Ethiopian Coffee and the Internet
By using an Internet-based auction for the first time, Ethiopian coffee growers received more than double their usual price for coffee -- and one bid was more than triple what the growers had received in the past. The auction was sponsored by the Ecafé Foundation, a non-profit organization providing education and support for coffee-growing communities around the world. Ecafé, in turn, is supported by the Dutch trading firm Trabocca BV and the US coffee importer BD Imports.
"Because of your support, the Ecafe auction generated more than $187,000 for Ethiopian cooperative coffee at an average price of $3.22 per pound," [Ecafé President Willem] Boot wrote in a letter thanking auction bidders. [...]The highest bid received $6.50 per pound for Ethiopia's top-grade coffee from Yirgacheffe. The lowest winning bid was tendered at $1.82 per pound, Boot said.
Ethiopian coffee normally fetches an average of $1.30 a pound in normal markets .[...]
Four unions of 151 coffee cooperatives, with a total membership of 180,000 individual producers, participated in the auction with the hope of getting a better price for their product.
Ecafé has a page listing the auction results, including the bid histories.
This further underscores the argument that access to global information networks can have an enormously positive result for developing nations. We typically make the point that farmers (and fishermen, etc.) can use information tools to better follow market conditions, but this reminds us that the reverse is also true -- information networks also make global buyers aware of these local growers.