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