STiR coffee and tea magazine

34 STiR coffee and tea / Issue 2, 2018 (April / May) Single Serve Cup Filling & Sealing Machine *) Entry Level One Lane Machine, DCC-1-1500 *) One Machine, Different Cups *) Speed: 30 pcs / min *) Weight / Dimension: 880lb / 80'' x 26.5'' x 70'' *) Supply the Lids and the Welded Cups Welcome to visit us at: Catching Cups Out Hot Sealing Nitrogen Flushing Lids Detecting Placing Lids Vacuum the Coffee on the Edge of the Cups Nitrogen Flushing Nitrogen Flushing Filling Coffee / Tea Nitrogen Flushing Cups Detecting Insert Welded Cups 12 11 10 9 8 7 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10 11 12 May 19-22, NRA'18 Booth #9247, Chicago Jun 12-14, WTE'18 Booth #615, Las Vegas Email: sales@eastsign.com Eastsign Int'l Ltd. 10203 Corkwood Road Suite 130, Dallas, TX 75238-1229 Apr 19-22, SCAA'18 Booth #2025, Seattle DCC-1-1500 Doing Business in China Once considered the world's facto- ry, China is pursuing self-sufficiency and a consumer driven economy. It will be the investment of per- sonal assets that trigger the next round of growth in several next- generation industries identified in the government's latest five year plan. The plan is tellingly labeled: Made in China 2025. China's first phase of economic reform, ending in 2012, promoted small-scale, local family enterprises that include tea growing and, more recently, coffee manufacturing. In early 2013 a new economic model was adopted. The emphasis shifted to increasing domestic consumption rather than exports. The ambitious were encouraged to leave gov- ernment service (xiahai) and state-owned enterprises to ven- ture into the world (zouchuqu). The emphasis is on small- and medium-sized enterprises (SMEs) because it is the private sector, not state-owned enterprises (SOEs) that has led to job creation. In 2017 an astounding average of 12,000 startups regis- tered daily. Rural prosperity and employment are important goals. In Yunnan Province alone there are 250,000 coffee farms and 450,000 farmers, a number that increases by the day. The Yunnan Coffee Exchange is the ideal go-between as staff are trained to appreciate quality coffee and know the ways of navi- gating China's rules and customs. Basics The first point of contact is generally a sales representative, possibly a senior sales executive if that person is fluent in Eng- lish. In many instances refreshments (generally tea and a light snack) are followed by a video that presents the organization in the best light. The Chinese excel at hospitality and putting their best foot forward. Westerners often want to "get down to business" but to ensure a stable and long-term relationship enjoy this welcome, advises Gordon Dumoulin in "China 101." Do not present a long list of questions; two or three are considered polite. Make them specific and give some thought to how your questions will be viewed by a delegation focused on making a good impression, he writes. Introductions often do not include the key decision-makers in daily operations and management. To meet these people, ask questions during a tour. Prepare in advance so that you know the corporate structure and basic operations, products, and services. Ask specific questions to gain insights, no com- mentary is required. Open ended questions can be intimidat- ing and yield overly general responses. If you do not see a good fit, don't express feelings of dis- appointment, writes Dumoulin. If the initial signs are not prom- ising, show your appreciation for their effort. They likely sense the same mismatch. Disengage with grace. The Chinese have a saying: Just let the candle burn down. — By Dan Bolton China's choice Of the 10 highest earning coffee exporters only half grow coffee. Brazil is a true powerhouse due to its massive production (one third of the world's coffee is grown there) and its domestic market. In 2016 Brazil generated $4.9 billion from exports, a sum representing 15.9% of global value. Vietnam was second at $3.2 billion (10.5% of world exports) but revenue was almost entirely from the sale of huge quantities of low-value green coffee. Colombia ranked third, earning $2.5 billion (8% of total coffee exports by value) followed by Germany (7.6%), Switzerland (6.7%), Italy, Indonesia, Belgium, the United States, and Honduras (2.8%). If the sector shows profits, investment will follow and China could soon be among the world's top 10 coffee exporters. It ranked 17th among the 70 countries exporting significant amounts of cof- fee in 2016 with an estimated $528.5 million in sales, about 1.7% of the world's total coffee exports. These numbers are estimates from the US Department of Agriculture and the World Factbook's exports because China is not a member of the ICO. See Why is China Not a Member of ICO, pg 36. Value addition The half billion dollars China received for coffee sent overseas is a rounding error for a country where exports exceed $2 trillion but new jobs (financed by middle class consumers) that enrich rural communities is a national mandate. The pathway to prosperity is crystal clear, explains Lingle: "Im- proved wet mill operations; the introduction of new varietals; and greater market transparency as China joins ICO."

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