Starting a coffee project

[Jazzman59]

hi everyone,

i m studying a trading company master and 5 persons and me have chosen to make a project on import export coffee. In our business plan we must include a third country to modify o add some value to our product. I DO realise the complexity of the project. that s why I ask some help.
Where to start ? Is there a good niche market for green bean import ?
Is it really realist to think we can have profitable business by importing some coffee and selling it ?
In brief. What do you recommend me ?
Thanks a lot to all of you !

 

[Bereka]

Nothing is impossible. You just have to do more research. There are plenty of thread on this forum on import export and anything related to your project.
Try to use the quick search box on this website top right corner, using a keyword like import, FDA and Licensing, Warehousing,
good luck and Happy New Year

http://www.coffeeforums.com/forum/business-business-b2b/4838-how-import-coffee.html

 

[Mr.Peaberry]

Coffee is the most universally consumed product on the planet, and the supply chain for green coffee is well established. If any untapped niche markets exist for green coffee import or export, I would be shocked. Basically, you would be entering into a crowded industry to try your luck.

As far as a realistic evaluation of your potential for success, use the 3E's; experience, equity, expectation. What experience/contacts does the team have in dealing in the supply chain of green coffee? How much capital investment will be required; how much sweat equity is required, and how much of each is the team able to provide? Lastly, business decisions are typically made based on a "vision" of company objectives and goals. The goals and benchmarks need to be realistic and attainable otherwise the decisions made early on could kill the business. If you want to be successful but lack experience, buy it or hire it (consultant or employee). If you lack capital...you need to be a good salesman/saleswoman to sell your plan to an investor...you need to show a favorable ROI. As far as expectation, I think you will find with this kind of business, you may have to plan for a longer than usual interval before arriving at the break even point, especially if the team is planning to use the capital raised to cover salaries or pay employees. Not sure if helps. You have to weigh the pros and cons in order to decide if the opportunity is attractive enough to proceed.

As far as getting anyone in the trade to cough up information about untapped niche markets...good luck!! Just sayin'...

 

[Bereka]

Well said Mr. Peaberry

 

[singlecupcoffee]

You can consider whole solution for business from roasted coffee, to coffee equipment.
We have some stable single cup packaging equipments at saneu.com

 

[Jazzman59]

Hey thanks a lot for your answers ! Really appreciate it ! I love take all into account.
It is really more profitable to import from Africa instead South America to save budget in our export process to Japan. Or it is quite the same on prices level ? Maybe it could be easier for us to import from Central America. But as you said before we have to be realistic and it may be far from Japan. What do you recommend you ? I have to choose a producer above all to establish costs and budget. Thanks if you can help me

 

[ensoluna]

You shouldn't be concerned about the distance from Africa or from Central America. You need to check the 20' container rate. When there are more traffic between each countries, the freight charge will be less.

You should concentrate on market's needs (supply & demand), then, research what to buy from different countries.

Also, in order to buy coffee at better pricing, you need to check the each country currency situation. As example, in Guatemala, the currency against US$ has not changed for many years. On the contrary, in Ethiopia, their currency dropped more than 100% in last few years. Since all the commercial activities are done by US$, this is very important point.

also, you need to check the economic situation of each countries. As example, buying from Kona island (Hawaii) will be two times more expensive than buying from Guatemala (same quality of beans), just because it is more than twice expensive to keep the farm and do the processing in Kona than Guatemala.

 

[Jazzman59]

Thanks for sharing your opinion ! Always helpful. I Do realise that nothing will be easy and that's why I m working every day on knowing more and more on coffee industry ! Nevertheless I would like to know if there some opportunity considering we are endeavouring in managing the whole import process to try to optimise the costs and be competitive avoiding to contract a customs broker or logistics professional. Someone we do need is an expert in coffee who can guide us in the selection of the coffee and the roasting aspect. To be clear and not spreading out, I ask you directly how can i choose a fairtrade coffee producer ? What I require to know about him to make a good decision ?
Except that it is complicated project. The MORE important for me is to learn !

 

[Jazzman59]

Guatemala and Honduras could be good choices for a fairtrade high quality coffee ? I ve just sent mails to check prices.
I was opting for Ethiopia at the beginning. Considering that the distance is not so important and the currency situation complicated. I should reconsider it ! Once chosen the producer the roaster and analysed Japanese market which is demanding high quality coffee we will more independent to achieve our business plan.thanks for your advices. Every day I m learning more even its a long way to become professional !

 

[ensoluna]

I ask you directly how can i choose a fairtrade coffee producer ? What I require to know about him to make a good decision ?
Except that it is complicated project. The MORE important for me is to learn !

Most of the coffee exporters and coops will have fairtrade coffee certificates.
you just need to ask them whether they have fairtrade certified coffees.
it is just a pc of paper. but you will pay some premium $ over coffee pricing.

it is more of a marketing "stuff" for rich coffee importers/roasters/retailers than something valuable to help the farmers.

 

[ensoluna]

Guatemala and Honduras could be good choices for a fairtrade high quality coffee ?

Almost every coffee country will offer fairtrade coffee. honestly it would not matter where you buy from if you are only concerned about fairtrade.