Cocoa Cost

COCOA BEANS

These above table contents are representatives snap shot of time or seasons, not rigid but, often daily or cumulative monthly moving averages changes in prices. The issue of pricing is predominately unstable in agriculture industry world-wide and strongly advice that, attention, must be centred upon prices, to attain success in business transactions. The information as stated above is only relevant within Nigeria local market but, not operational internationally.

In fairness, the idea of business is to streamline costs by spending less on procurement costs, and trade stock at high price per metric tonne.

Trading commences with the farmers, for those who are called Direct Buyers or professional buyers, would have invested many years of training and developed polished skills acquisition his / her skills will record successions and successful trades amounting to profits.

NOTE:

1. The required standard number of Bags are 480
2. 16 Bags, weigh and measure at gross 64kilograms and a deductible 1.75kilograms to allow for foreign bodies, the net weight must be 62.064 kilograms but, the field practices are weigh and measure as standard 62kg per bag. ONE METRIC TONNE will be 16Bags in multiples of 62Kilograms, then absorbed by the prevailing local market price. Key note is that, cost engineering must be identified with at strategic buying point, otherwise, losses will ensure.
3. FEES AND COMMISSION IS PAYABLE TO YOUR TRUSTED AGENTS

The risks assessments are often greater than when you dived into unknown business; the outcome might be too costly initially on these following grounds;

If buying directly from the farmers and a limited knowledge to identifying quality cocoa beans, the whole stocks could end up been rejected out rightly, hence, capital outlays is lost, as no one will buy a sub-standard product.

Additional cost is bored without making any sales such as

• Transaction cost to move the stock to a safe location for storage at cost
• The cost of a storage for unknown periods
• The cost of protecting valueless product at unparallel amount will be incurred
• Time and more money spent seeking for potential buyers
• Cost of finance will sparrow out of control for not making prepayment of  interests as when due
• By a chance, if sales is found and dealt, the willing buyers will not pay the prevailing market but offered lower price lot cheaper than the market price. Business experiences or practices would have thought him or her to imply that the seller is desperate seller but, buyer will offers lesser price, loss is recorded at end of business transaction.
• Business turnovers will amount to zero and initial capital lost to bad business transaction.

Capital and undue stress must be managed constructively to avoid unhealthy financial commitments that one’s is not accustom with but, the best business practice will be to engage the services of professionals fully to guide and direct the first to three business transactions, to acquire and gain the necessaries experiences

There are others risks assessments aspired trade professionals should be conscious of which are as follows;

1. Never release monies to any agents to conduct your strategic buying for you, it always leads to bad trade and monies will get lost.
2. When buying from the wholesalers, they usually mixed percentage of quality and bad products into per bag, one could still be exposing good money for bad business, which could still be rejected at the point sale.
3. Fraudsters aiming to exploit or take advantage of your lack of business inadequacies of trade protocols may successfully out talked or convinced anyone to make advance cash payments or cash transfers before initial business transactions commenced.

Avoiding these risks, one needs to acquaint to robust regularities policies and basic procedures entailed to perform successfully in business transactions should be committed to heart.

Knowing your geographical locations to source raw stocks and identifying the right association to join, in order to buy Raw Cocoa Beans, otherwise, the community will sanction any cocoa beans farmers from selling to strategic buyers.

To avoid this, a strategic buyer, may employ the services of a reputable professional tradesman as he or she would have been registered with the traders associations in the local communities, to engage in a cocoa trade business. Usually, terms of engagement is financial rewards expressed in fees or percentage of business procurements, for one-off or on-going business concerns.

The indicative costs as shown above in table such as:

• Warehouse for storage of raw material on monthly or yearly rent inclusive commission agent.
• Staffs for perfecting stocks procured and handlings packaging.
• Manual labourers to spread the stocks not completely dried in the sun, usually, these stocks will be bought and discounted taking into the considerations weigh, moisture, colouring conditions, infectious or contaminated produce, and stones or foreign bodies. Professional buyer are skilful to make an informative decisions to conclude all business transactions to the benefit his or her clients
• Staffs Clarke to weigh and measure accurate weigh of cocoa beans inside the bag and is also responsible for sealing the bags. He or she delegates to the packers to remove the cocoa bag from weigh and measure, for stalking, in deadliness for sales.