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Statement of Purpose - Connecting Growers & Roasters through Direct Trade

Coffee Industry's Holy Grail: Direct Trade from Origin
Creating Sustainable Economics
Leveraging Market Efficiencies
Industry Affiliations

Read also: SCA Management Team

Coffee Industry's Holy Grail: Direct Trade from Origin

If you're a commercial coffee roaster, you've probably thought, why can't I buy green coffee beans direct from origin, fresh from this year's crop? When trying to buy better quality at good prices, why am I stuck buying mostly warehoused coffee that's often a year or two old?

The fact is, like you, most roasters buy a lot of different kinds of coffees from different origins to create unique blends and to sell as single origin varieties. I remember thinking, 'I wouldn't mind having to do a little planning and wait for shipments from overseas to ensure I get better quality, at better prices, from this year's harvest, but where do I go?'

Well, I finally decided to do something about it and began to develop relationships with origin producers who have the same desire to set their own prices and sell direct to roasters in coffee consuming countries. This internet coffee auction and ecommerce website helps make this possible.

The idea for Specialty Coffee Auctions evolved to become this e-commerce marketplace with a two-fold purpose:

  1. To establish a direct trade channel that helps coffee roasters and wholesale green coffee buyers source high quality Specialty coffee direct from origin producers, and


  2. To provide origin coffee growers access to a global marketplace that leverages market-based incentives and supports more sustainable economics for coffee communities.

Paradigm Shift in Trade

I found that many growers who do not produce sufficient quantities to be able to ship full container loads, have not had the ability to create a unique brand and improve the market value of their coffees. As a result, Specialty coffee from small farms is often blended and sold in bulk with other, often lower quality coffees, thereby reducing the value and price they receive for their crops.

Specialty Coffee Auctions is helping to create a paradigm shift in trade through partnerships with Origin coffee growers, cooperatives, processors and origin representatives to uniquely brand these regional, varietals, estate and small farm coffees, and facilitate "direct trade" with coffee roasters.

While the current supply chain for high-quality Specialty coffees from grower to roaster may be efficient for large buyers and sellers, it has been very inefficient for small and medium-size roasters, and small Specialty coffee farmers. Through the Specialty Coffee Auctions online exchange, the supply chain is minimized and the resulting economic savings is passed on to both growers and roasters.

Creating Sustainable Economics for Coffee Farmers

Specialty Coffee Auctions is at the vanguard of organizations taking action to establish independent and proven market-based economics for Specialty coffee farmers based on product quality and brand value, thereby reducing the negative impact caused by the radical swings of C-grade markets.

When supply and demand come together in an exchange focused on Specialty coffees alone, value is influenced more by credible branding established through increased market knowledge and appreciation of origin, region, variety, grower, certification, quality in the cup and other demand driven market forces, leading to more predictable and sustainable pricing over time.

As more and more of the world's Specialty coffees are exposed simultaneously around the world and made available in one web-based marketplace, with price levels and quality compared across a wider variety of the world's inventory, sales and prices for lesser-known varietals will improve.

These improvements in market visibility and transparency create benefits for everyone, from coffee farmers to roasters, retailers and the ultimate consumers.

An Open Exchange Leverages Market Efficiencies

Specialty Coffee Auctions provides equal access to the global market for buyers and sellers of high-quality Specialty coffees anytime, anyplace, every day of the year through a real-time Internet auction and e-commerce service, thereby improving economic sustainability for Specialty coffee growers.

Developed as an open exchange, Specialty Coffee Auctions' primary objective is to provide Specialty coffee roasters and growers the ability to buy and sell green coffee more efficiently. These efficiencies reduce friction in the marketplace, providing more customers and better prices for growers, while creating a wider selection and better value for buyers.

Focused exclusively on the Specialty coffee industry, Specialty Coffee Auctions helps to create market efficiencies through:

  • A centralized Specialty coffee exchange that enables buyers and sellers to easily conduct business with one another.
  • Transparency, where origin sellers can offer coffee from the current harvest, identified by any combination of variety, grower, region, certification, quality and more, thereby supporting a fair market value.
  • A method for roasters to acquire unique high quality coffees directly from Origin countries, while maintaining anonymity and confidentiality.
  • An effective means for monitoring current and past trades for specific origins, regions, farms, estates, varieties and grades of Specialty coffees.
  • Increased exposure, expanded promotion and the establishment of brand value for growers, without requirements that add additional fees and burdensome costs.

Coffee Industry Affiliations

Specialty Coffee Association of AmericaSCAA Member

Intellidon Enterprises (Specialty Coffee Auctions) is a member and supports the Specialty Coffee Association of America's (SCAA) mission and objectives and has positioned itself to be an ally in the education and promotion of the value of specialty coffee the world over, as well as helping to create long-term sustainability for coffee farming communities.

Eastern African Fine Coffees AssociationEAFCA Member

Intellidon is also holds membership and is committed to EAFCA's vision to enhance the quality, competitiveness and profitability of the Eastern African coffees in global markets, thereby improving the well being of the producers and ensuring consumer satisfaction.

Coffee Kids - Grounds for Hope

CoffeeKids Grounds for HopeThrough its affiliation with Coffee Kids, SpecialtyCoffeeAuctions.com supports effective environmentally and socially sustainable prosperity in the developing world, from which the livelihood of all involved in the coffee industry are based.

Intellidon is dedicated to improving economic conditions for coffee farming communities worldwide through ongoing promotion and donations of a percentage of its profits each year to Coffee Kids, Inc.

"We've aligned our efforts with Coffee Kids because we believe that a focus on improving a community's economics through sustainable development projects is a rational way to improve the lives of coffee farmers and help stabilize the impact resulting from the ups and downs of the coffee industry.

"These communities have been dependent on a commodity that is susceptible to catastrophes brought on by unfavorable weather, earthquakes, volcanoes and wars. Coffee Kids' focus on expanding the economics of coffee farming communities beyond a sole dependence on coffee is a viable strategy that puts prosperity and dignity into the hands of those who directly benefit, i.e., the coffee farmers themselves."
- Steve Josephs, SpecialtyCoffeeAuctions.com Founder

Specialty Coffee Auctions is a wholly owned trademark of Intellidon Enterprises Inc., a privately held marketing company located in Denver, Colorado USA.

Read also: SCA Management Team

Specialty Coffee Auctions is an internet coffee auction and direct trade e-commerce
marketplace for sales of green coffee from origin producers shipped direct
to coffee roasters and wholesale green coffee buyers.




 

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