Looking for coffee growers in Colombia,to export in Usa.

[JCP]

Hello,
New member here. I'm looking to start importing coffee beans from Colombia (Leaving tomorrow to Medellin). I have done researches with the three agencies involved with the importation here in Usa,i live in Chicago,IL. The Colombian exporter has to be registered with the FDA, here in US, to be able to export it. My business adventure is to buy coffee beans, directly from the source (The grower), to be exported here in Chicago. Anyone who has experience as an international exporter and any information, please feel free to contact me.We can get into detail, how to do the business transaction. Looking forward to hear from someone.Thanks.

 

[topher]

Welcome to the forums! I do wish you luck on your adventure. Is there a reason you are bringing it to Chicago? Do you have a lot of buyers lined up in that area? You are going to pay to have it shipped to the U.S then shipped to Chicago and then shipped again to your customers. Sounds expensive. How many containers are you planning on bringing in and have you thought about storage? Again welcome to the forum and good luck in Colombia!

 

[JCP]

Hello thanks for your reply. Before I answer your questions, I would like to let you know first, that mine will be a small,very small operation, which will involve me personally, in the running of the business. Unless you are referring to the fact, that has to be done in a very large scale of operation, here in Chicago, are a few roasters, interested in pricing. I can't give them a price, if I don't have the all chain set up first. As I reply, I'm here in Medellin Colombia. I'm meeting with a farmer tomorrow, to discuss pricing and shipping. As far as shipping, it will need to be shipped to US, and then to Chicago, yes. I can personally deliver to my clients.The quantity, will be determined, after I have the chain set up, including shipping and and exportation costs. Once I have this figure done( Before I start anything), then I will be able to evaluate if this is worth to give it a try or not. For the shipping to US,and Chicago, I was considering consolidating it with other shipping in a container, since the amount will be small. Once again, this an idea, that has to be evaluated first. To be honest with you, what scares me the most, are the headaches given to me as an importer , from Us Custom & Border Protection, FDA and Us Department of Agriculture in the importation process. What do you think about this small business plan of mine?

 

[ensoluna]

hi JCP.
first, let me introduce myself, so you know what i am talking about here.
we have a green coffee exporting company in Guatemala, exporting to USA, Taiwan, Australia...etc

my other questions and answers are as below.
1. is this your first time in coffee business? or have you done this before?

2. if you are small, very small, it will be "safer" for you to buy from USA green coffee importers and roast and distribute in your area. Why? you can buy from them cheaper than buying directly from Colombian farmers. Also, the most importantly, the coffee quality can be much better getting directly from reputable USA coffee importers than you get from Colombian farmers that you have never done business before. (I do not want to get into long explanation here, but if you really want to know, i can tell you later on. )

3. I hope that you know how to buy and select coffee. Do you know how to cup Colombian coffee?

4. since you are not going to buy a container of commercial beans, I am assuming that you want to buy specialty micro lots? (86 SCAA point and up?) and consolidate with other goods in one container? Then, make it sure to use GrainPro or vacuum them.

Also, if so, you need to hire an inspection company, so that they can inspect the coffee before the farmers ship to you. Just to make it sure that you are getting what you have bought.

again, there are a lot more questions that I need to ask and curious about, but for now, this will be enough.
good luck.

Alex from Ensoluna S.A.

 

[JCP]

Hello,
Thanks for for your reply. Well, i will start to answering your question, by saying yes, this a totally new business to me, and never done it before. You really think it will be cheaper to buy from USA Green coffee importers? My idea is to evaluate the business plan first, and then do "Marketing", in targeting coffee roaster, to beat competitors on pricing. I think (I'M SURE YOU KNOW MORE THEN ME) getting it directly from the source,after transportation,purchase and shipping costs,will be much cheaper then paying "Retail price",from other importers.I mean, business can be lucky as well, and your suggestion, will be taken into consideration. I also have an "Executive Transportation Service" in Chicago, dealing with airport transportation of executives from corporation to/from airports.What i mean is :"Why would they hire my service for transportation, that costs $ 35-50 more then hire an Uber,(If you're not familiar with it, Uber is ON DEMAND car service),and wait longer to pre-arrenge car service, while can get a car in 5 minutes and pay less? The answer to this question for me was "Time". As i started out charging the same amount as Uber did,in the beginning,and realize that my clients didn't care about price, but only good service. What i think is that roasters already know, which wholesaler buying beans from, so, i think pricing,will be important. As far as "Selecting and buying beans, and to CUP THEM", NO,I DON'T. I'd like you to go into details if you don't mind,please. Also i'd like details on shipping too.You mentioned "Specialty micros lots",I HAVE NO CLUE, WHAT THIS IS,LOL.Nor of " 86 scaa point and up". Also i don't understand to concept of hiring an inspection company, to make sure "I get what i bought". Please feel free to ask me all the questions you want, since i want to learn as much as i can about this business. And, if you want, we can exchage personal contact as well. Thank you.

 

[ensoluna]

if you already are in Medellin, Colombia to look for coffee farms, whatever i say here will not make sense or understand.
In a way, you have to be in Coffee business/industry for a while in order to understand what I am talking about here. so I guess that is catch 22.

however, just to give you some pointers, here are somethings you have to consider when you plan to buy from coffee farms.

1. selecting right coffee
coffee has more varietals than Apple or any other types of fruits. So, you need to know what type of coffee you want to buy.
then, you need to taste to make it sure that coffee is what it should taste like and be able to sell in USA. (this is where "cupper" comes in. Cupper is who taste coffee and make it sure that it is the right coffee with right taste/flavor.)

2. pricing
when you get the pricing from farmer, you must calculate exactly how much it will be for your sales pricing.
farmer pricing + transportation to milling company + milling cost + consolidated shipping cost + customs/port handling fee + inland USA transportation cost + other fees and your profit + handling/transportation cost to your customers...etc.
then, compare this pricing with other company sales pricing of same or similar type of coffee.

3. Inspection company
Not all coffee farms or milling companies are honest. Sometimes you order A coffee, then, they ship B coffee. or they ship lower quality A coffee. that is why you need an inspection company to make it sure that you are getting what you have tasted and confirmed and ordered.

besides above, there are so many other variables and potential problems. Too many to write here.
anyway, i truly wish you the best.

 

[JCP]

Hello again,
Everything sounds clear and makes sense now. What i'm confused is: as far of "What type of coffee to buy", you mean quality like " Arabica ad Robusta" beans? As far i know, Colombia has almost all Arabica which is the better quality,grow in altitude. While Robusta,is a lower quality. Can you give me more infos about this, if this is what you mean? By the way,i'm looking to import only "Green coffee" as i plan to sell it to rosters. You mentioned about tasting, (Cupping), but isn't the roasting temperature, that give coffee the flavor when we drink it? I mean, "Cupping " is part of the Green Coffee importation process too?The transportation to milling Company, as far i know, most of the farmers have mill in their farms, and proceed to "Sun dry Green Coffee",which at this point, should be ready to be roasted/sold/exported. The consolidation shipping costs, is what i wanted to know (Is it done with an international shipping company)? US Customs/Port Handling i'm thinking about hiring a Custom Broker to help clear the shipment. Also.i read it that over $2,500.00 worth imported products,you must clear with a Broker or an Entry Filer,at Us Customs. And yes,of course, the transportation from costs inland in Us,since Chicago is not a port city, has to be considered as well. I'm going to check your website to see if i can get so more infos, meanwhile please feel free to reply.Thanks, Joe.

 

[ensoluna]

Hello Joe (finally a name! not just JCP"enny")

I can see and imagine that most of our forum members are shaking their heads now from disbelief.... You gone down to Medellin, Colombia trying to import coffee directly from coffee farms without knowing any of these are just "courageous" to say the least. By the way, you know... Medellin is not the right place to find a good coffee farm in Colombia, right? I have been to Medellin few times for other business, but it is not the right place for coffee farming. they might have few, but again, not the best place.

Anyway, it is 4am in China and I got couple of hours to kill before I leave to Airport, so "WHY NOT". I am going to give you some more info...

1. what type of coffee : I am not talking about Robusta or Arabica. You are NOT going to buy Robusta. you will buy Arabica, but in Arabica, there are hundreds of different types of coffee.

https://en.wikipedia.org/wiki/List_of_coffee_varieties

2. import only Green coffee : yes, you can ONLY import green coffee, not parchment, nor roasted coffee. Just Green coffee.

3. Cupping : Coffee is Food. so just like buying fish, apple, nuts, bread..etc, you have to "taste" to make it sure that they are good. and what you tasted and chose in Colombia will be same as when you receive in USA. So, when you "cup" (taste) your sample coffee from coffee farm, (apparently since you can not "cup", you have to find someone or hire someone to cup it for you), you are setting the quality standard for exportation. Again, this is very complicated process and even if I explain here, you will not understand. you have to AT LEAST STUDY via internet and understand what it is and what it does.

https://en.wikipedia.org/wiki/Coffee_cupping

4. Most farms AROUND THE WORLD does not have MILLING MACHINE. Milling means taking "parchment" out of green coffee bean and also sorting & polishing the beans before export. Same for "sun dry green coffee". this means after eliminating cherry from parchment, then, you need to dry the parchment on farm's patio until it has 10 to 11% moisture level. Then, it goes to milling factory.

https://en.wikipedia.org/wiki/Coffee_production

Joe, to say frankly, it takes years of experience to become coffee buyer. and I will NEVER be able to explain to you via coffee forum and you will not understand right now. But if you continue to study and pursue this industry, I must say that it is quite interesting and satisfying business, specially working with farmers and workers (in my case).

However, since you are in Medellin, go around and meet some coffee people and visit some farms...etc. I do not know how long you are planning to stay, but keep your eyes and ears open and try to take in as much as you can. That is all I can say.

No matter what it will be a great experience and adventure for you. BTW, as we all know, Venezuela & Colombia has most beautiful girls in the world. And since Venezuela is all screwed up now, only Colombia is the place for visit. And in Colombia, Medellin is THE PLACE for the most beautiful girls. Food is awesome and of course, coffee. in every corner, you will find Juan Valdez coffee logos and small coffee vendors. NOT a bad place for a cup of coffee, but not the greatest either. it is just marketing of Colombia coffee.

 

[wmark]

WOW.......all I can say is that you had better be very careful. I was once lamenting as to how difficult it was to do business in Colombia to a Venezuelan acquaintance. He laughed and said that most gringos just don't know how hard it is as you have to be on the ground to monitor everything. With coffee, it might be a little easier BUT you still need to have the right people expediting your product. Colombia is a very non transparent country for doing business. There are rules but everyone interprets them differently !!!! There does not appear to be top down reinforcement of the interpretation of rules. Hence you have to have the U.S. presidents help you expedite your cargo ..........by that I mean money.

........y una otra cosa, tu habla espanol ?

 

[JCP]

Hello Alex,
Keeping on going on with my adventure here in Medellin.Well, i forgot to mention, i'm here until the 7, as i will leave in the middle of the night (At 3:00am of Tuesday morming). Really, i came down to Medellin, because my Colombian"Special friend" Marcela is from here from Medellin. Before, i was working on the idea of importing coffee,because in May i was in Cali, for one week, involved with a crazy girl from there (I'M GLAD SHE'S NOT IN MY LIFE ANYMORE,LOL),and i came up with this idea. My friend Marcela's aunt, works for a "Cafetero" here in Medellin. The plan was to meet with her boss, to discuss it,but unfortunately is not in town. I have done other researches and met other coffee growers. Just today, as we speak i received a reply from one of my emails sent yesterday. Once again, mine is an idea, and of course, i will get all the details, before i start anything.Of course you exquisite art and expertise, came with years of experience in the industry,and i appreciate you trying to help me, but, i agree, i wont be able to understand much, at this point.On anyway, in the reply, there are quite a few guidelines of the exportation of coffee. Once again, i really would like to exchange personal contact with you, to talk further in this adventure. Let me ask you this:Are you personally involved in the operation? Meaning, what is your title in your corporation? What i mean, is yours a big operation, such as "C Corporation",where you have some many Corporate Officers running the business for you? In other words, if i want to ask you specific questions about the guidelines required, will you be able to help me? For example: When i set up my S Corp,for my transportation business, i have done everything myself online,such as: NAME, TAX ID, NOTICE OF ACCEPTANCE FROM THE FEDS,ECT, and funny to believe it,i'm not even from US, as i'm from Italy living in US. Some of my clients, which have MBA Degree don't even know, how to set up a business structure,nor a word of terminology because they had attorneys and cpa do the work for them.Make sense what i'm asking yo? I want to get into full details of explanation of in order to proceed.Thanks, looking forward for your reply,Joe

 

[JCP]

Hello,
Thanks for looking out for me, but as i already explained to the other member,just starting on this new adventure.Honestly, i really don't know any business who are not hard,to start and/or running. This is just a business. LOL, i really don't know what US President have to do with this. Especially now PRESIDENTIAL ELECTION AROUND THE CORNER (LOL), but besisdes the jokes, i think i got your meaning.Perhaps you're saying that like American says "Money talks,and bullshit walks",right?Well, that happens in any business,in any Country i guess. Ans " SI SENOR, YO HABLO ESPANOL TAMBIEN". Regard,Joe.

 

[PinkRose]

No matter what it will be a great experience and adventure for you. BTW, as we all know, Venezuela & Colombia has most beautiful girls in the world. And since Venezuela is all screwed up now, only Colombia is the place for visit. And in Colombia, Medellin is THE PLACE for the most beautiful girls.

Alex,

Hummmmm..... Beautiful girls?

It looks like you don't "only have eyes" for coffee. :roll:

I hope you have a safe journey back home.

Rose

 

[ensoluna]

ha ha ha, yes beautiful girls.
when I was in other business, I went to medellin few times for "auto show". there, I saw so many beautiful car model girls. that was what I meant.

also, I have to admit that compared to any other Latin countries, Colombian and Venezuelan ladies take care of themselves very well. Maybe that might be the reason that there are so many Miss Universe winners from those two countries.

BTW, let me tell you a funny story. Real story from my previous experience.
from my previous work, I had a very good customer for 20 years, Luis Mariano from Venezuela. He had two kids. And when his daughter turned 18, he asked her whether she wants a brand new car or a boob job. And guess what?! of course, she wanted a boob job and he gave it to her. 18 YEARS OLD!!!!!! (and when she turned 19, he bought her a new car too! what a lucky girl)

My daughter is also 18. when she turned 18, I gave her my mom's 10 year old Toyota.
what about a "boob job"? are you kidding me? we are talking about strict Korean family here. Even if she gets married and turn 40 and wants a boob job with her own money, she has to get a permission from me and that ain't gonna happen. ha ha ha.

I guess there is an huge cultural difference!

 

[ensoluna]

hi Joe.
thank G-d, that I get up early enough to write this every time. Here is my "honest" advise.

PLEASE DON'T DO THIS NOW.

I do not want you to lose money and get hurt. You can ask around, visit places, get more experience...etc while you are in Colombia, but do not commit to anything UNTIL AT LEAST YOU KNOW WHAT I HAVE BEEN TALKING ABOUT.
Coffee business is incredibly complicated and competitive. Even for me, it is very tough to deal with. so, please take my advise and do not do anything hasty.

for personal contact, you can just go into my profile and you will find all the contacts and any other information you need.

Ensoluna S.A. is my company but under Guatemala corporation law and regulation. I am a US citizen. Guatemala corp was made by my Guatemalan lawyer in Guatemala. BTW, I do not do this alone. My partner is Coffee expert Guatemalan who knows in & outs of Coffee business. If you want to do some sort of business in Latin country, you need to find partners in that country who know regulations and few other important things.

Also, if you want to form S Corp in USA, your accountant can do it for you at around $1000.00 fee. and of course, there are lawyers who can do this, but they charge a lot more. A decent accountant knows how to do it. so, you'd better ask your accountant about S corp matter. Honestly, I do not know much either.

 

[Galyean]

importing

My family has coffee in Colombia and I have connections in many different regions un Colombia and can assist