Terra Forte, one of the largest coffee exporters in Brazil, filed for bankruptcy law Wednesday to restructure a million-dollar debt, the law firm that represents the company in the process said.
The company, based in Sao Joao de Boa Vista, in the state of Sao Paulo, accumulates debts totaling more than 1 billion reais (about 216.7 million dollars).
Most of Terra Forte's debts were indexed to the dollar, so, with the rise in the greenback and the fall in the price of grain in the international market, the coffee giant had trouble honoring the loans acquired.
Once the restructuring is completed, the company's objective is to find a strategic partner in the market, according to the defense.
According to data from the Council of Coffee Exporters of Brazil (Cecafé), the employers representing the sector, Terra Forte exports represent approximately 6.5% of the total shipped by the South American country abroad.
The company, according to its website, has the capacity to export 2.5 million bags of 60 kilos per year and a decade ago it came to be considered as the largest producer of coffee internationally.
Brazil is the largest producer and supplier of coffee in the world and only in March exported 2.9 million bags of 60 kilos, volume higher by 10% than the same month of 2018, according to data released on Wednesday by Cecafe .
However, the South American country received 379.1 million dollars for exports of grain during the third month of the year, but had a fall of 11%, compared to March 2018, a drop that was also seen in the price of the coffee.
Brazil exported 35.2 million bags in 2018, which meant an increase of 13.9% compared to 2017 and the best result since 2015, when 37 million bags were sold abroad, and the employers hope to exceed this mark and arrive this year to 40 million.