After farms and gins, Brazil is now investing in certifying the cotton export shipping terminals
Brazilian cotton |
In foreign trade, maintaining the product in good condition up to its final destination is one of the main concerns of importers and exporters. In the case of Brazil, the largest cotton exporter in the world, this challenge is even greater. The cotton bales are stuffed in containers before traveling over distances ranging from 11,700 km, in the case of Egypt, to 20,700 km, in the case of South Korea – with an average transit time of 19 days.
To ensure that cotton shipments reach the purchasing countries undamaged and in good condition Brazilian cotton growers, in partnership with the main exporters, set up a good practices protocol in 2023. This sets out specific procedures for retroport terminals (these receive the cargo from farms en route to the shipping ports) which are linked to social and environmental requirements.
The protocol utilizes the more than ten year’s experience gained from the “Responsible Brazilian Cotton” program, which is the Brazilian standard for socio-environmental certification of Brazilian farms. Created in 2023, the protocol is called ABR-LOG and in its first year of operation it surpassed the initial target.
In the 2023/24 marketing year, 42% of all cotton exported by Brazil was shipped through one of the six terminals certified by ABR-Log.
“Our initial target was 30%. But the practical benefits of the protocol have led more companies to join,” says Alexandre Schenkel, president of the Brazilian Cotton Growers Association (Abrapa).
In terms of volume, this means that 1.1 million tonnes of exported cotton passed through terminals approved by ABR-Log. And the expectation is that these numbers will continue to grow. In the 2024/25 season, the official estimate is that Brazil will harvest 3.7 million tonnes of cotton and export approximately 2.8 million tonnes.
“Our goal is that at least 50% of the cotton to be exported will be stuffed in terminals accredited by ABR-LOG,” says Mr. Schenkel. Abrapa is the association that unites Brazilian cotton growers, representing 99% of cotton production and 100% of the exports.
How it works
To prevent package tearing and subsequent soiling or contamination of the cotton, ABR-LOG provides a list of good container stuffing practices to be followed. In addition, participants must demonstrate compliance with specific laws and regulations and undergo annual audits carried out by independent companies. In the 2023/24 season, the auditing company was Control Union.
In addition to these specific procedures, terminals that are ABR-Log accredited must also comply with all the original items of the ABR program, which include social and environmental aspects.
In terms of social aspects, the focus is on ensuring decent working conditions and respect for human rights. Environmentally, terminals are encouraged to adopt sustainable waste management and energy efficiency practices.
Joining ABR-Log is voluntary. In the 2023/24 season, the companies certified were: St. Magellan & Essemaga and Hipercon Cargo Terminals (in Santos/SP), Louis Dreyfus Company (LDC) and S. Magalhães & Essemaga (in Cubatão/SP), Brado, in Rondonópolis (MT), and Tecon in Salvador (BA).
In detail
The ABR-LOG protocol was set up by Abrapa in partnership with National Cotton Shippers Association (Anea) with the support of the Brazilian Trade and Investment Promotion Agency (Apex-Brasil). It falls withing the scope of the Cotton Brazil program which is an Abrapa program representing the Brazilian cotton production chain on a global scale.
Miguel Faus, president of Anea, reports that the positive changes resulting from the implementation of ABR-LOG are already noticeable by importers of Brazilian cotton. “We received feedback that attests to the positive impacts. One example is Türkiye: there, buyers have noticed a distinct improvement generated by the protocol”, he pointed out.
Abrapa’s investment in ABR-LOG is one of the many actions being taken by Brazil to maintain its leading role in the global cotton market. “This represents the joint work our sector has done with a view towards a common goal: strengthening Brazil’s position as a global reference in the production and export of cotton,” added Alexandre Schenkel.