New Green Coffee Bean Trading Flow
Today, I’d like to talk a little about importing green coffee beans.
We’ve just received new coffee from Guatemala.
*Guatemala La Esperanza
This coffee is being traded with a new importer.
Until now, I have only sourced beans where I could fully understand everything, from the producer and the exporter in the origin country to the storage in Japan.
*Rwanda Gako Farm
This new initiative involves fully disclosing the costs from the origin country to Japan, in other words, the _**breakdown of the purchase price**_.
Even though we knew the purchase price, we didn't know the details of it (I suppose we would if we handled the imports ourselves).
Until now, we've never had a transaction where we could understand precisely what percentage of the price we paid went to the producers (though that's probably unavoidable for a small coffee shop like ours).
And major companies don't disclose this information either.
Japanese trading companies don't specifically announce it (and I don't think a single person at a trading company would even know).
But I think that's perfectly normal.
*Warehouse before export @ Rwanda
For example, it's like asking a nearby bakery for the [raw material costs], [sales and administrative expenses], and [profit] of their "anpan" (red bean bun).
However, knowing this breakdown allows us to better understand the current situation of the producers.
And because it shows that there is no exorbitant profiteering (reducing the producer's share and significantly increasing profit), we can trade with peace of mind. (I wouldn't want to buy such coffee, even if it were high quality and incredibly delicious.)
TYPICA is doing this.
https://typica.jp/
They also plan to create a platform that connects producers and us in the future. As for us, we can't wait for this, as it will allow us to have deeper communication without having to travel to the origin country.
It has just started, but we intend to continue supporting it.
Finally, here is the breakdown of the purchase price.
Producer (51%)
PrimaVera Coffee (exporter) purchases coffee cherries or parchment coffee from over 250 small-scale producers, processes them at their own mills, and exports them. This price is what is paid to small-scale producers (Mr. Francisco Morelas).
Processing (5%)
Total of warehousing, logistics, processing, sorting, packaging, and taxes paid to Anacafe in the production area.
Shipping Costs (14%)
Total of ocean freight (freight, fuel surcharge, loading registration fee, bill of lading issuance fee, etc.) and domestic costs (customs clearance fees, food import notification application fees, plant quarantine application fees, etc.).
Import Consumption Tax (5%)
Ocean freight and product price (FOB = price to the local port quoted by the exporter)
Import Fee (23%)
Through these revenues, we will nurture a platform that enables better direct trade between coffee producers and roasters worldwide and enhances coffee sustainability.
Consumption Tax (2%)
Taxable items for import costs within Japan (container unloading fees, document preparation fees, etc.)
*Guatemala La Esperanza
This coffee is being traded with a new importer.
Until now, I have only sourced beans where I could fully understand everything, from the producer and the exporter in the origin country to the storage in Japan.
*Rwanda Gako Farm
This new initiative involves fully disclosing the costs from the origin country to Japan, in other words, the _**breakdown of the purchase price**_.
Even though we knew the purchase price, we didn't know the details of it (I suppose we would if we handled the imports ourselves).
Until now, we've never had a transaction where we could understand precisely what percentage of the price we paid went to the producers (though that's probably unavoidable for a small coffee shop like ours).
And major companies don't disclose this information either.
Japanese trading companies don't specifically announce it (and I don't think a single person at a trading company would even know).
But I think that's perfectly normal.
*Warehouse before export @ Rwanda
For example, it's like asking a nearby bakery for the [raw material costs], [sales and administrative expenses], and [profit] of their "anpan" (red bean bun).
However, knowing this breakdown allows us to better understand the current situation of the producers.
And because it shows that there is no exorbitant profiteering (reducing the producer's share and significantly increasing profit), we can trade with peace of mind. (I wouldn't want to buy such coffee, even if it were high quality and incredibly delicious.)
TYPICA is doing this.
https://typica.jp/
They also plan to create a platform that connects producers and us in the future. As for us, we can't wait for this, as it will allow us to have deeper communication without having to travel to the origin country.
It has just started, but we intend to continue supporting it.
Finally, here is the breakdown of the purchase price.
Producer (51%)
PrimaVera Coffee (exporter) purchases coffee cherries or parchment coffee from over 250 small-scale producers, processes them at their own mills, and exports them. This price is what is paid to small-scale producers (Mr. Francisco Morelas).
Processing (5%)
Total of warehousing, logistics, processing, sorting, packaging, and taxes paid to Anacafe in the production area.
Shipping Costs (14%)
Total of ocean freight (freight, fuel surcharge, loading registration fee, bill of lading issuance fee, etc.) and domestic costs (customs clearance fees, food import notification application fees, plant quarantine application fees, etc.).
Import Consumption Tax (5%)
Ocean freight and product price (FOB = price to the local port quoted by the exporter)
Import Fee (23%)
Through these revenues, we will nurture a platform that enables better direct trade between coffee producers and roasters worldwide and enhances coffee sustainability.
Consumption Tax (2%)
Taxable items for import costs within Japan (container unloading fees, document preparation fees, etc.)