What are the trading modes of coffee beans? How to do a fair trade auction of raw coffee beans? Direct trade?

James Hoffman writes in his book that coffee trade is mainly divided into four modes: partnership coffee, direct trade, fair trading model, and auction coffee.

The specific differences between these four modes of coffee trading can actually be known through their names, but Qianjie is here to learn about the details of these patterns.

Partnership Coffee:

It means that coffee roasters buy coffee directly from small-scale coffee farmers and maintain a long-term trading relationship with producers. Small farmers' organizations have never been prompted to import high-quality organic raw coffee and long-term relationships have been established and fair and just trade practices have been promoted. The goal is to make coffee cultivation a sustainable and beneficial effort for farmers' families and communities.

Cooperative Coffee is dedicated to:

Booming import business-in the eyes of our trading partners, our terms of trade are the best choice, and our business practices are defined, documented and disseminated as a model for the coffee industry.

Prosperous communities-We understand the basic needs of our trading partners and promote access to specific expertise to help smallholder farmers increase their productive capacity and meet their basic needs. We measure not only the economic impact of our relationship, but also the overall quality of life of our partners and their communities.

Fair sale of coffee:

The structure of coffee trade in North America, Western Europe and Japan is very similar. Coffee is usually purchased by international trading companies, distributors and traders from exporting countries. Europe's largest roasters also have their own internal procurement companies that deal directly with the country of origin. In general, however, roasters tend to buy coffee from international trading companies or professional import agents representing specific exporters in the producing country. International trade plays a vital role in the global marketing and distribution of coffee.

Direct trade:

Coffee roasters communicate directly with coffee producers, not through the direct relationship of importers. Contact the manufacturer directly and ask for samples of raw coffee beans. Of course, there are real-world opportunities to make connections, such as local cup testing, auctions, or events created specifically to connect bakers and producers. It is worth noting that many roasters want to provide a range of coffee from different places. It's impossible to work with only one producer. Therefore, it is best to use a direct trade relationship as part of a procurement strategy rather than using it to meet all your needs.

Auction coffee:

The boutique coffee auction is an excellent forum for promoting high-quality coffee. They also promote direct relationships between producers and buyers and usually ensure that farmers receive good harvest prices. Coffee auctions have been used for centuries and are still a popular way to trade raw coffee beans. They are also sometimes used to display high-quality coffee. In Latin America, auctions are most commonly used to sell boutique coffee. In most African countries, auctions are run by governments and are the main way of trading commercial coffee. But in recent years, some professional auctions have also taken place in Africa. For example, in 2020, COE came and brought it to Ethiopia.