coffee plantation business plan pdf

How to Start Commercial Coffee Plantation Business

Do you want to start a coffee production business? Find here a detailed coffee plantation business plan guide for beginners. The article contains economic importance, best varieties, cost, and commercial farming guide.

The scientific name of the coffee is Coffea and it belongs to Rubiaceae. Basically, it is a flowering plant. And it produces coffee beans. Basically, coffee plants are shrubs or small trees. Coffee has the great market potential both in domestic and international trade. Green (unroasted) coffee is one of the most traded agricultural commodities in the world.

Is Coffee Plantation Business Profitable?

Basically, over 90% of coffee production takes place in developing countries. However, maximum consumption happens mainly in industrialized economies. Coffee is one of the major agricultural export commodities throughout the globe. The coffee industry currently has a commodity chain that involves producers, middlemen exporters, importers, roasters, and retailers before reaching the consumer.

Health Benefits of Coffee

Things to consider in commercial coffee plantation, best varieties for coffee plantation.

Coffee Arabica: It is one of the predominant varieties grown in the coffee belts of the world. It prefers a cool climate and high altitude.  It is susceptible to the leaf disease Hemeleta Vastatrix. Some of the important strains of C. arabica are :

a) Kent Coffee: It is vigorous and moderately resistant to leaf disease and” gives good yields with bold good-sized berries.

d) Cofflmliitemm: In this variety, the tree comes in moderate size and grows to a maximum height of 8 meters. They are borne on the leaf axils & on branches in single and also in clusters.

g) Coffee Cugencil: Bush is very small with, very small leaves and berries.

Location & Agroclimatic Condition for Coffee Plantation

The coffee plant prefers deep, friable well-drained, slightly acidic in reaction (PH 6.0-6.5) porous, and rich in organic matter content. Soil should be moisture retentive.

10 Basic Steps for Coffee Plantation

1. land preparation.

Then, pack the soil around the seedling firmly and evenly in such a way that 3 cm high above the ground to prevent stagnation of water around the collar. Finally, provide the seedlings cross stakes to prevent wind damage.

2. Nursery Practice

For sowing the coffee seeds, prepare the germination beds of 1-meter width and of convenient length to a height of 15 cm from the ground level. Sow only the selected and certified coffee seeds. After sowing, cover the seeds with a thin layer of finely sieved soil. Additionally, mulch with a layer of paddy straw ensures optimum temperature for seed germination and protects the seeds from desiccation.

3. Coffee Care & Management

4. soil management.

Scuffling or soil stirring: In established coffee fields, you can do scuffling or soil stirring towards the beginning of the dry period. Actually, it controls weeds and also conserves soil moisture.

Mulching: Basically, mulching young coffee clearings helps to maintain optimum soil temperature and conserves soil moisture, and acts as an effective erosion control measure.

Read:   Is Soil Testing Important In Agriculture?

5. Manuring

6. irrigation, 7. weed control.

Generally, during monsoon, you will need to put attention to weed control

8. Shade Tree Management

9. plant protection.

For protecting the plant, you must save the coffee garden from pests and diseases. Generally, Mealybug, White stem borer, and Shoot-hole borer are the most potential pests to damage the coffee plantation.

10. Harvesting & Storage

Actually, you can pick the coffee fruits as and when they become ripe to get better quality. Arabica comes for harvesting earlier since they take 8-9 months for fruit development from flowering while robusta takes 10-11 months.

Editorial Team at 99BusinessIdeas is a team of experts led by Rupak Chakrabarty with over 25 years of experience in starting and running small businesses. Started in 2010, 99BusinessIdeas is now one of the largest free small business resources in the industry.

Coffee Plantation Business Idea Description in 5 W’s and 1 H Format

By alex ryzhkov, resources on coffee plantation.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

Are you a coffee lover looking to dive into the world of business? If so, prepare to be captivated by the possibilities of the coffee plantation business. In this article, we will unpack the 'who, what, where, when, why, and how' of this lucrative venture. Delve into the story of Kona's Finest Coffee Plantation, a US-based startup specializing in high-quality and specialty coffee beans. Situated in the picturesque region of Kailua-Kona, Hawaii – known for its ideal coffee-growing conditions – this company places sustainability and fair trade at the heart of its operations. Discover how Kona's Finest aims to make its coffee beans available worldwide through strong relationships with distributors and retailers. To build brand awareness and reputation, they engage customers through captivating tours and tastings. Stay tuned, as we unveil the latest statistical data and market size of the coffee plantation industry in the US, presenting you with an enticing opportunity to merge your passion for coffee with a profitable business endeavor.

Key Takeaways

• Kona's Finest Coffee Plantation is a US-based startup specializing in high-quality and specialty coffee beans.
• The company is located in Kailua-Kona, Hawaii, a prime coffee-growing region.
• Kona's Finest prioritizes sustainability and fair trade practices.
• The company aims to establish strong relationships with distributors and retailers to make their coffee beans available worldwide.
• Kona's Finest engages customers through tours and tastings to build brand awareness and reputation.

Kona's Finest Coffee Plantation is led by a team of experienced coffee enthusiasts and business professionals who are committed to providing the highest quality coffee beans. The major players in our company include the owners, personnel, and advisors who bring their expertise to ensure the success of the business.

The owners of Kona's Finest Coffee Plantation are dedicated individuals with a deep passion for coffee. They have extensive knowledge and experience in the coffee industry, including farming, processing, and marketing. Their expertise enables them to oversee and manage all aspects of the coffee plantation, from cultivation to distribution.

The personnel of Kona's Finest Coffee Plantation consist of skilled farmers, harvesters, processors, and roasters who work diligently to produce the finest coffee beans. They ensure that sustainable and socially conscious practices are implemented throughout the production process. Our team is committed to maintaining the highest standards of quality.

Advisors play a crucial role in guiding the strategic direction of Kona's Finest Coffee Plantation. These advisors have extensive experience in the coffee industry and provide valuable insights and advice to help the company grow and succeed. They offer expertise in areas such as sustainability, fair trade practices, and market trends.

Our ideal clients are coffee enthusiasts who appreciate the highest quality coffee beans. They value sustainable and socially conscious practices and are willing to invest in premium coffee products. Our target audience includes both individual consumers and businesses, such as specialty coffee shops and restaurants, who prioritize offering exceptional coffee to their customers.

It is essential for us to understand our target consumer to tailor our marketing strategies and product offerings to meet their preferences and needs. By identifying and targeting our ideal clients, we can effectively communicate the value of our specialty coffee beans, building loyal customers and expanding our market reach.

• Major Players: Owners, personnel, advisors
• Owners: Passionate individuals with expertise in the coffee industry
• Personnel: Skilled farmers, harvesters, processors, and roasters
• Advisors: Experienced professionals providing strategic guidance
• Ideal Client: Coffee enthusiasts who value sustainability and quality
• Target Audience: Individual consumers and businesses in the coffee industry

Kona's Finest Coffee Plantation is a US-based startup located in Kailua-Kona, Hawaii, specializing in producing high-quality and specialty coffee beans. Our goal is to provide coffee enthusiasts worldwide with the finest and most sustainable coffee beans available on the market. We aim to establish ourselves as a leading producer and supplier of specialty coffee.

Sustainable Advantage

Our sustainable advantage lies in our commitment to sustainability and fair trade practices. Unlike many other coffee plantations, we prioritize environmentally friendly cultivation methods and ensure that our farmers receive fair compensation for their hard work. By embracing sustainable and socially conscious practices, we not only contribute to a better world but also attract conscious consumers who appreciate ethically sourced products.

What We Offer

At Kona's Finest Coffee Plantation, we offer a wide range of specialty coffee beans. Our beans are meticulously grown and hand-picked in our coffee plantation located in the prime coffee-growing region of Kailua-Kona, Hawaii. Each bean represents our dedication to quality and sustainability.

• We offer a variety of coffee bean types, including Arabica and Robusta, each with its own unique flavor profile.
• Our beans are carefully processed and roasted to bring out their full potential, resulting in rich and aromatic coffee.
• We provide both whole bean and ground coffee options to cater to the preferences of our customers.
• Additionally, we offer customizable packaging options, allowing businesses and individuals to showcase their brand with our premium coffee.

What We Produce

At Kona's Finest Coffee Plantation, we produce the highest quality specialty coffee beans available. Our coffee beans undergo a rigorous production process to ensure their excellence:

• We invest in state-of-the-art equipment and technology to ensure consistent quality and efficient production.
• Our coffee beans are sustainably grown, using organic fertilizers and environmentally friendly farming practices.
• We employ skilled farmers who carefully cultivate, hand-pick, and sort the coffee beans to ensure only the best make it to your cup.
• In our artisan roasting process, we carefully monitor temperature and time to bring out the unique flavors and aromas of each bean.
• Finally, our coffee beans are carefully packaged, preserving their freshness and allowing customers to enjoy a delightful coffee experience.

Business Objectives

Our short-term goal is to penetrate the local market in Kailua-Kona, Hawaii, and establish a strong presence in the coffee industry. We aim to achieve sales of $100,000 worth of our specialty coffee beans by the end of the second month.

In the long term, we aspire to expand our distribution network and become a recognized brand globally. We aim to partner with distributors and retailers to make our coffee beans readily available to coffee enthusiasts worldwide, reaching sales of $1,000,000 worth of product within the first year.

Kona's Finest Coffee Plantation is located in the beautiful city of Kailua-Kona, Hawaii. Our coffee plantation is situated in the prime coffee-growing region of Kailua-Kona, known for its rich volcanic soil and optimal climate conditions that contribute to the cultivation of high-quality coffee beans.

The target audience for Kona's Finest Coffee Plantation extends beyond the local community of Kailua-Kona. We aim to cater to coffee enthusiasts worldwide who appreciate specialty coffee and are willing to invest in sustainably grown and socially conscious products. By establishing strong relationships with distributors and retailers, we ensure that our coffee beans are readily available to our target audience across different locations.

The location of the coffee plantation in Kailua-Kona offers several advantages for our business. Firstly, it allows us to be directly involved in every step of the coffee production process, from seed to cup. This proximity enables us to maintain strict quality control measures and ensures that only the finest coffee beans make their way to the market.

• Additionally, being located in Kailua-Kona gives us a unique selling point. The region's reputation for producing exceptional coffee beans adds credibility to our brand and attracts coffee connoisseurs from around the world who are eager to try the renowned Kona coffee.
• Furthermore, Kailua-Kona's captivating natural beauty and its reputation as a tourist destination offer an opportunity for our business to engage with visitors through coffee plantation tours and tastings. These experiences not only generate additional revenue but also serve as a means to educate and increase brand awareness.

In terms of new opportunities, Kona's Finest Coffee Plantation aims to expand its reach and establish a global presence. By building strong relationships with distributors and retailers in various regions, we can ensure that our coffee beans reach coffee enthusiasts in different parts of the world. This expansion plan aligns with our commitment to sustainability and fair trade practices, as it allows us to support local economies and provide opportunities for farmers in other coffee-growing regions.

To achieve our goals, we will leverage state-of-the-art equipment and technology to maintain consistent quality and efficient production. Investing in sustainable and fair trade practices will contribute to our brand's environmental and social consciousness. By prioritizing these values and engaging with our target audience through tours and tastings, we aim to establish a strong brand reputation and become a trusted name in the coffee industry.

As a US-based startup, Kona's Finest Coffee Plantation was established in 2023 with a clear timeline in mind for achieving our goals. We have carefully planned our actions and set specific dates for various milestones in our business plan.

Business Start

Kona's Finest Coffee Plantation officially opened its doors in the beautiful city of Kailua-Kona, Hawaii in 2023. With a team of experienced coffee enthusiasts and business professionals, we hit the ground running, excited to bring the highest quality and specialty coffee beans to the market.

Putting the Plan into Action

We wasted no time in putting our business plan into action. Immediately after our establishment in 2023, we began investing in state-of-the-art equipment and technology to ensure efficient production and consistent quality of our coffee beans. This allowed us to start seeing results and meeting the demands of our customers.

Achieving Objectives

Our primary objectives, both short-term and long-term, have specific timelines attached to them. In the short-term, within the first three years of operation, we aim to establish strong relationships with distributors and retailers to ensure our coffee beans are available for coffee enthusiasts worldwide.

In the long-term, by the end of our first decade in operation, we intend to have achieved significant brand recognition and become a leading name in the coffee industry. We aim to expand our distribution network globally and continuously improve our sustainable and fair trade practices.

Retirement and Departure Strategy

Looking towards the future, we expect to retire from Kona's Finest Coffee Plantation in approximately 35 years. By 2058 , we envision passing the reins of our successful company to a new generation of coffee enthusiasts who share our passion for quality, sustainability, and customer satisfaction.

When the time comes to retire, we plan to sell our firm to a suitable buyer who shares our values and commitment to excellence. Alternatively, should the circumstances require it, we may consider closing down the business, making sure that all loose ends are tied up and that our legacy is preserved.

At Kona's Finest Coffee Plantation, our mission is to provide customers with the highest quality and specialty coffee beans, while also prioritizing sustainability and fair trade practices. We believe that customers would want our product for several reasons.

• Exceptional Quality: Our coffee beans are carefully grown and processed to ensure the highest quality and taste. We take great pride in the unique flavors and aromas our beans offer, providing coffee enthusiasts with an exceptional brewing experience.
• Sustainable Practices: We are committed to sustainable farming practices that protect the environment and support the local ecosystem. Our plantation incorporates innovative technologies and techniques to minimize water usage, reduce carbon emissions, and promote biodiversity.
• Social Consciousness: By prioritizing fair trade practices, we ensure that our coffee is sourced ethically and that the farmers receive fair compensation for their hard work. We actively contribute to empowering local communities and improving their livelihoods.

Uniqueness and Differentiation

What sets Kona's Finest Coffee Plantation apart from competitors is our unwavering commitment to quality, sustainability, and customer engagement. We go above and beyond to differentiate ourselves in the following ways:

• Location: Our plantation is situated in the prime coffee-growing region of Kailua-Kona, Hawaii. The unique volcanic soil and ideal climate contribute to the exceptional flavors and qualities of our coffee beans.
• State-of-the-Art Technology: We invest in cutting-edge equipment and technology to ensure consistent quality and efficient production. By leveraging innovative processing methods, we are able to enhance the flavors and retain the distinct characteristics of our beans.
• Customer Engagement: We believe in building a strong bond with our customers. We offer tours and tastings that allow coffee enthusiasts to experience the entire journey from bean to cup. This personalized engagement fosters a sense of connection and loyalty towards our brand.

Company's Mission Statement

Our company exists to provide coffee lovers worldwide with the finest, sustainably grown coffee beans from the renowned Kona region of Hawaii. Through our commitment to quality, sustainability, and customer engagement, we aim to elevate the coffee experience while making a positive impact on the planet and the lives of those involved in the coffee production process.

By focusing on our mission, we aim to set ourselves apart in the coffee industry and establish Kona's Finest Coffee Plantation as the go-to choice for discerning coffee enthusiasts who value exceptional quality, social consciousness, and sustainability.

The structure of Kona's Finest Coffee Plantation will be a Limited Liability Company (LLC). This choice was made to provide a balance between liability protection and flexibility in management. As a startup, the LLC structure allows us to enjoy the benefits of personal liability protection while maintaining a less complex and more cost-effective business structure.

In the initial stages, the team of experienced coffee enthusiasts and business professionals will manage all obligations themselves. This ensures a hands-on approach and a deep understanding of the business operations. As we grow and expand, we will strategically hire professionals to assist us in areas such as marketing, distribution, and finance.

Small Business Advisors and Registration Procedures

To navigate the registration procedures, rules, and liabilities associated with forming an LLC, we will engage the services of a reputable business attorney. Their expertise and guidance will ensure that we comply with all legal requirements and minimize any potential risks or issues.

Additionally, we will seek the advice of small business advisors who specialize in the coffee industry. These professionals will provide valuable insights into market trends, competition, and best practices. Their guidance will help us make informed decisions, streamline our operations, and maximize our chances of success.

Attaining Company Objectives

To achieve our company objectives, we have outlined a comprehensive plan. Our first priority is to establish strong relationships with distributors and retailers worldwide. We will conduct thorough market research to identify potential partners who share our passion for sustainable and socially conscious practices. By collaborating with reputable distributors and retailers, we can ensure that our high-quality coffee beans reach coffee enthusiasts globally.

In terms of production, we will invest in state-of-the-art equipment and technology. This will enable us to maintain consistent quality and efficiency in our coffee production process. By adhering to sustainable and fair trade practices, we can contribute to a better world while meeting the demands of socially conscious consumers.

Future Business Development

Our vision for Kona's Finest Coffee Plantation is to become a global leader in specialty coffee, renowned for our commitment to quality, sustainability, and customer engagement. We envision expanding our product line to include various coffee blends and flavors, catering to diverse palates and preferences.

In the future, we plan to open physical coffee shops and establish a strong online presence, enabling us to connect directly with consumers and further build our brand. By incorporating educational elements such as coffee tours and tastings, we aim to create a unique and immersive coffee experience, fostering a loyal customer base and driving brand loyalty.

We will continuously innovate and adapt to changing consumer trends and preferences, ensuring that Kona's Finest Coffee Plantation remains at the forefront of the specialty coffee industry.

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Perfect Daily Grind

Tips to Create a Business Plan For Your Coffee Farm

Owning a coffee farm is no easy task. With the current coffee price crisis , the ever-present risk of pests and diseases , and unpredictable weather conditions due to climate change, there’s a lot to consider.

So it’s important to prepare as much as you can. A business plan is one tool that can help you identify where to focus your resources and how to plan ahead.

Find out why you should use a business plan and pick up some tips on how to create one.

Lee este artículo en español Consejos Para Crear un Plan de Negocio Para tu Finca de Café

Farm workers in Guatemala wash coffee cherries. Credit: Isabela Minondo

The Benefits of a Business Plan

It may sound intimidatingly formal to create a business plan, but in reality it’s just a document that outlines where you want to go with your farm. A business plan can help you project costs, identify long-term goals, and detail the steps needed to achieve your aims. It can also be a requirement for securing funding, whether in the form of grants or loans .

“You need a business plan to know where your business is going,” says Isabela Minondo, Sales and Marketing representative at Santa Inés de Medina Coffee Estates in Antigua, Guatemala.

“A business plan that takes into account all costs, not just the obvious ones, would at a minimum let farmers know whether they are operating at a profit or less during a harvest cycle,” says Benjamin Weiner, CEO and owner of Gold Mountain Coffee Growers .

You may also like Coffee Farm Management: How to Determine Your Production Cost

Natural processed coffee drying on patios at Mapache coffee in El Salvador. Credit: Fernando Pocasangre  

Depending on where you’re based, there may be organizations that can help you develop a business plan. Some government organizations and NGOs provide help, and cooperatives can also be a useful resource when putting one together.

You could also use a professional consultant to evaluate your business and develop a plan with you, though this will likely be a more expensive option.

Coffee trees at Finca Vizcaya in Guatemala. Credit: Ana Valencia

What to Include in a Business Plan

Business plans are specific to your needs and resources, so there’s no one template or formula that will work for everyone. Instead, there are some key points to keep in mind when putting together your plan.

Who are you, what do you currently offer, and what do you want to offer? Is your coffee commodity or specialty? Where do you want to sell it and are there realistic opportunities to do so?

Think long-term: don’t just consider this harvest but instead ask yourself where you want to be in the next five, ten, and twenty years. In order to get useful answers, it’s also important to evaluate your strengths and be honest about where you lack experience or confidence.

Learn more in How to Improve Profits: 4 Strategies for Coffee Producers

Do you understand who you are selling to, what the market for your coffee is, and how to reach potential customers? How can you promote your coffee to new buyers? What are the unique selling points of your coffee? It’s important that you know your product well so you can target the right buyers and talk about it confidently.

Learn more in Producers & Importers: How to Sell YOUR Coffee to Roasters

Roasters visit a wet mill in Guatemala. Credit: Fernando Pocasangre  

How well do you know your own profit and losses? Do you keep accurate records and do you plan for different scenarios? Your business plan should include your production cost , a profit and loss statement, and a cash flow projection.

Keeping track of your production cost will help you better understand your business and where you spend money. Knowing this can help you make realistic future plans and identify where to invest.

If you know your production cost, you can calculate your break-even point. This is simply how much money you need to make to cover your costs. A break-even point means that you are neither in profit or loss. To determine your break-even point, divide the total fixed costs of production by the price per unit minus the variable costs needed to produce the product.

Learn more in Coffee Farm Management: How to Determine Your Production Cost

A producer on his farm in Honduras. Credit: Perfect Daily Grind

A profit and loss statement simply records your income and outgoings over a defined period of time. It’s a good idea to create one at the end of each month to see which areas are most expensive, where you can reduce costs, and how much money you are actually making. This document is based on the simple formula of Revenue – Expenses = Profit/Loss.

The cash flow projection shows what finances you expect to flow in and out of your business. It’s important because it indicates when your planned expenses are too high or when you may have a surplus of cash on hand. it can help you decide whether to take out a loan or seek other investment.

Coffee cherries in a depulper at Mapache Coffee in El Salvador. Credit: Mapache Coffee

You may sell your coffee at a good price but not see the cash paid for six months. When that payment arrives, it may seem like you have a lot of profit, but it’s important to budget for the periods where you don’t have cash coming in. 

For example, you may have loan payments, labour costs, and daily expenses to consider. So although you may need new machinery and have the cash on-hand to buy it, take a look at your cash flow projection and evaluate whether you have enough money to cover expenses until your next payment and whether it’s better to wait to make any investments.

To make sure your cash flow projection is accurate, include all commitments such as loan payments or taxes due on a specific date, as well as living expenses.

Don’t confuse the cash flow projection with your profit and loss statement. Rather than recording what has happened in the past, the cash flow projection shows what revenue and expenses are anticipated for a specific period in the future.

Drying coffee beans are moved at a farm in El Salvador. Credit: SiCafe S.A de C.V  

How do operations take place on your farm? Can processes be improved or developed for new ventures? Make sure that you fully understand the activities at every level of production and know what equipment and supplies you own. 

Are your machines old or in bad repair? Replacements or repairs may need to be factored in to your estimated projected costs.

• Human Resources

How many people do you employ and on what terms? Consider how many seasonal workers you need and what rate of pay you offer them. Make sure to include cost of labour in your production cost to better plan ahead.

A coffee farm in Honduras. Credit: Perfect Daily Grind

Be Realistic in Your Planning

When you put a business plan together, be honest and realistic in your abilities and goals. The aim is to keep track of expenses and plans with as much accuracy as possible.

You should also be sure to factor in your cost of living. This includes food, housing, utilities, and daily supplies for your family. A business plan that doesn’t account for daily expenses isn’t a real reflection of your finances.

“When making even the most rudimentary business plan, it is important to take into account hidden costs,” Benjamin says. Examples include food and hygiene facilities for pickers, fuel costs for machinery and transportation, and the baskets or containers used in the harvest. Even seemingly small expenses can add up to make a difference to your bottom line.

You should also include some margin for unexpected events such as an unseasonal frost or outbreak of disease. Isabela says, “Make a budget considering your overall costs and predicted income. Your budget needs to have a 20 to 30% margin of error, depending on your economic capacity.”

A coffee picker at a farm in Honduras. Credit: Perfect Daily Grind

Investment & Growth

Business plans should also include details of where you plan to invest or expand. It’s important to carefully consider where to invest profit for the best long-term results. For example, you may want to invest in new infrastructure or machinery. But will you have enough cash on-hand in case of emergency, such as having to buy pesticides or fertilisers if there’s an outbreak of pests or a disease?

Use your cash flow projection to decide whether you can afford to make investments or are better off waiting. Consider how much available cash you need to feel comfortable in case of emergency. If you have a good idea of your cash flow, you can evaluate how much you can afford to invest in new infrastructure. You should also keep in mind that most investments will take a long time to show a positive income.

“In fantasyland, we would all be able to spend whatever we need on any part of the coffee production process to improve it. In reality, however, we need to be extremely careful in how and where we spend money throughout the year,” Isabela says. 

“You need to make sure you’re making a profit. So a business plan can really help allocate your expenses properly, depending on what your goals as a producer are.”

Raised beds at a farm in Honduras. Credit: Perfect Daily Grind 

Stay Open to Change & Adaptation

Where possible, create alternatives and back-up plans in case something changes. “Always create a plan B and plan C,” says Juan Vargas, the co-founder and Business Director of Fazendas Klem in Minas Gerais, Brazil.

Some aspects are out of your control, such as the international market, but you need to be ready to adapt to likely variables. For example, do you know where to find new buyers if your previous one doesn’t return this year? What happens if your coffee scores higher than you expected in cuppings? How about if your crops are affected by coffee leaf rust or a pest? 

All of these events would change your profit and loss scenarios, so you should review and update your business plan. The end goal may remain the same, but the method of getting there might need to be adapted.

“In the coffee market, prices and costs constantly change and even weather conditions are unpredictable,” Juan tells me. 

“[Use] the emerging or bottom-up strategy, where you involve the new practical knowledge of your team to share different perspectives to help you solve real world problems. It means the key objectives of your business plan may not change, but the path for it will.”

A coffee plantation in Minas Gerais, Brazil. Credit: Fazendas Klem

Even if you don’t experience big changes, it’s important to make sure your business plan stays relevant. Mark a date in the calendar for an annual review, or schedule them more often if you think you need to.

“As the times change, farmers with formal or informal business plans should adapt and re-analyse their business structures and actions,” Ben says. 

“We’ve had farmers asking us for higher-cupping varieties because roasters will pay them a higher premium for those coffees. We’ve seen farmers invest in a truck, only to realise the truck isn’t ideal for their part of the mountain – one farmer sold a Jeep to buy several donkeys instead. The key is to analyze and take action before it’s too late.”

A coffee farm in the mountains of Espirito Santo, Brazil. Credit: Ivan Laranjeira Petrich  

Creating a business plan may seem complicated or intimidating, but look at it as a simple outline of what your business is and where you’d like to go.

Ubion Terra is the Managing Director of O’Coffee Brazilian Estates . He says that “with a plan you will define your business purpose, your short and long-term goals, and will duly research and better understand the market environment. [It will help you to] identify the core resources and capabilities you need to operate the farm and will help you to forecast financial scenarios, [which can be] useful for getting loans.”

Talk to other producers, your local cooperative, and any other relevant organizations in your area. Together, you may be able to develop a basic business plan. As you become more confident, you can add more information until you have a detailed business plan that will help you better understand your farm and succeed.

Find this interesting? You may also like Should Coffee Producers Listen to Roasters’ Advice?

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Hugh is a contributor based in New Zealand

Perfect Daily Grind Ltd, Webster Griffin, Brooklands Park, Farningham Road, Crowborough, East Sussex TN6 2JD United Kingdom

[email protected]

Company registration no. 9673156

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The ability to transport goods quickly, economically and reliably is vital to a nation’s prosperity and capacity to compete in global market. Ethiopia is a landlocked country in East Africa with a land area of about 1.13 million square kilometers and a population of about 82.8 million. 85 percent of the population is living in rural areas and the economy of the country is based mainly on agriculture accounting for 45 percent of GDP, 80 percent of exports and 80 percent of employment. Ethiopian logistics system is characterized by poor logistics management system and lack of coordination of goods transport, low level of development of logistics infrastructure and inadequate fleets of freight vehicles in number and age, damage and quality deterioration of goods while handling, transporting and in storage. This coupled with lack of sea port resulted in poor linkage of producers (farmers) to the consumers (market) and non-competitiveness of Ethiopian goods on global market, which compromised livelihood of the people and economy of the country. There is very high rate of traffic accident (first in the world) and congestion in cities and at city inlets/outlets to which freight vehicles contribute significantly. Efficient and effective logistics system needs to be put in place to solve these socio-economic problems. The objective of this work is to assess the current status of logistics practices in Ethiopia with the aim of identifying the gaps, potentials and constraints for development of effective and efficient logistics system. To meet this objective, qualitative assessment of the soft and hardware of logistics, freight logistics and transport companies, organizations dealing with documentation of import and export goods and case studies of specific supply chains of major goods in Ethiopia are made. Information from secondary sources is used to carry out the assessment. Presence of road of high density and quality makes efficient distribution of goods easy. Customer orientation, low level bureaucracy at customs and trade facilitations expedite goods flow. Availability of skilled manpower, conducive labor regulations and business environment promotes economic activities. On most of these criteria, Ethiopian logistics system is found to be poor. There is urgent need for research on the problems, for which Excellence Center for Freight Transport and Logistics in Ethiopia (EthioLog) is established. Intermodal transport system is the best solution and commencement of construction of 10, 000 km rail line is an opportunity to use road-rail integrated intermodal transport system to solve the logistics problems of the country.

Tagese Kalsido

Daniel Ayalew Mekonnen

Thomson Kalinda

The main objective of this study was to identify the actors in the coffee value chain in Zambia as well as to identify and assess the opportunities and employment creation potential of the value chain. The study found that the potential for the growth of the coffee sector lies in Zambia's production of the globally competitive Arabica coffee variety; the increasing global demand for specialty coffee in premium niche markets (mainly based on fair trade and organic farming principles); and the existence of institutional arrangements such as the Zambia Coffee Growers Association that promote, regulate and coordinate the development of coffee in Zambia. However, despite this potential, the coffee sector has been experiencing a downward trend in production and export of coffee beans. While a wide range of constraints from production to policy issues limit the growth of the coffee sector, the most noteworthy factors are the long production period of the coffee plant which acts as a di...

Berhanu Tereda

Nefisa Mohammed

Keith Chapman

This Arabica coffee manual for Myanmar is an activity under a FAO Technical Cooperation Program coffee project for Myanmar and has been prepared as a support base for training trainers and staff of the Coffee Research Information Extension and Training Centre (CRIETC) of Myanmar Farm Enterprises (MFE) at Pyin Oo Lwin. The manual has been compiled by Ted Winston, Jacques Op de Laak, Tony Marsh (International Consultants to the FAO coffee project), Keith Chapman (Industrial Crops Officer, FAO Regional Office for Asia and the Pacific) in collaboration with Okkar Aung (Director) and the staff of CRIETC. The manual contains key information of importance to farmers and managers of coffee plantations and is intended to be a primary source of practical knowledge on Good Agricultural Practices (GAP).

Cornelis De Wolf

Habtamu Bogale

ABSTRACT This study aimed at identifying the major problems that are associated with the growth and success of MSEs specially focuses on trade, services, manufacturing, construction and urban agriculture sectors in Gurage zone three selected Woreda. In the study, both qualitative and quantitative research methods were used in order to achieve the objective of the study. Primary data was obtained using questionnaires, unstructured interviews and personal observations. The information gathered through questionnaire from a sample of 140 operators and face-to-face interviews were conducted with MSEs operators. Secondary data was also collected from books, journals, past research works, official documents and the internet. The respondents of MSEs operators were selected by using of Stratified sampling techniques from the study area. Besides, the interview questions were analyzed using descriptive narrations and summation of different respondents’ point of views. The analytical strategy used based on the assumptions developed by previous studies. Data were analyzed using descriptive and inferential statistics with the aid of Statistical Packages for Social (SPSS) for measure of central tendency and dispersion, Pearson’s Product moment correlation Coefficient and multiple regression analysis. On the basis of the findings, the major problems facing the MSEs operators in Gurage zone are lack of finance, lack of management skills and previous industrial experience, lack of sufficient working premises, lack of infrastructural facilities, lack of proper marketing skills and lack of conducive working environments. The results of the findings further indicate that there exists positive strong significant relationship between independent variables and dependent variable. Finally, the selected independent variables may significantly test the variations from the dependent variable at 1% level of significance. Based on the results of the findings, recommendations are forwarded to operators of MSEs , to government bodies and for the other researchers. Key words: Micro and Small Enterprises (MSEs), Factors, Growth and Success.

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Coffee Farm Financial Feasibility Model Template

This coffee farm financial feasibility model template prepares a financial plan for your next coffee growing project! Figure out the expected incomes and cash flows for a small or a large coffee plantation project. The model uses a bottom-up approach to model up to 20 different lands under management, crop yields, planting, growing, and harvesting schedules. The model then calculates the expected monthly harvest volumes of coffee beans for each land under management. Revenues are derived by applying the respective pricing assumptions (up to 4 different coffee bean quality levels). OPEX, CAPEX and other assumptions are then used to prepare detailed profit and cash flow forecasts.

This Excel model spreadsheet template was developed to model the operations and financial results for a single-crop coffee bean farm, which plants its coffee beans on several land pieces. These lands are modeled to reflect different years’ outcomes when acquired, different tree ages, harvest yields, and cost structures. The model then calculates a monthly schedule with complete financial statements, which are then aggregated yearly. The financial feasibility can be assessed by analyzing the relevant return metrics (IRR, NPV, Payback Period) and financial ratios over the forecast period (5-10 years, depending on the model version).

The components of the Excel spreadsheet in the form of a financial feasibility model template include the following: • Executive Summary with a variety of tables and charts, including • Financial Overview • Various Breakdowns • Project Metrics such as Internal Rate of Return (IRR), Net Present Value (NPV), and Payback Period based on unlevered and levered cash flows • Uses and Sources of Funds Tables • Time to Break-Even • Assumptions Section • General assumption sections which allow specifying the model’s currency, units for weight and volume to be used throughout the model, the first forecast year, applicable income tax and interest rates, applicable net working capital assumptions, and other • Yield Assumptions, including the modeling of anticipated annual changes in yields • Yearly price assumptions for coffee beans as per 4 different quality levels • Direct cost assumptions for planting, tree care (growing), harvesting, and processing costs • Labor cost assumptions, including the forecast of required annual Full-Time Equivalent (FTEs), salary levels for indirect labor, and hourly rates for direct labor. • Assumptions for OPEX (operating cost) budget • Assumptions CAPEX (capital expenditures) budgets • A table that keeps inventory of the available lands under management (up to 20 different land areas) • Year of land acquisition and type (if owned or rented) • Land acquisition costs • Rental expenses (if applicable) • Planting Schedule • Schedule when growing and tree care activities will start • Schedule when the first harvest can be expected • If planting will be a new planting (no revenues from that piece of land before) or a re-planting (land plot can have yields and revenues before year/month of planting) • Yield table, which specifies what annual yield can be expected for which piece of land and in which months of the year • Monthly harvest schedule • Annual yield index • Harvest volumes • A growing cost table specifies the months the different costs, such as fertilizers and herbicides, will be spent, and the annual expected total costs per hectare and total cost basis. Costs can be adjusted for each piece of land under management or left to be linked to a specified general assumption. • Exit value assumptions based on either EV/Sales, EV/EBITDA, or EV/Hectare multiples • Detailed Monthly Forecast includes tables for lands and trees under management, monthly planted areas, monthly harvested areas, monthly harvest volumes, prices, direct monthly costs, OPEX, and many other Key Performance Indicators (KPIs). The monthly sheet also includes a detailed financial statement to understand Profits, Balance Sheets, and Cash Flows. • Annual Forest, which aggregates the monthly figures into annual figures and includes the following: • Income Statement • Balance Sheet • Cash Flow Statement • Financial Ratios • Key Performance Indicators such as Lands Under Management, Planted Area, Harvested Area, Harvest Volumes, etc. • Fixed Asset Tables • Debt Schedule • Standardized Income Statement (as % of Sales) • Profit per Hectare • Direct Cash Flows • Project Valuation • Free Cash Flow Forecast • Uses of Funds Calculation • Break-Even Analysis on a per Hectare Basis (Pro Version only) • Instructions guide on how to work with this model • Terms & Abbreviations Table • Model Structure Outline

In case this model (monthly forecast) is too complex or you feel requires too many details to enter, kindly check out the alternative model template – Starting or Buying a Coffee Farm (only includes annual forecast but is simpler).

This financial feasibility plan template comes in two versions, a Standard and a Pro Version both fully editable in MS Excel. The Standard version includes a 5-year forecast horizon, while the Pro version comes with a 10-year forecasting period and a break-even analysis on a per-hectare basis. Free PDF Demo Versions containing the model structure are available for download as well.

File types:

.xlsx (MS Excel)

.pdf (Adobe Acrobat Reader)

•   Standard version  –  $89.00 Version 1.2
•   Pro version  –  $119.00 Version 1.2
•   Free Demo PDFs  –  $0.00 Version 1.2

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By Financial_modelenthusiast on February 24, 2023 at 16:36

This financial model is the one of the best , most detailed and comprehensive model in the market

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By eFinancialModels on May 14, 2021 at 06:15

To download the Coffee Farming Financial Model Template, simply add it to your cart and proceed to Checkout. You will then receive an email containing the download link of the model template(s) that you purchased. We hope this clarifies and if you have any questions or further need assistance, please do not hesitate to let us know via [email protected] .

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