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Wholesale coffee bean distributors – Market Analysis & Buying tips

Wholesale coffee bean distributors may currently be found all over the world. By raising, optimizing, and linking producers and wholesale purchasers, they make a significant contribution to the wholesale coffee bean business.

Related: Top 3 reputable wholesale coffee distributors

Wholesale coffee bean distributors overview

In the global coffee trade sector, wholesale coffee bean distributors are well-known and diversified.

Wholesale coffee bean distributors definition

Wholesale coffee bean distributors are regarded as middlemen that distribute green coffee beans from farmers to people or businesses looking to buy in bulk through their distribution methods.

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Wholesale coffee bean distributors definition

Wholesale coffee bean distributors – producers – exporters distinguish

  • Wholesale coffee bean distributors function as middlemen between coffee farmers and domestic as well as international buyers.
  • Coffee producers are those who cultivate, harvest, process, pack, and store green coffee beans. If coffee producers have the financial wherewithal to develop their own facilities and sell large amounts of coffee, they can also be manufacturers in some situations.
  • Exporters are coffee suppliers that market their products on a global scale.
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Wholesale coffee bean distributors – producers – exporters distinguish

Wholesale coffee bean distributors function

Wholesale coffee bean distributors have some of the same responsibilities as wholesale coffee suppliers, but their work is far more sophisticated and dynamic.

  • Distribution: Wholesale coffee bean distributors’ major job is to get green coffee to those who need it at the right time, in the right place, and with the correct needed items. Coffee distributors must understand the industry and, in the future, catch up with changing trends in order to distribute products at the proper time, location, and product needs.
  • Providing market intelligence: Because wholesale coffee bean distributors have such a wide supply and demand network, they can typically comprehend supply and demand information rapidly and are particularly informed about domestic and international coffee markets. In addition, coffee beans distributors can then give purchasers the most accurate information on the coffee market, which is especially important for new customers and which domestic suppliers may not be able to provide.
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Wholesale coffee bean distributors function

The settings of wholesale coffee bean distributors market

In MY 2020/21, the wholesale coffee bean market faced two challenges: the price of coffee had not yet recovered from a four-year slump, and the COVID-19 pandemic had paralyzed several countries, resulting in low coffee consumption.

Wholesale coffee bean distributors location

Coffee bean distributors are mainly located in or close to The Bean Belt, which is an excellent place for coffee production. The area between 25°N and 30°S is referred to in this term. Coffee thrives in warmer climates, thus areas that are too far north or south of the equator will not be viable for growing coffee. Africa, Asia, South America, and North America, with the exception of Canada, are the most prevalent destinations for coffee exports and imports.

  • Wholesale coffee bean distributors
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Coffee production per country in 2020 (in MT)

Brazil exports over 2.5 million MT of green coffee beans each year. São Paulo, Paraná, and Minas Gerais are the top three coffee-growing cities in Brazil, all of which are located in the country’s southeastern area. Over the previous 150 years, Brazil has produced the most coffee of any country that exports coffee, accounting for one-third of worldwide production.

Vietnam is the world’s second-largest exporter of green coffee beans, with 0.9 million tons exported annually.

Colombia has been a commercial coffee producer since 1830, selling to Japan, the United States, Italy, Germany, and France, and is presently rated third among coffee export countries in terms of volume.

  • Reasons for coffee’s widespread dissemination in these countries

These nations have the yearly coffee output that is in the top quantity in the world, ensuring a steady and plentiful supply for wholesale coffee bean distributors. The key causes for these nations’ large coffee production are favorable natural circumstances, long-term expertise, and a skilled labor force.

Another factor is the affordable delivery cost. Brazil and Colombia, both located on the same continent, are aiming for the “big consumer” of coffee, the United States, while other countries in Europe, such as Germany, and Asia, such as Japan and Thailand, are interested in Vietnam, which has a consistent supply of coffee at a 5 percent lower price than the market.

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Reasons for coffee’s widespread dissemination in these countries

Coffee value

The value of green Robusta coffee in Vietnam dropped consecutively and significantly while the value of Arabica coffee in Brazil, Colombia, and Indonesia fluctuated with strong amplitude.

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Green coffee anual value per country (in MT)

To explain this trend, the main reasons are:

  • The coffee price trend decreased from the end of MY 2016/17 to MY 2019/20 due to overproduction in Brazil and a sharp drop of the Brazilian Real against the US dollar.
  • Wholesale coffee bean prices began to fall at the beginning of MY 2019/20 as the Covid-19 epidemic began in China and expanded around the world, reducing the demand for coffee to supply restaurants and cafes as well as the coffee value.
  • As a consequence of the Covid-19 pandemic, consumers are drinking coffee at home, shifting demand from Arabica to Robusta, the type of coffee used in instant coffee blends.

Factors affecting wholesale coffee bean distributors supply

Wholesale coffee bean distributors are easily affected because even little changes in supply, demand, transportation rates, government laws, or other external variables can have a significant impact on their coffee trading process.

  • Supply

Coffee bean output worldwide in MY 2020/21 declined dramatically due to frost in Brazil and drought in Vietnam and is expected to continue to decline in the next MY. This is also the primary cause of the fluctuation in coffee prices. Wholesale coffee bean distributors must work diligently to secure long-term sources for future pre-orders.

  • Demand

Coffee demand, on the other hand, is growing as a result of the reopening of coffee shops following the Covid-19 pandemic and the immunization drive in Europe and the United States. After two years of battling the Covid-19 pandemic, this is a great chance for wholesale coffee bean distributors.

  • Logistics

Port operations were curtailed or halted as a result of the Covid-19 outbreak, and logistical prices skyrocketed. Shipping costs have climbed 3-7 times higher than typical, making it difficult for many wholesale coffee bean distributors to determine whether to raise product prices, cancel orders, or lose money in order to maintain business partnerships.

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Factors affecting wholesale coffee bean distributors supply

Ways to approach wholesale coffee bean distributors

Finding reliable wholesale coffee bean distributors is critical since it determines whether or not a company will survive.

Searching trustworthy wholesale coffee bean distributors

  • Internet assistance: Finding information is now easier than ever before thanks to the Internet. Buyers may identify respectable coffee distributors by searching on search engines or looking up their names on large e-commerce platforms like Alibaba, and EC21, or social media sites like Facebook and LinkedIn.
  • Broker services: If buyers are new wholesale customers, buyers can use an intermediary service. These are market-savvy intermediates with a dependable and consistent supply. However, because buyers must pay the intermediate firm, the price will be slightly higher.
  • International trade fairs: For long-term purchasers, international trade fairs are a great way to meet and interact with wholesale coffee bean distributors. The world agricultural exposition, however, was unable to take place because of the impact of the Covid-19 pandemic.
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Searching trustworthy wholesale coffee bean distributors

Tips to evaluate reliable wholesale coffee bean distributors

The following are qualities of prestigious wholesale distributors:

  • Transparency in profiles: Reputable wholesale coffee bean distributors will be worried about their public image. As a result, they always invest in a transparent image, from the company’s location, phone number, email address with the company’s own domain, business registration, and photographs on digital platforms like Facebook, Youtube, and their website.
  • Coffee certifications: Coffee is a prominent agricultural export item in many nations, hence certifications are required. However, the corporation must obtain certificates of origin, phytosanitary certifications, or an export license for this product to establish its quality.
  • Business activities: Reputable distributors will work with a diverse range of partners and clients. Buyers of wholesale coffee can use their testimonials to gauge the quality of the products and services provided by wholesale coffee bean distributors.
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Tips to evaluate reliable wholesale coffee bean distributors

Tips to avoid scam wholesale coffee bean distributors

Untrustworthy wholesale coffee distributors behave extremely sensitively in today’s difficult business industry. Here are several indicators that buyers are dealing with a scam wholesaler:

  • Low price offer: Coffee prices throughout the world fluctuate hourly in US and European markets. Wholesale coffee bean distributors can provide competitive discounts, but if the distributor’s pricing is excessively cheap in comparison to the market, the supplier may be attempting to deceive buyers or supply low-quantity items.
  • Unclear profile: Unreliable distributors frequently try to conceal their genuine identity by failing to pay attention or provide the company’s information on the Internet. Untrustworthy wholesalers use a firm name and website that closely resembles a legitimate company, or they may use photographs from the Internet that are easily verifiable.
  • Meeting refusal: Unreliable wholesale coffee bean distributors sometimes refuse to meet for face-to-face discussions. In fact, people cannot meet face to face during the Covid-19 outbreak, but with the advancement of technological gadgets, meetings via WhatsApp, Zoom, or Google Meet are quite doable.
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Tips to avoid scam wholesale coffee bean distributors

Tips to work with wholesale coffee bean distributors

Purchasers must first understand the five key phases in the agricultural product importation process in order to work effectively with wholesale coffee distributors.

Step 1: Buyers submit a Letter of Intent (LOI) to distributors stating their needs, including quantity, quality, and cost.

Step 2: Coffee distributors will react with an FCO based on the customers’ LOI. After that, the parties sides will negotiate to obtain a final FCO agreement.

Step 3: Once a basic agreement has been established, suppliers will offer consumers samples so that they may assess the quality of their goods.

Step 4: Based on the criteria mentioned, the two parties will sign and execute the contract. Buyers are nearly usually obliged to pay a deposit to the seller after signing the contract.

Step 5: Wholesale coffee bean distributors must follow the Incoterms of the contract and have 2-4 weeks to deliver the items. Once the items have been put aboard the ship, distributors must send the Bill of Lading to the purchasers. The delivery period might range from 7 to 40 days, depending on the mode of transit.

Step 6: After receiving the commodities, customers must examine them for quality and quantity before providing feedback to the distributors as soon as possible.

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Tips to work with wholesale coffee bean distributors

Prestigious wholesale coffee bean distributors

The following are the top three prominent coffee bean distributors in the world, as selected by numerous coffee enthusiasts.

Wholesale coffee bean distributors – Kaldi Coffee (The United States)

Kaldi is not only a site where customers can get the best and freshest coffee bean but it is also one of the world’s most prominent coffee education centers. Furthermore, Kaldi is always eager to assist its clients at all phases of the process, from packaging to payment to delivery.

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Wholesale coffee bean distributors – Kaldi Coffee (The United States)

Contact information

WhatsApp: +84 855555837

Wholesale coffee bean distributors – K-Agriculture (Vietnam)

K-Agriculture supplies the market with all types of green Robusta, Arabica, and Specialty coffee. All of its coffee beans are hand-picked, maintained, and packed under the highest standards.

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Wholesale coffee bean distributors – K-Agriculture (Vietnam)

Contact information

Email: info@k-agriculture.com

Website: https://k-agriculture.com/

WhatsApp: +84 855555837

Wholesale coffee bean distributors – Java Bean Plus (The United States)

In terms of supplying high-quality wholesale coffee at affordable pricing, Java Bean Plus is one of the world’s largest coffee bean distributors. Java Bean Plus has served over 2,000 clients across the United States with an emphasis on customer satisfaction.

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Wholesale coffee bean distributors – Java Bean Plus (The United States)

Contact information

WhatsApp: +84 855555837

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