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:
- 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
- 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.