Coffee makes the world go round – doesn’t it?

Who doesn’t love a good coffee? Mark Munnull, Managing Director of family-run business KOSEM Ltd hopes everyone does because that’s what he’s producing from the Jiwaka Province in Papua New Guinea. Continually networking with small local growers, Mark seeks excellence in the perfect cup for KOSEM’s growing international export market. 

Mark understands the steps KOSEM must follow to succeed in this competitive environment. Undercapitalisation is frequently cited as the reason why businesses fail; to be appropriately capitalised, access to finance is critical. To have access to finance, businesses must demonstrate to financial institutions that their record-keeping and business practices are up to scratch and up to date.

Utilising Business Link Pacific’s subsidy, working with local advisor Keymap HR has helped KOSEM to do just that, implementing accurate record-keeping and processes for payroll and HR for the eight permanent staff and 20+ seasonal workers. They had previously not had a professional system, and Mark recognised the need for a system which suited KOSEM’s business model. 

We needed the tools which come with the system; we wanted to make sure we were doing the right thing.” Mark’s overriding objective was to generate proper reporting, giving KOSEM access to capital. 

Using a local advisor has many benefits.

They really understand the difficult conditions in which we work and the specific issues we face. This means they can target problems, such as the automated ‘clock on clock off’ time recording tool not working in the bush and we can work with them to find solutions.”

Being local also means they are available to discuss problems when they arise, so nothing gets left for another day. 

Accessing BLP’s subsidy has allowed KOSEM to attract more investors and more finance by demonstrating they run a tight business with good systems. One spinoff is that they now fulfil the requirements to be part of a project being funded by the Australian Department of Foreign Affairs and Trade which will boost international business. 

Over 20 years in business, KOSEM was established by Mark’s father, John Munnull.

I don’t remember a time when I wasn’t in the coffee business!”

Mark believes focusing on quality and establishing good relationships with growers leads to high quality export services and the highest quality coffee for both local and international markets. 

With cash crops such as coffee, the level of capital on hand is important for expansion. COVID has impacted KOSEM’s momentum but Mark and the team plan to just keep working through it, making savings where they can, constantly working to improve their future and the future of their growers – and of course international coffee lovers worldwide.

Having access to finance through better systems has greatly improved the long-term prospects for KOSEM.

We are in a better position to approach financial institutions. It comes down to cash flow and whether the business is profitable – we are in a good position now to achieve our goals.” 

Quality approved Business Link Pacific business advisors can offer advisory services at a discounted rate through the BLP subsidy service. Subsidies range from size based on the scale of the business and the services provided. An eligible company can apply for the BLP subsidy through an approved business advisor. 

BLP supports an extensive network of advisory partners across the pacific islands, who offer services in 15 different areas, including accounting, marketing, human resources, diversity and inclusion and business strategy. 

To get in contact with a BLP business advisor, businesses that employ 5 to 50 employees can use the free self-assessment online tools, such as the Business Health Check and the Continuity planner. Also, companies can book a free face-to-face consultation in the countries where BLP operates to go through the business diagnostic, a comprehensive assessment of business needs and opportunities. Based on the assessment results, a business is provided with a list of Business Advisory Service Providers that can help address relevant business needs.  

Visit Business Link Pacific Portal to use our free self-assessment online tools or book a local consultation in your country. Country contacts.