Burundi’s coffee is exported as “Green coffee”.
The coffee is sold in lots of 320 bags (container of 19,200 kg) even though uncompleted lot can be sold. Since 2008, coffee is being sold in two ways i.e. direct sales and call to bid. To minimize risk, some coffee owners sell their coffees on forward contract basis. Contracts can be on differentials based on price to be fixed on seller’s call and sample to be approved. The contracts can be on fixed prices subject to sample approval.
Nowadays there 3 groups of marketing agencies i.e. Marketing Committee (a group of mixed companies owned by government and privates; these companies are known as Sogestals), COCOCA (consortium of coffee farmers cooperatives) and a consortium of private companies.
Buyers are sometimes put into competition in order to sell to the one who offers higher prices. This also helps to get reference of price.
Once green bean is available, sample is sent to buyer for approval. If the sample is approved, the process of export starts. These are papers that have to be got before the export:
- 1) Invoice
- 2) Contract
- 3) Sales agreement delivered by ARFIC
- 4) Warrant
- 5) Grade Confirmation
- 6) Export documents
All needed papers can be obtained in 5 opening days.
Coffee from Burundi is bought FOT Bujumbura or FOB Dar Es Salaam. It takes almost one week for the truck to arrive at port in Dar-Es Salaam from Bujumbura.
Notice: to make sure samples that are sent to buyers are representative and authentic, the Regulation Authority (ARFIC) is the one which is responsible for taking and keeping all samples. Each seller has to take samples from the sample room managed by ARFIC.