What Is Coffee Auction?
Virtual Coffee Auctions
Coffee auctions are not new. They have been a place to showcase high-quality coffees to buyers from around the world and to discover what the market is willing to pay for them. Coffee auctions have been a staple of the coffee sector for many years.
They are a good way to drive sales and also to create awareness about coffees from a specific origin. They can help producers by helping them build relationships with buyers and by giving them higher prices for their coffees. Virtual auctions are more cost-effective and flexible than traditional auctions.
They give producers the chance to reach a larger group of international buyers, and potentially sell their coffee for higher prices. Coffees have started to appear more and more over the years, giving producers who grow high-quality coffees better access to international buyers. The Port of Mokha auction in Yemen was first held in 2018, and the Gesha Village was launched in Ethiopia in the year of 2017:
The coffee sector has had no shortage of challenges over the past 18 months. Logistical problems, travel restrictions, and shipping delays have made buying green coffee more complex. Buying at an auction is not a different thing.
Green Coffee Auctions
Green coffee auctions are a popular way to buy and sell coffee. They help coffee producers by giving them an opportunity to sell coffee at premium prices, and by connecting them with buyers. Green coffee has been traded for centuries.
Coffee companies hold auctions on-site or on the internet, and are typically held by importers, exporters, and coffee companies. They want to bring attention to the specialty coffee producers. Coffee producers receive better coffee prices and are more likely to sell their coffee in new regions.
Specialty Coffee Auctions
Coffee auctions can be a great place to promote high-quality coffees. Farmers receive good prices for their harvest, and they also enable direct relationships between producers and buyers. A good price can help producers.
This can improve quality and ensure that they continue to sell coffee at premium prices even in the midst of a wildly fluctuating C price. Specialty auctions can allow producers and buyers to talk. Producers can plan and invest if they have immediate payment.
Direct Trade: A New Mechanism for Creating Trustable and Transparent Relationships
Direct trade is when producers sell their green beans directly to the roaster. Taking out the middleman and importer means more transparency. The buyer can visit the source, evaluate the product, and establish a relationship with the farmer.