Being a coffee broker

KonaKona

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Jul 6, 2015
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Honolulu, HI
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So let me just start saying that I know little to none about being a broker. I have been working with a lot of farms recently and some suggested I look to get in the broker business. However I have no idea how to even get started in this. I am throwing this out to the coffee forum world and seeing if by chance anyone here is a broker or anyone knows any good resources that could help point me in the right direction.
 

ensoluna

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Apr 29, 2014
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Quetzaltenango, Guatemala
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I guess that you can call me a coffee broker also.

if you have read my profile, you will know that we have couple of farms and an green bean exporting company in Guatemala, but our farms are kind of small and not well utilized for coffee plantation to deliver all the coffee contracts to customers ( in order to fill one 20' container, you need at least 180 acres of VERY WELL PLANNED AND ORGANZIED farm, 90% of land as coffee plantation, but our farms are currently being utilized only 30% of capacity) and exporting company is consisted of six people (including me) which is one of the small size companies, but we are mostly well known for Micro lots and Specialty coffees. so mostly we have to buy green beans from farmers (with exclusive contract) and cooperatives (no contract), working as green bean trading company.

however, if you ask me whether I have a "broker license", I do not. I do not even know what a broker license is.
We have our company business license that we can do it as exporting company and pay tax with that license.
I am not so certain that there is a special business license just for being a broker in Hawaii, perhaps you can check with your city civic office. But since you have your on-line business and that business license, that might be enough to work as a broker.

now, let me explain about a broker (my understanding is this "broker" is just like " green coffee trader" between farmers and overseas buyers. If I am wrong, please let me know.

to be a coffee trader, it is rather simple process ON PAPER.

if you know coffee farms and if you can SECURE some good q'ty from them at good pricing, that is a good beginning.
then, what you need is coffee buyers which you can look and contact via internet or trade shows around the world.
then, offer to send them samples (green bean 300 grams) along with complete information of your beans (altitude, farm name and location, varietal, process, and specially any special certificate or awards if the farm has any...etc) plus FOB port pricing.

if your buyer likes the samples, then, he will buy the coffee that you are offering.

depends on customers, you can collect 30% to 50% in advance, then, buy the beans from farmer (99% farmers want you to pay 100% before he delivers the beans to you) and ship out to your customer. you will send the shipping documents to your buyer and when the container is on water, he will pay the balance.
however, for big buyers, they will want credit and they will pay you when the container arrives to their country. it is all depends on customers. (so basically to work with big buyers, you have to have a big capital to pay to farmers in advance and collect your money from buyer later on. that could be about 6 month difference)

above is VERY SIMPLE PROCESS, but actually, it is a lot more complicated that what I wrote.
if you go into details, I have to write 200 page book on this, so I can not give you all the detailed information here.

but, if you have any other questions, specific questions, I can answer you right away.
good luck to you.
alex from Ensoluna S. A.
 
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