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Best Market Entry Strategy to export coffee from Colombia to Australia

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oscar pulido

on 31 October 2014

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Transcript of Best Market Entry Strategy to export coffee from Colombia to Australia

Best Market Entry Strategy to export green coffee from Colombia to Australia
`
SBM1300 – Project Research
Dr. Sharon Ayson (Mentor)

Oscar A. Pulido Lopez
1. Project Overview
2. Case Company Overview
3. Literature Review
4. Fieldwork and Information Gathering
5. Data Analysis
6. Recommendation and Conclusions
Best Market Entry Strategy to export green coffee from Colombia to Australia
Best Market Entry Strategy to export green coffee from Colombia to Australia
Agenda
1. Project Overview
Risks
Specific requirements for export green coffee beans to Australia
Direct Exporting
Partnering
Set up local office
Strategic alliance with another organization
Acquisition or merger with a well established local business
Franchising
Interview Questions
4.Fieldwork and Information Gathering

What is the best market entry strategy to export green coffee beans from Colombia to Australia?
Develop the best market entry strategy minimizing risks and uncertainty to export green coffee beans from Colombia to Australia.

Project Objective
Research Question
Conceptual Model
Valle del Cauca
Coffee crops are located
in a
mountainous area
2300m above sea level.
Excellent quality soils.
Favourable temperature range
between day and night.
Gentle winds from the Colomb
ian Pacific.
These are excellent conditions
for coffee production.
59 years of knowledge
on how to grow coffee from seed to cherry collected, as well as the process of washing and fermentation coffee (WET PROCESS) and trading process in Colombia.

Company experience
Coffee location
2. Case Company Overview
TRUJILLO
parchment coffee
Milling Process
Cleaning
coffee threshing
Classification
100% Arabica Coffee
0.056%
Third Coffee exporter in the world
Colombia is known as the smoothest coffee producer in the world
Green coffee beans tend to be the preference of buyers primarily because it is fresh and it is easy to add value or create their own blend.
The ‘coffee culture’ has become an integral part of the Australian lifestyle. Consumer tastes are becoming increasingly sophisticated in their search for a coffee experience
Percentage of Australian Imports share 0.430%
Market Entry Strategies
commercial consignments of green coffee beans must:
Be accompanied by a valid Import Permit or by means to allow the identification of the Import Permit.
Be free of live insects and other quarantine risk material prior to arrival in Australia;
Be free of fruit pulp before arrival in Australia;
Be packed in clean and new packaging
An official International Phytosanitary certificate;
A packer’s declaration stating - “The container(s) covered by this document has/have been cleaned and is/are free from material of animal and/or plant origin and soil”;
Containers, timber packing, pallets or dunnage associated with the consignment to be inspected and treated on arrival, unless it has been certified as having undergone an approved AQIS treatment method.

Transaction Risks (Hilten, 2011)
5. Data Analysis
Interview Answers
Answer 1
5. Data Analysis
Interview Answers
Answer 2
5. Data Analysis
Interview Answers
Answer 3
Standard coffee round screen dimensions
Screen number 10 12 13 14 15 16 17 18 19 20
ISO dimensions (mm) 4.00 4.75 5.00 5.60 6.00 6.3 6.70 7.10 7.50 8.00

5. Data Analysis
Interview Answers
Answer 4
For small green coffee beans exporters, market entry is very effective through a commercial importer with the established systems and infrastructure required to handle and distribute the product effectively.
5. Data Analysis
Interview Answers
Answer 5
The most difficult part to export green coffee is meet the requirements established by The National Federation of Coffee Growers of Colombia because they want to ensure the Colombian quality coffee and in this way keep the good name of Colombian Coffee.
5. Data Analysis
Interview Answers
Answer 6
Price
Currency Change

5. Data Analysis
Interview Answers
Answer 7
Price
Currency Change
5. Data Analysis
Interview Answers
Answer 8
One important factor is build a trustworthy relationship with your buyer or importer, if you make this business will be very easy.
Colombia
Coffee Production
2013: 404,793.5
2014 till Sept: 341,382.5
3. Literature Review
Colombian Coffee Overview
3. Literature Review
Australian Market Overview
3. Literature Review
3. Literature Review
3. Literature Review
3. Literature Review
Quality Coffee
Gap Analysis
3. Literature Review
Exemplary Quality
(18)
High Quality
(16)
Mainstream Quality
(14)
Undergrades Or Lowgrades
(12)
Standard coffee round screen dimensions
Screen number 10 12 13 14 15 16 17 18 19 20
ISO dimensions (mm) 4.00 4.75 5.00 5.60 6.00 6.3 6.70 7.10 7.50 8.00

Is really important have a record system about coffee production, because it would help us to make secure contracts according to coffee availability.

Over the past five years, the importation of green coffee beans has gradually increased by approximately 19% in Australia.

Is crucial for small green coffee beans exporters, generate a trustworthy and effective relationship with a commercial importer.

Regarding with trade barriers and tariffs, there is a good relation between Colombia and Australia Governments, and they have been trading green coffee for long time. Thus, currently there are no tariffs costs involve with green coffee importation and also there is no sign of barriers.

Colombian Federation of National Coffee Growers, might be very tough at the moment of analyse coffee to be export. So, is very important to create good relationships between FNC and your business.
6. Conclusions and recommendations
Source: International Coffee Organization
(Hilten, 2011)
(Small Biz Connect, 2012)
Small Biz Connect is funded by the NSW Government
Full transcript