The Magic of Coffee

1
The Magic of Coffee

• Heleanna
• History
• Interesting facts about coffee and Ethiopia
• Coffee Ceremony
• Types of coffee available in Ethiopia
• Economic coffee environment in Ethiopia currently
• Moplaco, running a coffee factory.

2
Heleanna

• Took over the family business, bcs I lost my dad
  in January 2008.
• I had recently finished my MBA, in Spain, and was
  working for a biotechnology Company, called
  AMGEN. I was living in Bliss.
• I was happy as an employee, content. The most
  stressful situation I had to face was delivering
  my reports on time.
• I am now running a 200 employee company, and I
  practically live with stress every day, since all
  those people depend on my decisions.

3
COFFEE

• Coffee Must be hot as Hell,
• Black as the Devil,
• Pure as an Angel
• and Sweet as Love.
• Guisepe Fumagalli

4
History

• Coffee was discovered in Ethiopia.
• Kaldi, a goats herd, saw his goats dancing after
  eating some red berries. He shared the experience
  with the monks on a nearby monastery. Since then
  the monks used it to stay up all night praying.
  Kaldi and his legend, were born in Ethiopia.
• Coffee soon was transported in the Arabian
  Peninsula, and from there to the rest of the
  world.

5
Some factsDid you know?

• That the Queen Sheba, was from Abyssinia?
• That she had a leg that was like a goats hoof?
• That her first son was called Menelik, and his
  father was the King Solomon of Israel?
• That Abyssinia is the current Ethiopia?
• That Ethiopia, means the country of the
  sun-burned men? Ethia-Opsi, is OBVIOUSLY a
  Greek Word, that means Dark Face, or Burned by
  the Sun?

6
Some factsDid you know?

• That PUSHKIN, one of the worlds most famous
  writers was half Ethiopian?
• That AISOPOS, the famous fable writer was an
  Ethiopian Slave to the King of Samos?
• That Ethiopians, drink coffee up until today,
  mixed with butter and salt? That it is considered
  to be the BEST Coffee in the WORLD?
• That the ARC of NOE, is hidden in Ethiopia? Kept
  in a Church, and guarded by one priest?

7
Some factsDid you know?

• Only the Sultans mother was allowed to have
  coffee?
• First coffee houses appeared in Constantinopole
  in the 1400. At the time, it became the
  exclusive drink of the Sultan and his mother. It
  was forbidden to be sold and distributed. But as
  all things forbidden it acquired a magic, and
  became v. popular.
• That the first coffee houses were
  calledPennyUniversities ?
• It cost 1 penny for a cup of coffee.

8
Coffee Ceremony

• Roasting the beans, burning incest, cooking
  popcorn, decorating with flowers and grass, the
  Coffee Ceremony is an integral part of Ethiopias
  culture, and daily life.

9
Types of Coffee

• Ethiopia has only been producing ARABICA beans.
  There are two types of processes WASHED and
  SUNDRIED method
• Harar- The queen of Coffees
• Yirgachefe- A true Mocca flavor, with fruity and
  flowery connotations
• Sidamo- Lemony, and citrus. Perfect for Espresso
• Lekempti- Soft, and Sweet
• Djimmah- The stable, standard coffee that
  occasionally surprises.
• Limu- Winey, soft, aromatic

10
Moplaco- Running a coffee business

• Moplaco was founded in 1973, by my father. It
  means Mocca Plantation Company. His dream was to
  have his own plantation, but in 1976, the
  Military Regime confiscated everything.
• He persisted, and made the company grow, despite
  the adversities. His major buyer, where more than
  90 of the sales go, is Japan.
• Japanese, love good coffee, and love Mocca coffee.

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Moplaco- Running a coffee business

• I consider my self lucky to have completed an
  MBA. I would have never thought that it would
  serve my life in the way it does since I took
  over Moplaco.

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Moplaco- Running a coffee business

• Personnel Issues Actually the hardest ones to
  deal with
• 1st of April An employee has AIDS. He has a wife
  and a daughter of 8 years old. How can we help
  him, and maintain a secrecy?
• 3rd of April A driver takes Moplaco to court. He
  claims a 3000 USD compensation. He had initially
  resigned. Moplaco accepted his resignation, bcs
  he was stealing
• 7th of April A cleaner, puts up a show, on how
  sick she is, and how she needs help. The person
  in question, has already taken 65 days of absence
  due to sickness, and Moplaco has given her a
  loan, and also 3 months paid work, during her
  recovery from Hemorrhoids!!!!!

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Moplaco- Running a coffee business

• MY DILEMAS, on Employee Issues
• How can I run an International Company, with
  Ethics, and yet maintain a family feel?
• How can I grow, without becoming impersonal?
• How can I help others through this company?
• How can I help my employees grow, when sometimes
  they cannot even see the benefit of it?
• How can I keep my costs down, and continue
  helping them, by giving them a competitive
  salary?

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Moplaco- Running a coffee business

• Financial Issues
• Maintaining a healthy B/S to keep the banks happy
• Maintaining a healthy cash flow, during times of
  distress and of zero sales
• Keep the business running, which means borrowing
  even more money (Coffee is bought on basis of
  Overdraft Facilities from the bank)
• Keep a healthy level of investment outside the
  company, so that the Capital of the Company keeps
  its value- Banks Shares, and Other investments
• Reducing my debt to the Banks, whilst keeping
  sales going.

15
Moplaco- My family Company

• Political Issues
• Coffee is The POLITICAL commodity in Ethiopia.
• The Prime Minister shows an active interest, and
  the Country plunges in Distress when Sales are
  affected
• Operate in an environment where freedom of speech
  is not really an option.
• Keep healthy relationships with other exporters,
  that have political affiliations.

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Moplaco- My family Company

• Current Issues affecting the Coffee Landscape
• March -2008 Japan discovers agrochemicals in the
  Ethiopian coffee beans. Their level are far too
  low, and the Coffee Shoshas (big corporations)
  know it. But they cannot fight their Ministry of
  Health, and tarnish their image to the Public.
• Japan is the third biggest buyer of Ethiopian
  Coffee, buying quality coffee and paying premium
  prices.

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Moplaco- My family Company

• Current Issues affecting the Coffee Landscape
• June 2008 All exports to Japan cease. Moplacos
  90 sales go to Japan. Panick? What to do next?
• March 3, 2009 Government gave us 7 days to sell
  all the coffee stock we have, otherwise they
  would cease our operations. Moplaco has more than
  50 containers in stock, due to the cancelations
  of the Japanese contracts

18
Moplaco- My family Company

• BANKS START TO SQUEEZE BUSINESSES, SINCE THE LOSS
  OF FX HAS AFFECTED THEM ALSO.
• Friday 6th of March, 2009 Moplaco has to meet
  the President of NIB Bank, to discuss the
  Overdraft Facility pending.
• Sunday 8th Visitors from Korea depart after 10
  days of visiting the Interior.
• Wednesday 11th Meeting with President of
  Commercial bank, to discuss the Overdraft
  facility pending. Without OD, we cannot buy
  coffee.

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Moplaco- My family Company

• March 23rd MBA visitors from Ohio University
  arrive.
• March 24th 6 exporters loose their license and
  are accused of Hoarding, and of Distorting the
  Local Market, and hence hurting Ethiopia. Panic
  again. Who will be next?
• 25th Small roaster from China arrives and wants
  to buy only 8 bags. He wants to visit the
  Ethiopian coffee growing regions. How can we
  please him?

20
Moplaco- My family Company

• 30th of March The Ministry of Health of Japan
  visits Ethiopia, and the Moplaco Sites. What will
  they think, so that they can resume business?
• 1st of April The Ministry of Agriculture calls
  all Exporters on a meeting to discuss current
  economic situation.
• 15TH of April Flying to the US, for the SCAA
  conference. I have 25 containers to be shipped to
  new clients. No mistake can be done, and I have
  no one really in Ethiopia that I can fully trust.

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Issues and Challenges.

• Corruption
• Hoarding coffee to push prices up
• Manipulating prices by entering into private
  agreements before the auction actually takes
  place
• Putting sands in the bags, increasing the weight
  of coffee
• Bribing government officials.

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Things to remember

• Coffee Needs
• Quality
• Traceability
• Fair Prices at all levels
• Fair Practices at all levels
• Passion!!!

23
Things to remember

• Coffee IS NOT A COMMODITY
• Coffee affects the lives of Millions
• Coffee is complex

24
Heleanna

• I WISH YOU ALL THE LUCK AFTER YOUR MBA!
• Contact Details
• Heleanna Georgalis
• moplaco_at_ethionet.et
• Heleanna.georgalis_at_iese.net
• 251-11-6455999, office number
• 251-19-11200-186
• Pls visit me, and visit Ethiopia when you want.