• back
  • 5.5.2-LOGISTICS AND INSURANCE-THE RISK TRAIL TO FOB: FARM GATE TO PROCESSING

  • THE-COFFEE-GUIDE.gif 
  • The risk trail to FOB: Farm gate to processing

     
     

    Money in transit: An obvious risk - buying agents carry cash. An insurance company may offer a cash in transit cover as part of a general policy but the extent of such a cover is always limited so be sure to find out exactly what is covered and what is not. When coffee values change the amount of necessary cash will change as well.

    Ownership at inland buying stations: At this stage coffee is often packed in unmarked bags and is very difficult to identify. Keep stocks at such stations to a minimum and transfer them to a central location as soon as possible. Unless there is a good, formal record system at the buying station it may be difficult to insure risk at this stage. Be certain to advise the insurance company of all circumstances, including negative aspects, to prevent difficulties arising after a loss occurs.

    Inland transit: Often inland transit is by small trucks under variable conditions of transport quality. Arrivals must therefore be checked for quality, weight and moisture content. To make fraudulent manipulation more difficult samples should be taken by a member of the quality control department rather than by warehouse staff.