#037 - Another Invisible Work Behind Specialty Coffee

Usually, we discuss sourcing challenges, agtech solutions, and marketing opportunities. This time, we discuss credit.

Direct trade of specialty coffee demands capital. Therefore, credit is a key topic for us.

Meiero is being built to have one of the lowest costs of capital in the industry. It is about prioritizing safety, transparency and compliance over growth - always.

From the beginning, we made structural decisions aimed at reducing our long-term cost of capital. We were fully funded by equity. We incorporated our family history as coffee producers. We invited competent friends from decades-long relationships to join the project. We chose a conservative hedging policy. We opted to work with specialty coffee. We focused on long-term partnerships. We built scalable infrastructure using professional independent service providers. We built in public. We incorporated as a Dutch BV company. We reserved capital to be invested contingent on milestones. In the long term, we will be compensated through equity distribution, as our operations become profitable.

Equity is the best way to protect the company during hard moments and to increase its impact when things go well.

We must also constantly remind these points in public. At some point, these points will justify our partners joining our cap table. When it happens, it will be the consequence of work conducted invisibly and slowly.

During the last few weeks, Andre visited clients while Renato handled financing initiatives. The full compliance experience is tough, but it is gratifying. This process only improves our operations. We are here for the long term.

Highlights:

• Coffee Futures KC Price in NY (ICE Arabica Dec ‘26 - KCZ26): Down -6.67% from August 28, 2026 (312.85 cents/lb) to September 4, 2026 (closing at 292.00 cents/lb).

• Coffee Price in Brazil’s B3 in USD (B3 Arabica Sep ‘26 - ICFU26): Down -2.52% from August 28, 2026 ($378.60/bag) to September 4, 2026 (closing at $369.10 per 60kg bag).

• BRL/USD FX Rate: -0.74% weekly move (USDBRL shifted from 5.192 BRL/USD on August 28, 2026, to 5.126 BRL/USD on September 4, 2026).

• Proxy of 20’ Container Freight Prices (Santos to Rotterdam): Eased ~1.95% weekly (covering the period of August 28–September 4, 2026) to approximately $1,450–$1,550 per 20ft container.

• EUDR Scope Expansion & Processed Coffee Rules: The European Commission formally confirmed the inclusion of soluble and processed coffee extracts under the EU Deforestation Regulation (EUDR) product scope, setting the compliance deadline for these processed formats to December 30, 2027.

• EUDR Global Supply Chain Restructuring: A landmark study revealed that major international traders are restructuring non-EU supply chains to meet EUDR due diligence standards across all sourcing streams, as operating separate compliant and non-compliant operations has proven cost-prohibitive.

• Drive-Thru Coffee M&A Activity: 7 Brew outbid competitor Dutch Bros with a $143 million offer to acquire 73 real estate locations from bankrupt fast-casual operator Salad and Go, reflecting intense competition for drive-thru coffee footprint expansion in the U.S.

• Emerging Market Export Dynamics: Vietnam’s domestic processing expansion and India’s surging coffee export revenues highlighted a structural demand shift toward Robusta and instant coffee formats across emerging consumer markets.

• Trader Hedging & Brazilian Crop Pressure: Expanded harvest forecasts out of Brazil (StoneX raised 2026/27 crop estimates to 77.2 million bags) triggered increased commercial origin selling on ICE, keeping global prompt prices capped below the 300 cents/lb threshold.