Get answers to frequently asked Questions
How is the product shipped from the Farms (fazendas) to harbour storage?
The product is sent from the farms to temporary storage in a storage unit where the product is classified, cleaned and dried.
Then the soybeans or corn are shipped to the harbour in a combination of trucks, rail and river. Mostly by trucks - river and rail never by itself. We are excited by the new river transport from Tocantins to the ocean as it will be cheaper and much more efficient.
Is the product certified?
Samples of the product are taken while it grows. 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.
We are often asked for samples or test of our soybean. We can provide this. But consider: This will rarely be the product the client will actually receive unless it is small quantity that is sitting in our storage. The product sent to the client is often not even planted yet. If it is a large quantity the product will come from many different farms and storage units.
Bulk or packaging?
Soybeans and corn can basically be transported on ships in the following manners:
> Bulk. The soybeans are sent into the holds of ships from the harbour storage through tubes. Loading capacity at up to 1800 tons per hour
> Packed in bags. NON GMO must usually be packed in bags. Popular options are bags of 50kgs each or big bags of one metric ton.
> In containers. There are special containers for bulk loading. The alternative is bagged.
Soybean NON GMO is mostly sent by container or in bags to avoid contamination. Soybean meal is usually bagged. Sugar and coffee is always 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.
Some clients only want to receive 20 ft containers because of shipping at the destination by truck.
> 20 ft packed
> 20 ft bulk - 23 metric tons of soybean
> 40 ft packed
> 40 ft bulk - up to 27 metric tons of soybean
What is the price difference depending on transportation?
The cheapest is bulk. All the others are put in relation to bulk.
In bags the product becomes more expensive because because of loading and the bags themselves.
Please contact os for the exact pricing.
> 20 ft packed
> 20 ft bulk
> 40 ft packed
> 40 ft bulk
> Ship hold
> Small bags - up to 60 kg
> Big bags
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 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.
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.
CFR/C&F is CIF without insurance.
Ex-works - directly from the farm or storage unit. This term represents the seller's minimum obligation, since he only has to place the goods at the disposal of the buyer. The buyer must carry out all tasks of export & import clearance. Carriage & insurance is to be arranged by the buyer.
What ports can you ship from?
Our products are shipped from any ASWP ports depending on our Supplier Choice, and we can send our product for shipping to different ports as well. The loading capacity for bulk soybean is 1500 - 1800 tons per hour for all any port in general. So a ship with 30,000 tons capacity would take roughly 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:
Certification, transport, drying and storage, more transport, harbour 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 ask our Manufacture suppliers plant for you and we will be able to give you a very favourable 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 and other Country standards and not everything can be changed. You could ask for blue corn in squares and we would 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 group number 2 yellow soybean - also called export quality. Similar restrictions exist for other products.
What is Brazilian yellow soybean group #2 and is the same as US grade #2?
The stand specification for soybean is export quality Brazilian soybean group 2. It is defined by Brazilian legislation and is somewhat equivalent to US grade #2.
It is generally the specification for soybean exported from Brazil. It is based on contracts from ANEC - Associação Nacional dos Exportadores de Cereais - you can see the contracts here: http://www.anec.com.br/pt-br/servicos/contratos
Generally speaking, Brazilian soybean will have less split kernels and more protein content than US grade #2 as the Brazilian soybean is transshipped less and the climate is better here.
There is a possibility to adjust the quality specs of the soybean. But in such large quantities, where part of the soybean come from other producers, we can only make guarantees according to the standard specification. At the most we can make minute adjustments.
However, Brazil is the largest of soybean exporter in the world and it is used successfully to make soybean meal and oil in many countries - especially China.
Soybean specification - Brazilian soybean
Some customers nearly always ask for high/higher/different protein content.
We guarantee protein content: Basis: 35%, minimum 34,5% - and not more - this is non negotiable.
All things equal, Brazilian soybean will on an average have more protein than American soybean due to a better climate - but it changes from region to region from year to year.
Product Specification & Grade:
Brazilian Soybeans GMO grade #2
Type: for human consumption
Moisture: 14.5 max
Protein: 35% Max
Foreign matter 1% Max
Heat damaged kernels 0.5%
Total damaged kernels: 3%
Free of the following: no radiation; no insects no pests and no poison; no rocks, gravel, sand, larger
pieces of wood or any particles that are harmful to human consumption
Brazilian Yellow Soybeans
The above soybean is known as Brazilian Yellow Soybean Group 2, export quality, standard type, and is a soybean used for crushing world wide. This is defined by Brazilian legislation
American Yellow Soybean grade #2
It is somewhat equivalent to American Yellow Soybean grade #2. Here are the American specifications.
We can to some small degree at an additional cost change the specification. The most common changes are:
- humidity (a little bit lower at a higher price per ton)
- split beans (maximum 20% - never less)
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 some possibilities of using rail and river transport partway.
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
What are the cycles of soybeans production?
In order to produce soybeans farmers work with these cycles:
1. Preparation of the land
The wet season in Cerrado plains is between October and May. It is in this period farmers grow and harvest the crops. Soybeans are planted from the mid of October into November/December. The exact timing has to do with factors such as climate, type of soybean, time, resources, 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 outside of the legal moratorium and farmers handle three crops per year. It will never be the same crop three times, as crops need to be alternated with other crops. Anyway, Farmers only have irrigation available on a small areas for now.