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Roast SeptOct20 Feature3 StorageSamplesShipping
Roast SeptOct20 Feature3 StorageSamplesShipping
SAMPLES AND
SHIPPING
The Crucial Role of the
Green Coffee Warehouse
By Levi Rogers
A B OV E BETWEEN THE TIME THAT GREEN mills and co-ops to the port of export. Generally, this
Green coffee warehouse coffee is imported to when it is released to the roaster, role belongs to an exporter, but it depends on the
in Colombia. there is a key player that is often overlooked when contract. Sometimes the broker will need to pay to
Photo by Jiyoon Han we discuss the coffee supply stream: the independent arrange transport to get the coffee from a truck (or
green coffee warehouse. The warehouse plays a crucial FOT), into a container and then onto a ship. Once
P R E C E D I N G PA G E role in ensuring the quality and transparency of the the coffee is loaded into a container and then onto
Warehouse at coffee it holds. a vessel—or “on board”—it becomes known as FOB
Continental Terminal. Let’s take a closer look at coffee’s journey from or free on board. FOB refers to the price paid to the
Photo by Ruth Ann Church the farm to the warehouse, examining the critical seller of the coffee, usually the exporter. This price is
stopping points and key terms to know along the way. different from the price the exporter paid for the coffee
(which could be for coffee in parchment or cherry), but
P R E - WA R E H O U S E J O U R N E Y sometimes the exporter is also the farmer or estate—it
just depends on the supply chain.
Coffee is shipped in containers on vessels from the The responsibility, ownership and title of the
location where it is grown and processed. Before this container is then passed on to the importer by notice
step, someone must transport the product from farms, of a delivery order (DO); when the coffee has been
imported and clears customs and required inspections, a logistics the exporter or grower. It is extremely important for the owner (generally the primary concern in this step is checking for the
company or the warehouse will collect the container and deliver of the coffee, be it an importer or roaster, to double check all the presence of bugs or other “restricted” animals that may have
it to the warehouse. Port security requires that only registered marks on DOs and invoices to ensure correct information. hitched a ride in transit and pose a biosecurity threat if introduced
authorized logistics companies are allowed on the docks to collect A typical “full” coffee container holds 275 (69-kilo) bags to a specific country’s environment).
cargo. of coffee from Central America or approximately 320 (60-kilo) Arianna Hartstrom, owner and founder of Costa Oro
These global destination warehouses are typically located bags of coffee from origins like Brazil and Africa. Interesting International, which operates warehouses in both Portland,
along the coast at well-established seaports (such as the ports of fact: Containers often hold more weight than coffee typically Oregon, and Seattle, says this container unloading process can
New Jersey, Oakland or Tacoma for the United States; Vancouver ships. Green coffee is usually half the available space. These are take “anywhere from 50 minutes to two hours depending on how
or Toronto for Canada; and Grays or Liverpool for the United the standard lot sizes that the coffee industry considers a full many micro or specialty lots are included in the load.” Bags of
Kingdom). container load because additional net weight over 45,000 pounds coffee are then floor loaded (when a shipping container is stacked
The necessary documentation at this point is the bill of lading would require special equipment for over-the-road trucking and with freight that has been loaded from the floor up without using
(BOL). The BOL is a legal and negotiable document, and an original additional weight fees. a shipping pallet) and “lumpers” (laborers who handle freight)
BOL is required to collect cargo from the port as it establishes devan (unload) the cargo and stack it on pallets.
ownership. The BOL holds all the important information about S T E P 1 . D E VA N N I N G The warehouse team will then make sure all marks and bags
the coffee, such as the destination warehouse or roasting and quantities are the same. The warehouse will also be the first to
company, shipping weight, shipping line and International Coffee Once the coffee container has arrived in-country and passed notice any damage, be it moisture damage or insect infestations.
Organization (ICO) mark. Unique to each parcel of coffee, the ICO through customs, the container is then unloaded for further This process is fairly straightforward if the container consists of
mark includes the country code, parcel number, and the code for inspections by an importing country’s quarantine agency the same coffee and comes in undamaged, but if the container Devanning at Continental Terminal. Photo by Ruth Ann Church
roastmagazine.com
S T E P 2 . S TO R A G E cost of storage and financing—into their On the other hand, the benefit for
price per pound to a roaster, if they have roasters is that while storing the coffee, a
Conditions agreed on that price. In that case, those roasting business is not required to pay all
Coffee is stored while waiting to be released. costs are absorbed and won’t be a line at once for the product that is being held
If the environment is too humid, dry, hot item. in a warehouse. Roasters pay only for each
or cold, temperature control precautions
should be in place. However, typical
green coffee warehouses are ambient, and
temperature controls for storage facilities
are expensive. While coffee warehouses
ideally are located in climates where there
is not too much heat or humidity, or hot
temperatures, sometimes conditions are
less than ideal.
As home roasting purveyor and green
importer Sweet Maria’s says on its website,
“If it’s comfortable for you, then your
coffee is happy too.” This temperature
range falls somewhere between 60–70
degrees F with 40–60 percent relative
humidity.
It is the responsibility of the importer
or roaster to manage the time each coffee
lot spends in storage before roasting—as
storage time will affect coffee quality.
Storage fees
Roasters may see a line item on the
invoice from their importer for “storage
Green coffee warehouse is made up of a handful of different micro-lots, the who then verifies the sample for quality control. Once fees,” among some other potentially
in Colombia. crew must re-sort every bag to verify that count and approved for quality, the importer or owner of the unanticipated costs such as weighing,
Photo by Jiyoon Han marks are correct—an occurrence that the team at The coffee will send an arrival sample of the coffee to the strapping or reconditioning. Until the
Annex warehouse in Oakland, California, refers to as roasters/clients who have contracted the coffee. coffee is released to the roaster, the
“micro-lot madness.” It is crucial that importers work importer still has the responsibility for a
closely with the exporter and producers to ensure that Reconditioning coffee and must pay to store the coffee in
the bags that arrive are what were agreed upon in the Sometimes damage occurs in transit. Some bags the warehouse. The importing company
BOL, and there are no mix-ups. may become wet or moldy. The warehouse will then has taken on the financial risk of importing
After the coffee is unloaded, it is then weighed as coordinate with the owner of the coffee on whether to the coffee, holding it in its inventory and
the importer will often require a weight certificate to “recondition” the coffee, destroy the coffee or file an paying to store it. Charges are calculated by
verify that it received the correct cargo and number of insurance claim. Reconditioning involves discarding cargo weight in U.S. cents per pound, but
kilos/pounds. Any discrepancy will be disputed with any wet or damaged coffee and re-bagging the rest of these few cents can add up over time if a
the exporter. the green into new bags and GrainPro (if applicable). roaster is storing a large amount of coffee
After this, the inbound warehouse contact sends Coffee is then re-sampled for approval from the for a long duration of time. However, many
a “devanning” or “stripping” report to the importer, reconditioned bag to ensure consistency and quality. brokers may include “carry” costs—the
coffee they do release from the warehouse. Thus, the roaster could Both clients must verify this landed sample against the “pre- (i.e., the warehouse is not beholden to the importer or forced to
pay a few extra cents per pound to avoid having to release all the shipment” sample for quality assurance. give preference to one customer over another).
coffee at once, which is especially beneficial for roasters who may
be roasting only a few bags per month. Larger companies that How does one take a sample? Slack Bags
roast 50 bags per month or more and can release all 50 bags at Typically, a 350- to 500-gram sample is pulled from multiple, A slack bag is any bag of coffee with less than the expected net
once will certainly benefit from saving on storage fees. representative bags that account for 15-20 percent of the overall weight. This can be caused by reconditioning bags or damage
lot from different sections—top, middle, bottom, front and back. from the warehouse. Occasionally, if an importer has a spot coffee
STEP 3. SAMPLING A minimum sample of 350 grams is needed for green grading. sitting in the warehouse for a long time that has had multiple
“For conventional jute bags, beans are extracted with a coffee samples pulled, this bag will lose a few pounds. If a roaster ever
Once a sample has arrived or “landed” at the green coffee trier, which is a tool that allows removal of beans with little to receives a bag that is slack—and this was not mentioned on the
warehouse, the broker will verify the quality of the sample via its no damage to the jute,” says Hartstrom. “For GrainPro, each bag DO—be sure to weigh it and contact the importer or warehouse
internal quality control system. There is also a warehouse charge must be staged and carefully opened to remove the requested if there is a discrepancy.
for each sample drawn, another cost for brokers to consider. If amount of beans from a particular quantity of bags that would
quality is approved, a copy sample is then shipped to a roaster represent an allowed sample size for quality verification.” This is Re-sampling
or other clients for their approval. This green sampling service often done by a third-party sampling service. An additional measure of quality is re-sampling. This could occur
done at the warehouse is performed by an in-house or third- It is important that all warehouse services act as third parties if a quality control team finds a defect, such as potato, phenol or
party sampling service. Sometimes importers will order a larger so that roasters can feel confident the product they are getting ferment, after the landed samples are sent out. The owner of the
Sampling at a green coffee warehouse. Photo courtesy of Costa Oro sample from which to ship smaller samples out of their office. has not been altered in any way by the importer or broker coffee will then contact the warehouse to re-sample the coffee
for a more “representative amount,” such as an order for information (paperwork) we are provided,” she
3 kilos instead of 350 grams, or might even sample 100 says. “If any part of that paperwork is inaccurate or
percent of the lot, pulling representative samples from missing, we aren’t going to know. We are not part
every bag. of the sales/purchase process and we don’t have a
lot of conversations with buyers/exporters directly,
S T E P 4. R E L E A S E S so it really behooves all parties to review anything
written for them and have changes made right away
Once coffee is approved by the roaster, the importer or so things go as they prefer. Lack of detail literally can
roaster will request a “release” or DO from the warehouse. stop the whole show. For example, we might get a
Sheila Muchmore, account representative at The release but no shipping/carrier information, so we
Annex warehouse, believes that attention to detail is can’t do anything with the release—then a truck will
the most important concern for roasters and importers show up to pick up a coffee and we won’t know they
who are releasing coffee. “As a warehouse working were assigned or authorized.”
with hundreds of imports, we can only work from the All releases have a cutoff time, usually by noon on
the day prior to the desired shipping or pick-up date.
This is to give proper time for the warehouse to pull
the coffee and get everything lined up.
STEP 5. FREIGHT
THE FUTURE