Louis Dreyfus doubles coffee storage, processing capacity at Brazil's Varginha hub

By Roberto Samora

SAO PAULO, July 1 (Reuters) - Louis Dreyfus Company on Tuesday opened an expanded coffee processing unit in Brazil's southeastern city of Varginha, more than doubling the plant's annual capacity for coffee processing and storage.

WHY IT'S IMPORTANT

Louis Dreyfus is one of the world's three largest green coffee merchants. The company said the Varginha expansion would position the hub as one of the largest and most advanced in Brazil, the world's No. 1 coffee producer and exporter.

BY THE NUMBERS

The Varginha unit's processing capacity is set to reach 2.5 million 60-kilogram bags following the expansion, while its storage capacity was increased to about 1 million bags, Dreyfus said in a statement.

KEY QUOTES

"This expansion will streamline the supply logistics for small and medium-sized coffee growers to meet both domestic distribution and export demand," said Arthur Graf, head of Dreyfus' coffee platform in Brazil.

"Today's opening marks a significant milestone in our growth plans in Brazil, reaffirming our long-term commitment to the country and the national coffee sector," he added.

ADDITIONAL CONTEXT

The Varginha unit in Minas Gerais state is part of Dreyfus's broader coffee operations in Brazil, where it has been active for over 35 years.

The company operates three major processing sites in the country, also including facilities in Nova Venecia and Matipo, alongside seven commercial offices in key coffee-producing regions. The Varginha hub focuses on arabica coffee.