the right to agree to terms and conditions not incorporated in the contract, including alternate packaging. However, the contract is clear that any such outside terms must be agreed to at the time of contract negotiation, or following negotiation but prior to shipment, with both parties fully knowing and accepting the alternate packaging conditions.

The Green Coffee Association contract provisions on packaging are as follows, as noted in the communication:

"Packaging

The two common forms of packaging for green coffee are natural fiber bags and bulk container liner. Green coffee is also shipped in synthetic fiber supersacks. The most common form of packaging for soluble coffee is the cardboard carton, with a plastic liner. All forms of packaging must conform to food grade packaging standards at the country of destination.

Coffee bags are to be made of sisal, henequen, jute, burlap, or similar woven material, without inner lining or outer covering of any material, properly sewn by hand and/or machine."

GCA Advice

Based on the above, the GCA's advice is clear. "The Green Coffee Association recommends that any deviation from the above GCA 'Packaging' clause must be clearly detailed in any negotiated GCA contract form or in subsequent written amendment indicating the mutual understanding and agreement of the contracting parties."

The  full text of the GCA missive is available on the GCA website, www.greencoffeeassociation.org.

About the Green Coffee Association
The Green Coffee Association, Inc., incorporated in 1923, is the leading trade association dealing exclusively with green coffee in the United States. Its mission is "to maintain just and equitable principles and establish uniformity of commercial usage among its members; to provide and regulate a suitable room or rooms for the uses of the Association; to acquire, preserve and distribute valuable business information; to adjust controversies and misunderstandings between its members; to correct abuses; and generally to promote, increase and benefit the coffee business." 
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Contact: Joe DeRupo 212-766-5854

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