Private auction of coffee and things you didn’t know

Private auctions are a relatively new concept in the coffee industry. Typically, these auctions are organized by importers, exporters, NGOs or other industry stakeholders in the producing countries. It used to be held in person, but now many auctions are starting to take place online, allowing buyers from all over the world to attend.

Prior to the auction, all submitted coffees are graded by professional Q experts on the Specialty Coffee Association’s 100-point scale. At some sessions, pre-auction coffees must score at least 86 points to move to the next evaluation stages. This evaluation process helps promote innovation and improve quality in green coffee auctions.

To participate in the auctions, buyers must register online in advance. Furthermore, the number of seats is limited so registrants may have to pay a fee to participate in the auction. In the auction, buyers need to bid on different lots of green coffee. They will then bid at a specific level until all the coffee has at least one bid or until a specific amount of time has passed without anyone else bidding.

According to many manufacturers and suppliers, private auctions give buyers the opportunity to access rare and limited edition coffee lots. Because this is where manufacturers or cooperatives introduce exclusive and extremely rare farm lots. Finca La Hermosa’s Gesha Forest auction, for example, took place online on July 5, 2023. The auction featured a variety of Gesha coffees. Each variety has its own flavor, aroma and character from different origins, including Guatemala, Panama, Tanzania and Ethiopia. Additionally, some coffee lots undergo processing methods unique to each farm.

Private auction coffee lots are often small in scale. This can mean that producers can get a higher price for their coffee because there is usually only one buyer buying their coffee. In 2004, Hacienda La Esmerelda sold one of the Geishas for $21/lb at the Best of Panama (BoP) auction and achieved a world record for the highest price ever paid for a cup of coffee. Even in 2021, the batch of Gesha honey processed by Elida Estate was sold at a sky-high price of 6,034 USD/lb.

Private auctions promote transparency, traceability and sustainability in the specialty coffee industry. Producers know where their coffee is going when it is purchased through auctions. Buyers can also know the exact origin of the coffee, increasing traceability. Furthermore, through controlling and paying high prices for quality coffee lots, auctions show respect for the producer’s dedication. Buyers and manufacturers also have the opportunity to meet, discuss and build long-term relationships. This helps the industry make more practical developments.

According to expert opinions, specialty coffee auctions are often associated with exclusivity and high quality. However, more and more green coffee auctions appear on the market. Does the current growth in auction volume contradict the scarcity of extremely rare specialty coffee lines? In addition, in the past, the store mainly introduced wet and semi-wet processed coffee, highlighting the uniqueness of the coffee’s origin. But current auctions highlight new processing techniques, causing manufacturers to try to follow these trends. This could cause the market to prioritize novelty over intrinsic coffee quality, threatening the sustainability of the coffee industry and the stable livelihoods of farmers.

Coffee auctions bring a rare experience, quality, value in terms of transparency, traceability and promoting long-term cooperative relationships in the chain. But for the industry to be fully sustainable, stakeholders need to strive towards quality and ethical, fair, and original values rather than uniqueness based on taste. If you want to experience specialty coffee beans that are both delicious and sustainable, visit XLIII Coffee to enjoy and feel.

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