Auctions have long facilitated the sale of green coffee, connecting producers with buyers from around the world. For decades, they have served as platforms to improve market access for producers and reward their dedication to growing exceptional lots.
In recent years, the auction model has multiplied, with organisations and companies hosting both in-person and virtual events in a growing number of producing countries. Many of them focus specifically on one origin or region, with some private auctions offering coffees from a single farm to emphasise exclusivity and command high prices.
The coffee sector is changing; however, it is becoming more globalised as brands seek to scale and expand in new markets. These shifting dynamics bring about change in all corners of the industry, including coffee auctions.
Although they have always attracted international buyers, the auction model is increasingly bringing together producers from a range of origins – creating additional value for roasters as they seek more diverse offerings.
To learn more, I spoke to David Paparelli, the CEO of M-Cultivo, a coffee auction partner that improves market access through technology.
You may also like our article on why virtual coffee auctions became so popular.
How have coffee auctions evolved?
Green coffee auctions were first developed to identify exceptional quality lots and improve market access for the producers, especially smallholders, who sell them. The model was designed to increase the prices paid for high-quality coffee, fetching premiums above the market average.
To facilitate these transactions and create more lucrative opportunities for their producers, organisations and associations hosted in-person auctions at origin. Eager roasters from around the world would attend, cupping samples and bidding on lots that offered elevated flavour and quality experiences.
In-person auctions, however, posed challenges for both buyers and producers. Regular travel costs quickly added up, especially for SMEs and smallholder farmers who didn’t have the necessary capital.
“Because of geographical distance and the length of the supply chain, there are always barriers to entry. How can buyers and producers meet when they live in other countries and speak different languages?” says David Paparelli. He is the co-founder and CEO of M-Cultivo, an online platform that connects producers with international buyers and improves their market access.
“In appreciation of growing the product that the industry relies on, there needs to be respect for the people at the start of the supply chain, many of whom are underserved and left out,” he adds. “M-Cultivo was established to fill that gap, offering them a platform to enter new markets.”
Online auctions emerged as one of the solutions. Buyers order sample sets in advance, choose which coffees to bid on, and connect virtually with producers through a dedicated platform that handles the transactions, streamlining the process.
Still, the majority of these auctions have continued to focus on a single country or region. While this helps to spotlight coffee-growing communities from a specific region, it does restrict the diversity that modern auctions can offer – something that roasters are increasingly looking for.
Why coffee auctions are going international
As coffee brands look to scale and enter new markets, the auction model is poised to undergo further change – becoming increasingly globalised as it brings together not just buyers from different countries but also producers.
This stems from a growing demand for more diverse coffee offerings. As specialty coffee consumption has increased in a number of markets, both mature and less developed, consumers want differentiated novel flavour experiences.
In recent years, auctions have included a wider range of varieties and processing methods to cater to this shift in preferences. But inevitably, platforms that continue to focus on specific origins restrict the flavour diversity available to buyers.
It’s common for producing countries to be associated with a particular processing method. Brazil is known for its natural processed coffees, while washed coffees are particularly popular in Colombia. Costa Rica, meanwhile, pioneered honey processing. Effectively, this leads to high-quality yet similar sensory profiles.
By including producers from a range of countries, auctions can spotlight the vast diversity of coffee offerings – adding more value to the buyer’s experience as customers seek out new flavours.
Changing the auction experience
Many auction formats have cultivated a dedicated audience of specialty coffee roasters and traders willing to pay premiums for exceptional, unique lots that cater to niche markets. In turn, producers can brand themselves, establish a reputation, and build prestige. This opens up new market opportunities, potentially generating more revenue and increasing returns on investment in their farms.
“We want to build an international community of producers that we can partner with to strengthen their businesses and bring them into a globally competitive market,” David tells me. “We started with an auction platform in collaboration with Cup of Excellence and Alliance for Excellence and have since expanded to include more marketplace and offer sheet formats.”
As part of this globalising shift, M-Cultivo will co-host the Dubai Coffee Auction by DMCC on 10 & 11 February at the 2025 edition of World of Coffee Dubai. The hybrid event, starting at 14:00 GMT on 10 February, will bring together twelve of the world’s most esteemed, elite specialty coffee producers from nine different countries.
“The auction features 17 premium lots from producers such as El Injerto in Guatemala, Inmaculada Coffee Farms in Colombia, Brazil’s Daterra, Gesha Village in Ethiopia, Yemen’s Al-Khanshali, and more,” David adds. “Working with the Dubai Multi Commodities Centre (DMCC), we want to offer buyers exclusive access to premium coffees and an opportunity to connect with prestigious producers.
“In turn, these farmers can expand their global network within the coffee industry in Dubai, a rapidly growing specialty coffee hub in the Middle East, and beyond.”
Increasing access to exceptional coffees
By their nature, coffee auctions are exclusive – they offer the “best of the best”; this is increasingly clear with auctions like the Dubai Coffee Auction by DMCC. In the case of a few private editions, prices have reached over a staggering US $13,000/kg for some of the world’s most exclusive, ultra-rare lots grown by celebrated producers.
While demand for consistent and more affordable coffees remains strong, consumers expect more choice than ever. They simultaneously seek premium options that offer distinct flavour and quality experiences.
This trend is particularly noticeable in the thriving Middle Eastern specialty coffee sector, expected to be valued at over US $1.2 billion by 2030, where demand for ultra-high-quality lots has been increasing at pace over the last five years,
Dubai has been a focal point of this growth, most notably because of its international travel links. The DMCC, the UAE’s largest free-trade zone, also opened in 2002 – consolidating the country as a major trade hub for coffee in the Middle East.
This presents a viable opportunity for producers to sell high-quality coffees and expand their market access. Coffee auctions are effective platforms to assist in this process, connecting farmers with like-minded traders and roasters committed to sourcing excellent lots.
“Buyers really need to take their time to cup these coffees and to get some of these jewels in their hands,” said Willem Boot, who founded Gesha Village in Ethiopia, as well as Finca Sophia and La Mula in Panama. Boot will have two lots up for auction in Dubai, one from Finca Sophia and one from La Mula.
Auctions can be a gateway to new markets
For Daniela Rodriguez, a second-generation producer in Bolivia, auctions provide an opportunity for on-farm investments to pay off.
“At Finca La Rodriguez, our vision is to build and develop different varieties in Bolivia,” she said. Rodriguez and her family have spent the last 15 years preserving and restoring the country’s rich coffee-growing history, and their coffees are proof that Bolivia deserves to be considered among the top coffees in the world.
In previous private auctions, Los Rodriguez lots have sold for more than US $100/lb.
“I think we can compete with anybody,” said Bernard Uhe of Finca La Noria in Ecuador. “Competition is a great challenge.” Finca La Noria will have two Gesha lots, a washed and an anaerobic, featured in the upcoming auction. They placed first in the most recent Ecuador Cup of Excellence.
“We need more visibility,” Uhe said. “Ecuador deserves to be on the map.”
Although they don’t offer a one-size-fits-all solution, auctions undoubtedly allow roasters to source a wider, more exciting variety of coffees. Buying auction lots generally improves a brand’s reputation, effectively communicating its commitment to curating high-quality offerings – making it a useful marketing investment, too.
“There are few opportunities for producers to make more money and retain it in their supply chains and for buyers to find truly exceptional coffees that meet their needs,” David says. “Auctions offer a solution for both, helping roasters distinguish the best from the rest and allowing producers to sell their coffee with added value.
“Participation is also straightforward. It’s simple to sign up, have samples delivered, cup coffees, bid, and receive shipments. Platforms like M-Cultivo offer support every step of the way.”
The hybrid format of the Dubai Coffee Auction by DMCC, taking place on 10 & 11 February 2025, offers producers and roasters opportunities to connect either in person or virtually. The auction registration deadline is 1 February 2025, with more updates to be announced in the next few weeks.
As the industry evolves, so too do green coffee auctions. An increasingly connected international market means rising demand for differentiated coffees, pushing the auction model to become more globalised.
With the right level of support, both producers and buyers stand to benefit from this shift in format, improving their access to exceptional lots and retaining more value at the beginning of the supply chain.
Register for the Dubai Coffee Auction by DMCC, co-hosted by M-Cultivo, here.
Perfect Daily Grind
Please note: M-Cultivo is a sponsor of Perfect Daily Grind.
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