Coffee is the third most consumed drink around the world. This is the reason why coffee suppliers play an important part in the global trading coffee market and are hot partners many foreign traders are finding.
- 1 An overview of coffee suppliers
- 2 Locations of top wholesale coffee suppliers in the world
- 3 What affects the coffee wholesale price of coffee suppliers in the world
- 4 How to identify reliable and scam coffee suppliers
- 5 How to work with reputable coffee suppliers effectively
- 6 Top 4 reputable coffee suppliers to be considered Bổ sung thành top 5 nhé
An overview of coffee suppliers
To start up a coffee business or change to new coffee suppliers, it is necessary to have a deep understanding of coffee suppliers’ information such as their types, products,….
See more: Things about coffee factory revealed by coffee traders
Main types of coffee suppliers
Coffee suppliers are usually business-to-business (B2B) entities, providing services and goods to vendors or distributors. There are two main types of coffee suppliers including direct and indirect suppliers.
- Direct coffee suppliers: usually are the manufacturers or even owners of coffee farms. Their products are often raw coffee beans (green coffee beans) which can be sold to a vendor or distributor who then provides for the final customer directly.
- Indirect coffee suppliers: often are not manufacturers, merely working as a middleman getting products from the manufacturer then supplying them to other smaller businesses. Therefore, the price of coffee from indirect suppliers can be higher than that of coffee from direct ones. Indirect suppliers usually provide processed coffee such as coffee powder, roasted coffee, … owing to their own high-tech machine.
To conclude, direct coffee suppliers are the majority since they can provide large output and coffee requires specific natural conditions to give the best quality and production. When searching for a coffee supplier, buyers can consider both the pros and cons of each type of supplier. The direct ones can satisfy buyers with their huge, stable quantity of high-quality products of reasonable price while the indirect supplies can provide them with lower volume and higher price, targeting classy drinkers.
Main products provided by coffee suppliers
Worldwide coffee suppliers provide mainly 3 types of coffee including Arabica, Robusta and Liberica. Each coffee has its unique flavor, aroma or even price which meets some of customers’ special preferences.
Arabica is the most popular coffee, accounting for about 60% of the total coffee consumption in the globe. Arabica coffee is separated from beans of the Coffea Arabica plant, which originally came from the southwestern of Ethiopia. However, the majority of this coffee is from the South American area, in which Brazil takes the first place in producing Arabica beans. Intense aroma, chocolate-like and caramel taste, and harsh cultivation practices are reasons making the wholesale Arabica coffee beans price highest among that of others in the coffee market. Therefore, it is a popular product that many coffee suppliers are trading in the global market. In the last 3 years, Arabica’s price has experienced an upward trend from 2930 USD/MT in 2018 to 3320 USD/MT in 2020. On average, its price is 1,5 to 2 times higher than Robusta’s price in the market. The leading Arabica importing countries are Europe, UK and Japan,… which appreciate the best quality and high nutrient of coffee beans.
Robusta is the second most popular coffee, taking up to nearly 40% of the worldwide coffee production. Robusta originated from Africa but most of them are grown in Vietnam. According to world coffee statistics in 2021, Robusta makes up more than 90% of Vietnam’s coffee and equals to about 40% of global Robusta production. When it comes to taste, Robusta is much different from Arabica. With the higher level of caffeine and lower sugar content, Robusta has a bitter, harsher and grain-like flavor compared to Arabica. The price of Robusta has experienced a remarkably upward trend in the last 3 years from 159.6 USD/MT on average in 2018/19 to 241.2 USD/MT in 2020/21. The significant increase is due to not only the boosted demand for making instant coffee-beverage such as Nestle but also the rise in logistics freight affected by the pandemic restrictions. The main Robusta importing countries are Botswana, India, Nigeria, … which prefer the lower price of coffee and do not focus much on the quality of coffee beans.
Liberica may be a coffee that less people know since its annual production is really small, which only makes up about 2% of worldwide produced coffee. This coffee came from Liberia but was planted most in the Philippines. Its taste is similar to Robusta but a bit stronger with a smoky aroma. Due to its unpopularity and low production, there are limited Liberica coffee suppliers around the world. For that reason, it is not easy for coffee drinkers to buy and give it a try.
To conclude, developed countries such as the European Union, the US, … prioritize the quality and nutrient of coffee while African countries or India pay more attention to the price of coffee with the good quality.
Locations of top wholesale coffee suppliers in the world
Most well-known worldwide coffee suppliers are the direct ones who come from producing countries due to their good source such as natural condition, ideal terrains, …
It is almost impossible to discuss Brazil without discussing coffee.
- Brazil is in the top 15 of most coffee consumed countries in the world– in bulk tonnage. However it has won the first position in worldwide coffee production in the last few years. In which, the production of Arabica has ranked first in the global, accounting for about 45% of the global Arabica production on average in the last five years. Meanwhile, Brazilian Robusta output takes the second position, only behind Vietnam, making up to 27% of the total Robusta production in the world.
- Total area used for growing coffee is projected stable at 2.395 million hectares with an upward trend in average yield from 1.75 MT/hectare in 2018/2019 to approximately 1.9 MT/hectare in 2020/2021.
- Robusta and Arabica are 2 main types of coffee that it produces. In which, the Arabica variety, one of the first coffee species ever cultivated, and normally associated with finer, more aromatic coffees, represented nearly 70 percent of the Brazilian coffee output in 2019.
- The leading importing markets of Brazilian coffee suppliers are the US and the European Union with the volume of up to 450MT and 867MT in 2020 respectively.
Vietnam is well-known as an agricultural country with a wide range of products such as rice, coffee, spices, …. In the last 3 years, the average value of coffee exports is around 3.4 billion USD per year, accounting for over 10% of the country’s total agricultural exports.
- The two main types of coffee (Robusta and Arabica) are produced in the country but Robusta accounts for more than 95% of the nation’s total production. However, the export value of Robusta is insignificant since most of this coffee is exported in the form of green coffee beans. Although the roasted and ground coffee exports volume of Vietnam ranks third in the world, its proportion. Therefore, Vietnam coffee suppliers are intended to invest more into training and supporting farming households in the mountainous area, enhancing the technology production and expanding the Arabica planting area to boost the Vietnam coffee export value.
Unit: Metric tonne (MT)
- Total areas covered by coffee farming are estimated at 600,000ha, with the main coffee provinces situated in the Central Highlands. Other smaller producing areas are situated in the North-Western mountain and South Eastern regions. Vietnam coffee has an average yield of exceeding 2.4 metric tonnes per hectare, one of the highest in the world.
- Products from Vietnam coffee suppliers often have a sour and bitter taste but a nutty, caramel and chocolate-like aroma. Vietnam’s main coffee import countries are Italy, Japan, Germany, Indonesia, Russian Federation, Spain and the USA.
In the last few years, Colombia has been in the top 3 of the most coffee produced countries in the world.
- The unique characteristic of Colombia coffee suppliers is that Arabica is the only coffee product they can produce. Despite an enormous planting area up to 800,000 hectares, the Colombia region harvested makes up only 80% of the total planting area due to the sometimes occurrence of La Nĩna phenomena which has a big impact on coffee yield.
- The Arabica production volume of Colombia takes the second position in the world rank, only behind Brazil. It is renowned for its quality, mild, well-balanced flavor coffee and is expected to produce 828 MT of coffee in 2018/19. This production has gone up slightly in 2019 and 2020/21 to 858 MT due to the less abnormal natural conditions and higher investment in technology of this nation.
- In the last few years, American has continued to be the main destination for Colombia coffee suppliers with an upward trend in importing volume from 306 MT in 2018 to 315 MT in 2020 which makes up about 38% of the nation’s coffee exports, followed by China with the average volume of 36% of the total Colombia coffee exports in the same period.
In general, producing countries above are the main coffee suppliers for the worldwide coffee market thanks to their ideal natural conditions, geographical location lying right on the “coffee belt” road and long history of coffee cultivation. Moreover, government authorities in these countries have supported coffee production by reducing the export duties, opening planting training courses for coffee households, ….
What affects the coffee wholesale price of coffee suppliers in the world
There are many factors affecting the production of coffee, thereby making its price from international coffee suppliers change accordingly.
Supply from coffee plantations
For the past two years, Covid-19 has made global coffee suppliers unable to work constantly and thereby interrupting the total amount of Arabica and Robusta coffee exports.
- Not only natural disasters such as the droughts or La Nĩna phenomena in Colombia but also the threat of pandemic can lower global coffee suppliers’ output.
- However, although Vietnam coffee production was affected by droughts and floods, Brazil gained a high yield crop which makes the total coffee production not change much in the last 3 years fluctuating between 1002 MT and 1050 MT per year.
Lower output and stable demand result in the rising coffee prices of coffee suppliers.
Higher or lower demand
During the lockdown in the Covid 19 pandemic, the demand for instant coffee at home has risen dramatically and this year, vaccination rates are higher leading to trade borders being gradually opened worldwide, making the coffee industry recovering. However, since most coffee suppliers have just started to reproduce with lower output compared to higher demand, which means that customers have to bear higher coffee prices than usual. According to CFE (Coffee trading economics), the average coffee prices from coffee suppliers in 2021 is nearly 2 times higher than that in 2019 with the former is up to 4860 USD/ MT
The outbreak of Covid 19 pandemic negatively affected the global supply chain and logistic freight as well. The transportation disruption or lack of custom employees are some of the problems that coffee suppliers have to face, pushing the logistic freight to double or even triple that before Covid-19. Therefore, suppliers have to charge extra transportation fees, making the coffee prices also increase.
How to identify reliable and scam coffee suppliers
Now there are so many coffee suppliers around the world. However, some of them are scammers who want to cheat naive buyers, especially the newbies in the coffee market. Therefore, buyers should keep a clear mind when finding partners with the highly recommended tips.
Signs of reliable coffee suppliers
Coffee market is now an active and dynamic trading one so there are many coffee suppliers joining to make profits from it. However, it is not easy to find reliable suppliers and buyers should take note of some useful finding tips as follows.
- A reputable coffee supplier is a certified business: As one of the leading agricultural products exporting to other countries, coffee is often heavily regulated. For this reason, reliable coffee suppliers must be approved by authorities of many fields such as the authorities of agriculture, authorities of trading or health and food. A permitted wholesale coffee supplier has to meet requirements from these agencies to be able to trade coffee in the market.
- The best coffee supplier is often close with the farmers: High quality coffee comes from good farms. The modern way in agriculture business is to shorten the supply chain, processor and wholesale rice supplier collaborate closely with farmers and farming cooperatives, to ensure the stable input and quality. A good processor or wholesaler is often very proud of their cultivation area and publicizes their information on their website or profile. Many best wholesale coffee suppliers have their own farming area and can provide farm-to-port service. This allows suppliers to provide a stable input with the best wholesale price for importers and income for farmers.
- International or domestic certificates are the good sign of a trustworthy coffee supplier: Coffee is the third most consumed drink in the globe, so there are many standards to regulate and ensure the safety and quality of this product. A trustworthy coffee supplier must meet national standards of food safety, at least. Moreover, an export-oriented coffee supplier also needs to prove that they can meet requirements of importers. There are USDA standards for the United States, JAS for the Japanese market or EU for countries of the European Union. There are other standards that are generally recognized by most of the countries, such as HACCP, ISO or Global GAP, …. Coffee suppliers with many certificates can build trust in both customers and consumers since these prove that they are supplying high quality products and care to the environment and people.
Signs of scammers or unreliable coffee suppliers
Since the coffee market now is dynamic and potential, there are a lot of scammers who want to make profits by making use of and treating importers, especially the newbies.
- The wholesale price is too low: Coffee is an agricultural product whose price fluctuates based on harvesting seasons. Therefore, the market price has to be checked from the coffee association of each country. A wholesale coffee supplier offering the price which is 30-40% lower than that of the average market price should not be reliable.
- Lack of clearance: Being reluctant to provide testing samples and some basic information or certificates of their company is a clear sign of unreliable coffee suppliers. Besides, a lack of transparency on documents and purchasing contracts of basic information such as: term of delivery, specification of the product, term of payment, …
- Always push for early payment or large deposits: Scammers always require early payment which is not aligned with the contract or excessive deposits than usual. This is a crucial sign buyers should take note to avoid unreliable coffee suppliers.
How to work with reputable coffee suppliers effectively
After finding out several suitable Arabica coffee suppliers, buyers should take note of the following 6 useful steps to better the purchasing process.
- Send Letter of Intent (LOI)
Buyers will send to potential Arabica coffee suppliers a Letter of Intent containing basic information about their companies and demands for the goods.
- Formalize the FCO
If the Arabica coffee suppliers can meet the buyer’s LOI, they will send the Full Corporate Offer (FCO) to the buyers.
- Test sample
Buyers should require coffee samples to get clearly about the product and more trust in the suppliers. If possible, buyers can directly visit the Arabica coffee supplier’s factory and manufacturing line.
- Negotiate and sign contract
Signing a contract is a binding commitment under the law of both parties.
- Prepare goods
Keeping track of preparing and shipping goods is the main task that both parties need to follow to ensure the order process happens smoothly.
- Receive goods, complete payment and feedback
After receiving the arrival note, importers are preparing to receive goods, complete the rest of payment and then give feedback of the products to the suppliers. If the products satisfy the buyers’ requirements, both parties can consider the next orders.
Top 4 reputable coffee suppliers to be considered Bổ sung thành top 5 nhé
Here are the top 4 coffee suppliers in the globe suggested by most international coffee importers.
Goldenbean is a famous coffee supplier in Brazil
Goldenbean is a popular coffee brand for Brazilians who love sharing their passion for great coffee. The company focuses on providing selected coffee specialties for classy coffee drinkers. They provide a wide range of products from instant coffee to specialty coffee, which is targeted for mostly classy customers because of the high price of coffee products.
Whatsapp: +84855 555 837
K- Agriculture Factory is one of the leading wholesale coffee suppliers in Vietnam
K-Agriculture Factory was established in 1996, under the insurance of the Ministry of Industry and Trade of Vietnam. With 25 years of experience in producing and promoting high-quality Vietnamese agricultural products to the global market, K-Agriculture is regarded as a must-chosen coffee supplier for any foreign traders.
Its system of coffee processing factories is spread across Vietnam such as Lam Dong, Da Lat, Quang Tri, etc. with a huge warehouse capacity up to more than 21,000 tons. K-Agriculture now provides a wide range of coffee products from Arabica and Robusta green coffee to processed high-class coffee in bulk to large markets such as Italy, Russia, the US, Germany, etc.
For further information about the products and the best wholesale price, feel free to contact us:
Whatsapp: +84855 555 837
Trung Nguyen Legend is a reputable coffee suppliers
Trung Nguyen is known as a famous Vietnam coffee beans exporter. The company provides a wide selection of products from commercial coffee beans to specialty ones, from green coffee beans to instant coffee. In which, instant coffee is the most outstanding product. Their products are available in over 60 countries around the world such as the EU, US, Germany, ….
Whatsapp: +84855 555 837
Lina Premium Coffee a reliable coffee supplier in Colombia
Lina Premium Coffee was established in 2000, focusing on manufacturing high-quality coffee beans made from Arabica. Their products are diverse including many Arabica varieties such as Gesha, Catiope, Sudan Rume, … and many types of processes as well from natural to semi-washed, washed and cold processes. Their target market is classy customers since their products are high-end quality with the high price and their services to satisfy all customers’ requirements.
Whatsapp: +84855 555 837