Coffee Growing / Roasting Joint Ventures

Ijiba has thousands of hectares of organic coffee trees growing but without a market. Heretofore no management team was available, now Ijiba has the management to bring the coffee to market through Joint Ventures between the growers and the Micro-Roasters, reducing cost to the lowest future's price in return for a share of the coffee house's profits increased through tree to cup quality control.

Ijiba is the Incorporated Land Group (“ILG”) with an abundance of producing coffee trees in Papua New Guinea (“PNG”). Ijiba will develop farm-to-cup joint ventures (“JV”) with micro-roasters who should boast that the coffee they are serving comes from their own farms far away in the tropics.

Ijiba has certified 37,000 arable hectares, 130,000 arable hectares pending certification and nearly 700,000 hectares of original forest that are customary lands of the Ijiba Tribal Clan of Oro Province.

Ijiba goals support development by forging Joint Venture land use agreements which in this case for the organic growing of coffee that is heavily consumed particularly in the West where the new and lucrative growth industry of independent micro-roasters is retailing their coffee by the cup.

Micro-roasters should “own” the whole supply chain all the way back to the farm where Ijiba can make that possible through JVs which share retail profits. The USA helps to consume 25% of world production while the EU-27 consumes another 49%. Approximately 150 million Americans drink specialty coffee daily, averaging three cups. In the USA it is a $12 billion+ industry with approximately 24,000 coffee shops expected to double before 2015. The situation is similar in the EU-27.

One half shipping container of coffee beans transforms to 2,925,000 cups of specialty coffee. Micro-roasters seldom buy that much coffee in a year because they are behind the growth curve and therefore they must pay exorbitant prices never enjoying the advantage of the larger traders and importers who can buy at very low future prices. This JV opportunity for the micro-roaster levels the playing field and moves him ahead of the growth curve, but in return Ijiba receives a share of the retail profits.

Ijiba’s land was first planted more than 100 years ago with Jamaican coffee, known today as Blue Mountain, which is one of the finest coffees in the world. As a matter of interest nearly 96% of the coffee from PNG is Arabica, which is excellent, however Ijiba is blessed with both Arabica and Robusta offering more selection and diversity to the JV plantation grower.

Not only does the micro-roaster boast about being a grower of his own coffee but as a future side-sale prospect he may subsequently buy into his boasting rights that he also produces his expansion products from the coconuts, vanilla and chocolate (cacao).

Ijiba brings more than 25 years of international business management experience following the vision of its Chairman to provide green and clean sustainability for the community. Succession management consists of multinational business professionals. The Ijiba family knows the land, the plants, organic relationships that have been nurtured for generations and is open to JV partners connecting to the farms and they to the overseas retail markets.

The competitive strengths of Ijiba when utilizing the JV approach are in the innovative relationships with the partners, their new ability to expand their businesses with greater amounts moving to the bottom line. The JV partner’s new ability to appeal to greater market shares rebounds in more sustainable investment into the farms, the communities and thus the overall attractiveness of coffee.

The JV business model complies with the government’s rationale and goes further by helping the grower to also become an investor. The grower becomes directly connected to international retail business and does so through his own investment in providing his commodity to the JV at a low but fair price which secures his market and guarantees a share in the much more substantial retail margins of profit. The foreign investor becomes a part of the community as well and the two worlds are connected like never before.

It is the chicken and the egg. Several agencies of the PNG government offer mobilization programs through grants and/or soft loans with long terms. However, from a practical standpoint the applicant must actually be mobile before being able to avail of the programs.

The Department of Agriculture and Livestock has given assurances that they will conduct scoping of Ijiba's land and provide follow-on funding but first Ijiba must be in place and ready to participate in the scoping process. Other agencies, such as the National Planning Department, the Environmental Department, the Bureau of Fisheries and the Department of Energy have either expressed the same or published that it is there policy. In the private sector the West Pacific Bank has expressed similarly that upon completion of the scoping it stands ready to finance soft development loans.

Scoping is the essential first approach to overall planning in the official methodology of the PNG government. The outreach for an investor is to be able to become mobile and to start the process of true mobilization leading to incremental development, refinancing and funding through earning.

Ijiba owns 7% of the rights to six trillion cubic feet of LNG. Ijiba owns the land use rights to more than 37,000 hectares or arable land which may legally be used as collateral with the use assignable up to 99 years.

The Investor may exit anytime through market sale or to a speculator or an equity sale buy-out by Ijiba and/or major O&G developer.

The targeted turnover of the investment/loan is 24 months at 12% ROI per year for two years plus 1/2% (0.005) equity share in Ijiba Grand and the right of first refusal on all other loan / investment offers.