Foreign bidding club observation

#1: Post by **chang00** » April 5th, 2011, 12:23 am

With the concern and discussion about who is paying for premiumly priced coffee, recently I read about bidding clubs in an Asian coffee forum.

This is the final price and winning bidders for the Best of Panama and Esmeralda Special 2010. It is interesting to see the final destinations of the auctioned coffees:

http://auction.stoneworks.com/pa2010/final_results.html
http://auction.stoneworks.com/es2010/final_results.html

There is currently at least one organization of small, or "microscopic" commercial roasters, who get together to bid. From reading, some hobbyist individuals are joining because the minimum is only 25 pounds.

Perhaps this could be one of the reasons why specialty coffee greens are increasing in price (personally I think QE2 is the culprit). On a completely unrelated commodity, the Pacific Northwest dungeoness crab, price has reached at least $7.99 at local market, despite record harvest, due to increased demand in other parts of the world.

#2: Post by **SlowRain** » April 5th, 2011, 3:16 am

What is QE2, and how is it responsible for increasing the price of coffee? The closest I could come up with is Queen Elizabeth II, and she seems like such a sweet little lady that I don't know why she'd do something so horrible as deny the common man a good cup of coffee at a decent price.

What can you tell me about these bidding clubs and hobbyist participation in Asia? Twenty-five pounds is probably something I could tuck away in our little apartment.

#3: Post by **michaelbenis** » April 5th, 2011, 9:02 am

QE2 also = Quantitative Easing 2

Can't tell you about the bidding clubs.

if it's the farmers getting higher prices, that would be nice.... sadly, I doubt it....

#4: Post by **SlowRain** » April 5th, 2011, 10:21 am

Thanks. That "2" seems superfluous, but that's the media for you.

#5: Post by HB » April 5th, 2011, 11:03 am

With apologies for prolonging this off-topic discussion: "The expression 'QE2' has become a "ubiquitous nickname" in 2010, usually used to refer to a second round of quantitative easing by central banks." (Quantitative easing on wikipedia)

#6: Post by **SlowRain** » April 5th, 2011, 11:59 am

I just think the "2" is over dramatic. Perhaps in 2020 we'll be at QE6.

#7: Post by **another_jim** » April 5th, 2011, 1:34 pm

Bidding clubs consisting of US 3rd wave roasters, and sometimes Sweet Marias, also take part in the auctions. I don't think amateurs have ever participated.

Ken Fox is ready to start a volume buying club for greens from importers, we already have the coop and several other buying clubs, and both of the super-premium importers, Cafe Imports and 90-plus, who have a seat at the auctions, are willing to sell single bags to amateurs, but not to subdivide them further. So there is nothing to stop us combining for auctions and other super-premium lots here ...

... Except the work ...

It's a ballpark of 50 to 100 bags of coffee annually, subdivided into labelled ten pound bags, possibly stored frozen for indefinite periods, and sent USPS. The time required to do all this makes it a substantial part-time job, and whoever did it would need to get paid at least a couple of dollars per pound. So, the best approach might be to coordinate it through an organization that already exists. Sweet Marias or maybe the coop (if they'd pay the subdividers, to make the transactions fair, and thereby ensure more regular sales).