Green Coffee Bean: Everything You Need To Know Before Importing & Exporting

Vietnamese Coffee Exporter
green-coffee-bean-everything-you-need-to-know-before-importing-exporting

Green Coffee Bean: Although several different coffee species exist, two main coffee types are grown today. Coffea arabica, known as Arabica coffee, accounts for 75-80% of world production. Coffea coffee, known as Robusta coffee, accounts for about 20% and differs from Arabica coffee in taste. While Robusta beans are stronger than Arabica plants, they produce a lower-tasting beverage with higher caffeine content. Both robusta and arabica coffee plants can grow to 10 meters without pruning. Still, producing countries will maintain the coffee plants at a reasonable height for easy harvesting.

 

1. Product Overview of Green Coffee Bean during Importing and Exporting Process

Two types of Green Coffee beans are commonly grown:

  1. Coffea Arabica coffee;
  2. Robusta Coffee – Coffea canephora.
No. Difference Robusta Arabica
1. Taste Robusta with 2.7% caffeine (burnt tires or more rubber) Arabica bean has 1.5% caffeine
2. Fat and sugar content Robusta has half Arabica Arabica contains almost 60%
3. Shape Robusta vegetables are more than round.

Robusta usually grows from 4.5 to 6 meters.

Arabica is more oval. Arabica usually grows from 2.5 to 4.5 m.
4. Chlorogenic acid (CGA) content (It’s a significant antioxidant and an insect repellent Robusta is 7-10% CGA. Arabica has 5.5% CGA.

 

Product Overview – HS and NTL. codes

  • HS code for coffee is 090111
  • The NTL codes of the relevant exporting countries are as follows:
  • Germany -Example: 0901110000
  • Brazil – Example: 09011110
  • United States – Example: 09011100
  • Colombia – Example: 0901111000
  • Indonesia – Example: 0901111000
  • Peru- Example: 0901111000

2. Global Trade Overview Of Green Coffee Bean

  • Total trade, major exporting countries, major importing countries

Features of the trade:

  • Concentration
  • Average unit value
  • evolution

Global Trade Overview

  • Total trade, major exporting countries, major importing countries
  • In 2015, global coffee exports reached US$19,800,994,000, with major importers being Brazil, Colombia, Vietnam, Indonesia and Ethiopia.
  • Total global imports for the same year were US$20,474,942,000, with the US, Germany, Italy, Japan and Belgium being the main exporters.

3. Global Trade Overview – Import Map

Global Trade Overview – Top 10 Importers

 

 

Importers

Trade Indicators
 

Import value in 2015 (thousand USD)

World 20474942
America 4827285
Virtue 2766755
IDEA 1546255
Japan 1476705
Belgium 845355
France 834370
Spain 654580
Sailors 633715
Canada 624739
Older brother 537828

 

The three leading importers accounted for 44.64% of the world’s total imports in 2015; thus, the product is not concentrated.

Global Trade Overview – Top 10 Exporters

Export The export value in 2015 (thousand USD)
World 19800994
Brazil 5555374
Colombia 2526532
Vietnam 2417284
Indonesia 1189550
Ethiopia 1017109
Honduras 931667
Guatemala 663547
Belgium 602396
Peru 579586
Virtue 538421
India 535435

Total export value in the top ten is 16,506,901,000 USD. The proportion of the 3 main exporters is 10,499,190,000 USD, accounting for 53.02%. This means exports are not centralized.

Characteristics of Trade

World coffee imports are decreasing. Amount transferred from US$27,500.822,000 in 2011 to $20,474,944,000 in 2015

  • .About 218 countries import coffee, including 177 exporters.

o No product concentration for both imports and exports

  • The average export value of the world is 2893 USD.
  • However, unit values ​​vary considerably from country to country. This may be due to product quality requirements from different countries.

o The annual growth rate is 6%, and the volume is 2% (2011-2015).

o Annual growth rate is -3% (2014-2015).

Vietnam’s export performance for the selected product

  • Ranked in world exports
  • Major importers of Vietnamese products
  • Gain or lose market share in the world market?

Export of Vietnam’s export coffee

 

Import

The export value in 2015 (thousand USD)
Total
Virtue 432861
America 329554
IDEA 238856
Spain 221719
Japan 155750
Belgium 110248
that 104909
France 104354
Ba Lan 91483
India 56550
Korea 54485

 

The leading importers of Vietnamese coffee are shown on the table on the right;

  1. Tax rates for Vietnam in the world
  2. Market test
  • Prepare a summary of your analysis and selected critical indicators based on your results.
 

 

Target country

Import Value in 2015 (thousands of dollars)  

Unit Value (USD/unit)

 

World Market Share (%)

Annual growth rate

In terms of value

2015 (%)

 

Tariff advantages

 

A

America 4,827,285 3,556 23.57 -1 0
B Germany 2,766,755 2,680 13.51 -14 0
C Italia 1,546,255 2,929 7.55 7 0
D Japan 1,476,705 3,409 7.21 11 0
E Belgium 845,355 3,067 4.12 7 0
F France 834,370 2,857 4.07 21 0

Market test of Green Coffee Beans

Compare tax rates applicable to markets attractive to Vietnam and critical competitors in NTL

 

 

 

Target market

 

Ranking in the target market for tax rates facing Vietnam, AVE Rating (%)

 

 

Competitive market

(market share in 2015)

 

Tax rates of competitive markets

AVE (%)

 

 

Tariff advantage

America 3rd place 6.82%

Tax rate: 0%

Colombia (24.24 %) 0 =
 

Indonesia (6.69 %)

 

0

=
Germany Rated 2

 

Vietnam’s market share in the German import market

15.64 %

 

Tax for Vietnam: 0

%

Brazil (35.01 %) 0 =
Colombia(7.2 %) 0 =
 

 

Peru (6.28 %)

 

 

0

 

=

Italia Rank 2 accounted for 15.44%. Tax rate: 0% Indonesia (5.55%) 0 =
Colombia (5.22%) 0 =
 

India (10.92%)

 

0

=

   Select a target market

  • Market selection: Japan

Reason:

  • The fourth largest coffee importer in the world
  • The export tax rate for Vietnam is 0%
  • Relatively close to Vietnam in terms of geographical distance
  • Being a potential trade partner of Vietnam

 

 

 

 

PLU

 

 

 

 

Label

Vietnam exports to Japan Japan imported from the world VN exports to the world Potential (thousand USD)
 

 

Value of thousands of USD in 2015

Annual growth 2011-

2015, %,

p.a.

 

 

The proportion of Vietnam’s export market share

Applicable Tariffs  

Value of thousands of USD in 2015

Annual growth 2011-

2015, %,

p.a.

 

The proportion of import market share s, %

 

 

Value of thousands of USD in 2015

Annual growth 2011-

2015, %,

p.a.

 

Export share %

 

 

‘090111

Coffee (excluding roasted and decaffeinated)) 155750 3 6.4 0 1476705 -7 7.2 2417284 -4 12.2 13209

55

Target Market – Characteristics

D.1 Background

When available: use trade data at the country tariff level in the Trade Map

  • Vietnam’s commercial activities in the target market Vietnam exported 2,417,284,000 USD in 2015
  • Valuation of Vietnam using unit value
  • World average coffee imports from Vietnam with a unit value of $2,174/ton
D.2 Tax rates for tariff items and target markets

Compare tax rates applicable to targeting Vietnam and significant competitors in NTL to determine tax advantages

Vietnam’s competitive market

Proportion Tax rates of competitors Commercial mode Tariff advantage for Vietnam (Yes or No)
1 Brazil 28.05% 0 No
2 Colombia 12.76 % 0 No
3 Indonesia 6 % 0 No
4 Ethiopia 5.14 % 0 No
5 Honduras 4.7 % 0

No

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