Winner-takes-all no more: radical transparency for sustainable specialty coffee value chains

Abstract

PurposeThe paper aims to understand the role of sensory quality scoring used at the competition auctions on pricing outcomes and how the auction process could be improved to increase sustainability in the specialty coffee market.Design/methodology/approachThe authors build a conceptual model explaining the potential role of sensory quality scoring in generating inequitable outcomes in specialty coffee auctions. The authors' research is exploratory. The authors base the propositions on the findings of the extant literature and our analysis of data from 24 Best of Panama (BOP) Auctions that took place between 2017 and 2021.FindingsA striking feature in recent BOP Auctions is a winner-takes-all (WTA) outcome. The authors also document the presence of significant price inversion. The authors attribute these outcomes to the interactions of information-poor producers, information-rich intermediaries and conspicuous consumers in competition auctions, where the product quality measurement is highly unreliable.Research limitations/implicationsData need to be gathered more broadly to enable the operationalization of the current propositions into testable hypotheses.Social implicationsThese strategies intend to provide guidelines for producers, consumers and other value chain participants on creating equitable solutions to a thriving industry where a WTA phenomenon occurs.Originality/valueThe current study is the first to argue that existing quality scoring practices, as well as conspicuous consumption, contribute to the inequities. Finally, the study proposes novel interventions to standardize the quality grading protocols and communicate them transparently to both producers and consumers.

Envisioning digitalised value chains in the aftermath of COVID-19: a case study of Philippine coffee

“…Other than those who are affiliated with organised retail groups, most of these operators are not adept at technology so being directly involved with online auctions can be complicated. As many of these small businesses have been highly dependent in the past on manual trading processes, the addition of another layer to the existing distribution channels are likely to incur higher prices, where such functions are often outsourced with commissions (Marcus et al ., 2022).…”

Sustainability marketing strategies for the energy sector: Trends, challenges, and future directions

“…Energy companies increasingly disclose their environmental impact through sustainability reports and carbon disclosures, providing stakeholders with insights into their operations, energy use, and greenhouse gas emissions. This transparency builds trust and accountability, enhancing the company's reputation and stakeholder relations [62][63][64][65][66][67] . Consumer engagement and education play a significant role in sustainable marketing efforts.…”

Influencia de la inclusión del café de especialidad en el desempeño exportador de la región Amazónica en el periodo del 2018 al 2021

“…La puntuación obtenida en cada ronda determina si el café es apto para pasar a la siguiente ronda. En la etapa final, el café pasa por un proceso de selección, clasificación, calificación y se procede a vender en subastas internacionales en línea (Marcus et al, 2022).…”

“…En sintonía con lo anteriormente mencionado, existen eventos relacionados al café de especialidad como la taza de excelencia de Panamá, en el cual se subasta el café de Pág. 89 acuerdo con la calidad que desarrolla y es evaluada mediante el puntaje en taza, menciona el autor que variedades de semillas como la geisha han obtenido el más alto puntaje en la competencia del año 2019 siendo este de 95.25 puntos en taza y obteniendo un valor por libra de $1,029 (Marcus et al, 2022).…”