China's Luckin Coffee signs deal with Brazil to buy some 4 million bags of coffee

Luckin Coffee

19/11/2024 23:50

RIO DE JANEIRO/SAO PAULO, Nov 19 (Reuters) - China's
Luckin Coffee  LC0Ay.MU  signed an agreement to buy 240,000 tons
of coffee from Brazil during the 2025-2029 period for some $2.5
billion, Brazil's trade ministry said in a statement on Tuesday.
    The deal represents about 4 million 60-kg bags of coffee,
according to the government and a coffee exporting group
spokesperson. 
    The account is equivalent to more than half of China's
expected consumption of 6.2 million bags of coffee in the
2024/2025 season, according to data from the U.S. Department of
Agriculture.
    China has been increasing its coffee purchases from Brazil,
the world's largest producer and exporter.
     Luckin Coffee in June announced a deal to buy $500 million
worth of coffee from Brazil this year.

 (Reporting by Rodrigo Viga Gaier in Rio de Janeiro, Roberto
Samora and Andre Romani in Sao Paulo; Writing by Isabel Teles;
Editing by Lincoln Feast.)
 ((Isabel.Teles@thomsonreuters.com;))