NEW JERSEY WAREHOUSE
This pilot is targeting coffee roasters who buy green beans ex warehouse. Our team has a long-standing relationship with a New Jersey facility, that services the Eastern Seaboard through to the American Midwest. The warehouse offers best in class operations management and carries significant volumes of Intercontinental Exchange (ICE) certified stocks, as well the unsold inventories of multinational traders and roasters.
Given the relationship, we are well positioned to integrate client feedback and measure cost-savings and efficiencies being achieved during the pilot phase.
At completion of the pilot, supplementary technology upgrades and further product testing, as well analysis and marketing; will be undertaken prior to a global release Q4 2019.
Our efficient, transparent and secure online marketplace will benefit all participant in the coffee supply chain, including consumers who want to know where their coffee came from and if farmers received a fair price. This pilot will also address the coffee industry’s key challenges:
NO BARGAINING POWER
Farmers and smaller-scale roasters, and cooperatives operate as individuals and lack bargaining power; which undermines their ability to get a fair price for their product. Coffee Discovery allows both growers and buyers to set an informed live price.
Coffee farmers have limited supply chain visibility through to the roaster which impedes their ability to differentiate and adapt to changing consumer trends; where roasters are increasingly assertive in the sourcing and commercialization of their product. Coffee Discovery ensures the added-value can be communicated along the chain and monetised.
Roasters rely heavily on trade houses for trade finance and related services. Since receivables are credit instruments created by the trade transaction, receivables can be directly issued on the blockchain network as an asset - reducing fraud and enabling banks to offer more attractive financing.
Traditionally, when farmers or cooperatives sell their product they call multiple buyers to get the best price, gauge market depth and then finally negotiate the deal and payment terms—a time consuming task. Coffee Discovery eliminates this inefficiency by displaying live prices, and even location, where a trade can be confirmed at a click of a button.
Coffee quality is not only a function of the physical bean attributes, but the inherent “cup profile” or flavour. Coffee Discovery can guarantee the bean’s quality through an immutable shared ledger, where cup profiles are made visible to buyers who bid on the beans.
Knowing where your coffee originates is an important food safety measure, with “crop to cup” traceability essential for specialty and certified beans such as organic. Farmers and co-operatives can extract a premium by moving away from the commoditisation of their product, thereby differentiating it from their competitors.
Initial business due diligence and research is being undertaken by Sam Grigg. Based in New York, Sam is a seasoned industry veteran having worked in senior positions in Vietnam, India, Colombia and the U.S.