Risk Management Education Workshop

Tuesday, 3rd December 2019, 1:00PM – 5:00PM

Organised by:

By invitation only, interested parties can apply to IBC Asia.
Please email: IBC Asia reserves the rights to review, accept or reject applications.

Workshop Takeaways:

Defining the current market environment

  • Global coffee market review
    • Fundamental and external market drivers explored
    • Evaluating the impact and influence of key external market price drivers
  • Hedging theory explored – What is a hedge and why hedge?

Building your risk management program

  • Defining your internal risk management policy
  • Defining your risk and risk appetite and defining your hedging tool kit
  • Building your internal risk management expertise
  • Control and transparency – The bedrock of your risk management program

Introduction to futures

  • Understanding the key players roles and functions in the market
    • Futures contracts: Robusta and Arabica contracts
  • Understanding open interest and volume
  • Locking in price
  • Market conditions
    • Understanding the implications of future market conditions on your hedge performance

Introduction to options

  • Understanding calls and puts
    • Strike and premium price explained
  • In, at and out of the monies
  • Defining the key differences between options and futures
  • Building simple plain vanilla option hedging strategies
    • Going long calls and puts

Introduction to the OTC Market

  • Defining the OTC market
    • Evaluating the pros and cons of the OTC market
    • What are the key functions of OTC markets
    • Why incorporate OTC into your commercial hedging portfolio
  • Case studies incorporating OTC studies

Workshop Speaker

Oscar Schaps
Global Head of Soft Commodities, President – Latin America
INTL FCStone LLC, United States

Mr. Schaps is the Division President for FCStone Latin America LLC, and as part of his responsibilities continues to hold his position of Head of Global Soft Commodities.  Mr. Schaps holds a Bachelor’s Degree in Agriculture Economics from University of Florida (’86) and has 20 years of professional experience in risk management.   Mr. Schaps started his career as a Risk Manager when he joined Hencorp in 1989, as a coffee specialist and joined INTL FCStone in 2010 when it acquired Hencorp Futures, LLC.  Mr. Schaps was President of Coffee Network, LLC and held a board seat on the National Coffee Association of America. Also, in the past he has served as Director or Committee Member for various international coffee organizations such as, Pacific Coast Coffee Association, and the Association for Coffee Excellence and the Brazilian futures exchange, B3.

Day 1, Wednesday, 4 December 2019

Main Conference Registration & Morning Coffee


Chairperson’s opening remarks

Simon Hague, Head of Coffee APMEA, DaVinci Gourmet APAC, Singapore

Regulator’s Address:
Policy Update on Vietnamese Coffee Industry and the Push to Develop Instant Coffee Markets

Dr. Nguyen Do Anh Tuan, Director General, International Cooperation Department, Ministry of Agriculture and Rural Development (MARD), Vietnam 

Vietnamese Roasters’ Roundtable:
A Roadshow of Market Developments, Risks and Opportunities

  • 2020-2025 overview of Vietnam coffee sector – How are we doing?
  • Domestic market consumption, export and instant coffee markets
  • Role of technology in the coffee supply chain
  • Improving the competitiveness of Vietnam’s coffee industry
  • Coffee products innovation and branding strategies

Lee Yeong Sheng, General Manager, The Coffee Club International, Minor Group, Thailand

Thai Nhu Hiep, Chairman, Vinh Hiep Ltd. Co, Founder, L’amant Café, Vietnam
Hoang Van Thuy, General Director, Hoang Thuy Dai Group, Vietnam

*Kindly note that the panel discussion will be conducted in a mix of Vietnamese and English. Simultaneous translation (VN-EN and EN-VN) will be available on-site.

Morning Networking and Refreshment Break


VICOFA’s Opening Address:
Vietnamese Coffee Price Outlook Trends and Forecast – By Types and Region

  • Production forecasts for Vietnamese coffee production – Arabica, Robusta, ground and instant coffee
  • Price trends for the various coffee types – Forecast for 2019/2020
  • Regional hotspots – Where in Vietnam is open for investment for processing facilities, plantation, packaging or general partnership?
  • Government policy on coffee industry development – How can conference audience form the partnership with local coffee companies?

Luong Van Tu, Chairman, Vietnam Coffee and Cocoa Association (VICOFA), Vietnam


The Evolution of the Robusta Market 

  • Overview of the changes in supply and demand  
  • Comparison of the main origins 
  • Development of Robusta exports 
  • Trends in demand and related challenges for producing countries 

Bernard Cremieux, Managing Director, Bero Coffee Singapore, Country Manager, Neumann Gruppe Vietnam Co Ltd (NKG), Vietnam 

Vietnam Robusta 2018/19 Market Overview and 2019/2020 Outlook

Vietnam Robusta 2018/19 Market Overview

  • Crop production and export updates
  • Local price and differential price

Vietnam Robusta 2019/20 Market Outlook

  • Production and processing situation
  • Local trading and export situation
  • Local consumption

Do Ha Nam, Chairman, General Director, Intimex Group, Director, VSCOM (Vietnam Singapore Commodities Pte. Ltd.), Vietnam


Global Markets:  Prices and Price Risk Management along the Coffee Chain 

  • 2019 – 2020 coffee price outlook 
  • Analysis of price drivers influencing the coffee market 
  • Market growth patterns: Robusta vs. Arabica coffee 
  • Managing price risks and the coffee supply chain 
  • Conclusions and policy implications 

Oscar Schaps, Global Head of Soft Commodities, President – Latin America, INTL FCStone LLC, United States 

Trends Shaping Coffee Trade Flows: from packaged to prepared coffee

  • Trend of blurring category lines in the beverage ecosystem and how this affects the coffee sector?
  • Changing coffee competitive landscape and its impact on the value chain

Sudip Sinha, Executive Director (Senior Analyst) – Beverages, Rabobank, Singapore

Coffee Analysts’ Panel:
Global View of Supply-Demand Fundamentals, Inter-Market Currencies, Futures Market Positioning, and Long-Term Prices

  • Trade flow outlook in the global coffee market
  • Coffee bean pricing trends
  • Supply-demand projections of Arabica and Robusta coffee beans
  • Managing price risks in the regard of uncertainty and volatility Factors to consider when hedging/trading coffee futures: Foreign exchange, transfer risks, etc.

Sudip Sinha, Executive Director (Senior Analyst) – Beverages, Rabobank, Singapore

Hai Luu, Director of Foreign Exchange Sales in South, Southeast Asia Joint Stock Commercial Bank (SEaBank), Vietnam
Oscar Schaps, Global Head of Soft Commodities, President – Latin America, INTL FCStone LLC, United States
Jonathan Clark, General Manager, Dakman Vietnam Ltd., Member of ED&F MAN Coffee Division, Vietnam
Rohit Malhotra, Chief Executive Officer, Gloria Jean’s Coffees, India
Steve Wateridge, Head of Research, Tropical Research Services, United Kingdom

Networking Lunch


GEA Process Engineering Extraction Methods – History and Latest

  • Green coffee, instant coffee production & consumption
  • Yield from coffee bean when producing instant coffee
  • GEA Process Engineering complete lines for Instant Coffee

Preben Dam, Area Sales Manager, GEA Process Engineering A/S, Denmark

Sithar’s Expansion Strategy to Bring Burmese Coffee to Global Coffee Markets and Processing Technology Uptake

  • The rise of specialty coffee differentiation and production in Myanmar
  • Driving an inclusive and sustainable coffee supply chain
  • Leveraging technology to drive better coffee beans processing – what are the technology used

Thu Zaw
, Chief Executive Officer, Sithar Coffee, Founder, Mandalay Coffee Group, Myanmar  
Zayar Oo
, Director of Processing and Green Bean, Sithar Coffee, Joint General Secretary, Myanmar Coffee Association, Myanmar

Coffee and Technology – Improving Farmer Livelihood and Bringing Them Closer to the Consumer

  • How do we foresee technology bridging the supply chain gap?
  • Some use cases of tech being used to impact lives of producers
  • Use of technology for Farmer Income Enhancement
  • Improving Consumer Experience by connecting them to the producers

Deepak Kaul, Senior Vice President, Olam International, Singapore

The National Coffee Database System – Harnessing Digital Tools to support Vietnamese Coffee Farmers

  • Database system overview: Origins, seed use, status, resource management and inter-cropping
  • Updates on pilot program held in Lam Dong Province, and plans moving forward to implement this on large scale Importance of origin certification for sustainable coffee development
  • Increasing smallholders’ participation in the database system

Tran Cong Thang, Director General, Institute of Policy and Strategy for Agriculture and Rural Development, Vietnam

Processing Technology Panel:
Vietnam and Global Investment in Technology and A Long-Term View of Capacity, and Supply / Demand Balance

  • Regional investment and technology trends in processing facilities
  • Government’s policy and incentives
  • Regional and international demand markets for instant coffee products

Leon Skaliotis, Sales and Marketing Director, Flavourtech, Australia

Tran Cong Thang, Deputy Director, Vietnam Coffee Coordination Board (VCCB), Ministry of Agricultural and Rural Development (MARD), Vietnam
Jeremy Choong, Chief Executive Officer, Owner, Paksong Coffee, Singapore
Thu Zaw, Chief Executive Officer, Sithar Coffee, Founder, Mandalay Coffee Group, Myanmar

Afternoon Networking and Refreshment Break


Understanding Coffee from Consumer Anthropology to Innovate Better for the Future

  • Coffee from humble beginnings has become one of the biggest beverages in the world but –
  • How do the journeys and cultural changes affect the consumer perception?
  • How can we take these perceptions and apply to todays globally led and locally connected world?

Simon Hague, Head of Coffee APMEA, DaVinci Gourmet APAC, Singapore

Customer Centric Coffee Innovation Through Digital and Brick-and-Mortar Experience

  • Understanding your customer and coffee education – brand mission of being a ‘personal coffee guide’ to people
  • Developing B2C and B2B coffee marketing plans, differences and strategies
  • Building customer connection through online subscription
  • Creating in-depth customer experience through various brick-and-mortar experience

Youn Seo Young, Head of B2C & B2B Marketing, Bean Brothers, Korea

Understanding Consumer Preferences and Innovation Needed from Farm to Cup

  • Understanding the market consumption trend and stay agile with innovative diversification
  • Experimenting with new methods, new flavours and fashionable branding
  • New trends in packaging in response to consumer psychology

Jeremy Choong, Chief Executive Officer, Owner, Paksong Coffee, Singapore

Coffee, Brand Story and Marketing Approach to Engage Young Generation

  • Content as a key strategy to win mind and heart
  • Coffee-based drink in retail chain – how far can we innovate?
  • Implication of technology into marketing practices

Vo Duy Phu, Co-founder, Commercial & Marketing Director, The Coffee House, Vietnam

Going “GLOCAL” – Leveraging on Global Trends while Being Locally Relevant

  • Leveraging global insights and scale while understanding the local coffee markets in terms of consumer demands and industry trends
  • Adopting global product innovation and trends to local needs
  • Technological uptake for coffee roasting and retailing

 Lee Yeong Sheng, General Manager, The Coffee Club International, Minor Group, Thailand

Chairperson’s Closing Remarks & End of Conference

The Coffee Dinner
The Rooftop BBQ

Day 2, Thursday, 5 December 2019

Main Conference Registration & Morning Coffee

Chairperson’s Opening Remarks

Dr. Seema Narera, General Manager – Supply Chain, Tata Starbucks Pvt Ltd., India


Branding, Marketing and Distribution Strategies for Instant Coffee

  • Instant coffee market and consumption trends
  • Partnerships and opportunities on distribution

Satya Sutar, Country Head, Vietnam, Philippines, Singapore, Food Empire Holdings Ltd.

How to capture the true roasted coffee flavour for instant coffee production

  • Ways to retain the natural origin coffee flavour with a processing line that is continuous, automated, easy to use and that has a very small footprint
  • How the Integrated Extraction System (IES) allows the true roast and ground flavour to be captured and protected prior to any high temperature extraction occurring.
  • Many other benefits of IES

Leon Skaliotis, Sales and Marketing Director, Flavourtech, Australia

Morning Networking & Refreshment Break


Scaling Up the Coffee Retailing Business 

  • India’s coffee retail sector and opportunity for international coffee suppliers
  • Manufacturing and sourcing quality coffee
  • Leveraging on partnerships with local and international brands to compete and scale up coffee franchises
  • The impact of climate change on coffee production

Rohit Malhotra, CEO, Gloria Jean’s Coffees, India  

Taking Vietnamese Coffee Culture to Greater Heights – How Consumer Preferences and Retail Trends are Impacting the End Product? 

  • Outlook for the Vietnamese coffee franchise market and consumption trends
  • What goes into the price of coffee?
  • Adapting the business model to deal with rising costs and fierce competition
  • What it takes to compete with international coffee giants like Starbucks

Thanh Binh Le, Chief Financial Officer, Milano Coffee Vietnam, Vietnam

South Africa:
Launching the World’s First Fully-Blockchain Certified Coffee

  • Coffee supply chain challenges, and a walk-through on how blockchain tech addresses some of these challenges through “bean to cup” tracking
  • How does this help to boost farmers’ incomes?
  • Other opportunities explored for blockchain tech and/or other innovations

Mwambu Wanendeya, Chief Executive Officer, Carico Café Connoisseur, South Africa

How Businesses Can Leverage Digital Transformation to Streamline the Coffee Processing and Drive Business Growth

  • Current technological uptake in the coffee processing
  • Digitally led, coffee processing transformation status in India
  • Investment in digital technologies to reduce waste and limit inefficiency during processing

Dr. Seema Narera, General Manager – Supply Chain, Tata Starbucks, India

Coffee Roasters’ Panel:
Spilling the Beans on Staying Competitive in the Ever-Expanding Global Coffee Market

  • Expansion strategies, partnerships and other growth opportunities
  • How to stay competitive alongside large coffee roasting MNCs?
  • Challenges of building a coffee business around under-represented countries
  • Innovative business models currently explored in the coffee industry: Specialty coffee, sustainable coffee, social enterprises

Jeremy Choong, CEO and Owner, Paksong Coffee, Singapore

Jerry Gonzales, Founder, Akhanay Coffee Roasters, United States
Thanh Binh Le, Chief Financial Officer, Milano Coffee Vietnam, Vietnam
Youn Seo Young, Head of B2C & B2B Marketing, Bean Brothers, Korea

etworking Lunch


Chairperson’s Opening Remarks

Do Ngoc Sy, Asia Pacific Sustainability Manager, Jacob Douwe Egberts, Vietnam

Diversification by Smallholder Coffee Farmers in Vietnam

  • Regional updates on coffee plantations and processing plants in Dak Mil, Dak Nong
  • Issues affecting individual farmers in the coffee industry
  • Smallholder engagement and how to best collaborate with coffee companies
  • Partnerships and business models available to promote sustainable coffee development

Vo Dinh Danh, Leader, Dakmil Agroforestry Cooperative, Vietnam*

*Kindly note that presentation will be delivered in Vietnamese. English translation is available on site, and presentation slides will be in English.

Sustainable Coffee Regions – Local Actions for Global Results

  • Lessons from Brazil 
  • Plan in Vietnam 

Trung Pham Quang, Vietnam Program Manager, Global Coffee Platform, Vietnam

Afternoon Networking & Refreshment Break

Case Study: 
Working with Nestle and the Swiss Agency for Development and Cooperation on the “More Coffee with Less Water” Project – Enabling Sustainable Water Management and Higher Income for Coffee Farmers 

  • Project rationale: Groundwater depletion as a threat to coffee production and farmers’ livelihoods in Vietnam
  • Background of the multi-sectoral effort for grassroot implementation to improve smallholder farmers’ irrigation practices
  • Findings from the 5-years’ cooperation with Nestle and the Swiss Government

Dr. Dave A. D’haeze, Regional Manager Asia Pacific, Hans R. Neumann Stiftung, Vietnam

Combined Q&A Session

Panel Discussion:
Farmer support – Strategies for smallholder engagement and long-term sustainability  

  • Assessing the current state of smallholder engagement in the coffee industry
  • Importance of social sustainability in coffee development: Coffee and the UN SDG – a strategic approach to industry sustainability
  • Policy vs. Voluntary standards model: Which one is more effective?

Do Ngoc Sy, Asia Pacific Sustainability Manager, Jacob Douwe Egberts, Vietnam

Do Thanh Chung, Country Manager, Vietnam, Hanns R. Neumann Stiftung, Vietnam
Senthil Nathan, Hub Manager – Asia, Enveritas, Indonesia
Tran Bang Hung, Program Manager, Network of Fairtrade Asia and Pacific, Vietnam

Chairperson’s Closing Remarks & End of Conference