The Auction System was formed by colonizing powers in many coffee producing countries. It was designed to give governing bodies control over the industry. It is seen as very beneficial as it allowed coffee lots to be bid on by organizations or people who had a direct seat in the auction. It also allowed for a quota and taxation system to be put in place. Today these systems are no longer relevant in a liberalized world market with the fall of the International Coffee Agreement in 1989.
Because of the lengthy process of the Auction system the payment system consists of three steps. 1) Cherry advance 2) Interim payment, after auction 3) Final payment, after cooperatives accounting period. It can take about 9-12 months for farmers to receive their complete payment.
AGRO Café is currently working with AGRODEV to help educate people on the pro's and con's of an auction vs. liberalized coffee market.
Please refer to the AGRODEV related information section for downloads that discuss the Kenyan auction system in detail, as well as UBC's own Richard Damianopoulos's (one of the co-founders of AGRODEV) Thesis.
AGRO Cafe coffee is fair trade and roasted in Vancouver, BC, Canada.
Certified Organic by PACS. 16-326
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