Auction is another coffee marketing channel through which coffee gets traded in a form of green beans. This channel allows coffee estates and cooperatives to present their coffees for sale via electronic coffee auctions. Coffees are sold in auctions as per samples presented to the buyers with the physical consignments stored in different licensed warehouses across the country.
In the 2018/19 season, coffee auctions went through a major transformation following a resolution that resulted in the country’s establishment of Zonal Coffee Auctions in addition to the previously centralized coffee auction in Moshi. The move aimed to reduce transactional costs, increase market transparency, and attract more buyers, hence boosting competition that often results in competitive coffee prices accruing to the farmers