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While the nation may have been known globally for its Ceylon tea leaves and drinks, Sri Lanka is now making waves in the coffee industry, particularly specialty coffee brews. Coffee types such as Arabica, Robusta, Maca, Excelsa, and the native Ceylon coffee are grown in favourable local conditions, resulting in distinctive and flavourful beans that are slowly gaining international recognition.
For the benefit of small business owners and potential coffee exporters, DHL Express Sri Lanka will go through some essential know-how of the coffee market in this blog. From coffee exporting and different types of packaging to international shipping necessities and the varieties of documentation needed.
To start, we’ll look at the three key factors that contributed to the potential of Sri Lanka's coffee industry.
Firstly, the rising global demand for specialty coffee, particularly in the United States, Japan and Australia, presents a sizeable market for Sri Lankan growers. According to Statista, in 2023 alone, the revenue in the coffee segment of exports amounts to a staggering US$154.50 million, with an expected annual growth rate of 2.18% through 2025.
Secondly, the close partnership between the Australian and Sri Lankan government, solidified by the 2017 Australia-Sri Lanka Trade and Investment Framework Arrangement (TIFA), facilitates trade and investment, making the export of Sri Lankan coffee to Australia both viable and lucrative for stakeholders involved. Given the noteworthy statistic by McCrindle that three in four Australians (75%) enjoy at least one cup of coffee per day, the potential market for Sri Lankan instant coffee in Australia becomes even more enticing. More compelling is that of those coffee drinkers, 28% consume three or more cups daily. This preference is especially pronounced among those who opt for instant coffee, underscoring the promising prospects for Sri Lankan instant coffee in the Australian market.
Finally, Sri Lanka's unique climate and topography provide the perfect conditions for coffee cultivation. According to Nimmi Galearachchi, Coffee and Agronomy Lead at Market Development Facility (MDF) in Sri Lanka, the country's distinct weather patterns, high elevations, and rich soil lend Sri Lankan coffee its unique flavour profiles that capture coffee connoisseurs around the globe.
Based on the research of the MDF, approximately 80% of specialty coffee originates from smallholder or backyard farmers who are primarily women. By tapping into overseas markets via international shipping, a significant opportunity for inclusivity and diversity in market involvement is enabled as farmers are empowered to expand their business to Australia. This also improves the income for people in vulnerable communities, strengthening the economy and social fabric.
Regarding the type of coffee primed for export, Sri Lanka's coffee palette is broader than the ubiquitous Arabica and Robusta. Unique coffee drinks like the energy-boosting Maca coffee or the vibrant Ceylon coffee are also gaining popularity abroad. The Excelsa coffee, renowned for its complex tart flavour and fruity aroma, is another name to watch.
Having dissected the potential of Sri Lanka's coffee industry, the next step is understanding the actual process of coffee exportation. Here's a simplified step-by-step guide:
Once you've obtained the necessary national and international certifications, you can proceed to package your coffee appropriately, ensuring it's protected and meets Australia's import regulations.
Using proper packaging is essential to maintain the quality of coffee beans during transit.
First, you can put them in bags:
Then, place them in a box slightly larger than the coffee bag so it is easier to ship them overseas. Fill any extra space with protective materials such as bubble wrap or packing nuts. This ensures stability and minimises accidental dents or damage during transit. Use packaging tape to seal the box, guaranteeing safe delivery of Sri Lanka's unique coffee flavours to Australia.
After packaging, arrange shipping with a reliable international courier. Make sure you also arrange suitable insurance to safeguard your shipment.
As a final note, remember that a thriving export business hinges on smooth shipping. DHL Express Sri Lanka can guide SMEs through the complexities of coffee export clearance, assist with important documentation, and provide valuable advice on taxes and duties.
Our express deliveries, end-to-end tracking visibility, international direct shipping services also guarantees that your beans reach their destination in peak condition. Given the growing interest in Sri Lankan coffee, now is the time to seize this golden opportunity. Whether you're a small farmer, a business owner, or a coffee enthusiast, you can be part of the expanding Sri Lankan coffee renaissance, one specialty brew at a time. Open a business account with DHL Express Sri Lanka today.