SAO PAULO (Reuters) -Brazilian trading company Timbro has added coffee to its portfolio, as it sees room to expand in the sector after traditional traders lost ground due to volatility and record prices over the past year.

Timbro, which has become one of Brazil's key sugar exporters, also trades other products ranging from iron ore to cotton, and handles imports of aircraft, cars, heavy equipment and various goods for Amazon.

"I believe we entered the coffee market at the right time, a very complicated moment for the sector," Timbro's partner Caio Melles told Reuters in an interview.

After posting revenue of 18 billion reais ($3.30 billion) last year, the firm is entering a market that has been lacking companies capable of tracking production, pricing, and ensuring delivery, which creates an additional opportunity for Timbro, Melles added.

Timbro already had financial operations with cooperatives and large coffee producers, but the 2025 crop year will be its first full physical operation, something the company had not previously disclosed.

Melles joined Timbro when it was founded in 2010 by Jorge Guinle and Bruno Russo. Melles initially handled imports.

In the first year, coffee volumes are expected to remain relatively small, with the company aiming to trade around 80,000 60-kg bags, as it starts slowly.

In the sugar sector, Timbro's traded volumes are expected to stabilize after jumping to 2 million tonnes in 2024 from 300,000 tonnes in 2018. This year, the company marks a milestone with the start of commercial operations in the United States.

Another key development in 2025 was the opening of an office in Dubai, which was a strategic move to strengthen relationships with key clients and operate more efficiently across time zones.

Similarly, the company is expanding further in Asia to "operate on Chinese time," given China's importance as an importer of Brazilian commodities, Melles said.

Currently, about 65-70% of Timbro's business is focused on exports, with 30-35% on imports.

SOY AND CORN

Timbro still plays a more limited role in corn and soybean exports, Brazil's top agricultural export commodities. Grain operations, Melles said, require integrated logistics to be profitable, something the company plans for the future.

"We're doing a few soybean and corn shipments, maybe half a dozen of each this year, still very limited," he said, adding that Timbro is considering a potential partnership for grain logistics.

In the steel and minerals unit, with more than 1 million tonnes expected to be exported to China and Europe this year, Timbro is expanding operations by initiating due diligence processes for new mining assets.

($1 = 5.4519 reais)