An Online Coffee Trading Platform Making the Industry Sustainable

 
　The production of coffee—one of the most widely beloved drinks in the world—is concentrated in relatively low-income countries, where it constitutes a significant portion of export earnings. Since 2000, the coffee market has been growing rapidly, driven by increased consumption in emerging economies and a rising preference for higher quality in developed countries. Despite that, coffee producers say their livelihoods are unstable. Why is that happening?

　In response to that question, entrepreneur GOTO Masashi explained, “There’s a power imbalance between sellers and buyers. Also, the futures market, where the price of coffee is set, fails to achieve fair pricing.” He went on, “With the internet connecting 5.4 billion people through digital devices, we should be able to create a model where producers and roasters can negotiate directly, determine their own prices, and maintain stable, long-term trading relationships.”

　With that vision in mind, Goto launched TYPICA in 2019 as the world’s first global online platform for the direct trade of green coffee beans. The online service facilitates direct trading between smallholder producers and roasters by allowing transactions as small as a single jute bag of green coffee beans, rather than the conventional unit of container load quantities.
 

 
　TYPICA co-founder YAMADA Ayane, with her extensive experience in the coffee industry, also shares a desire to transform the sector. She said, “When the third-wave coffee movement, with its emphasis on bean quality, supply chain transparency, and fine roasting and brewing, came to Japan, people successfully replicated the coffee flavors and store designs. But they failed to grasp the core principles, and the movement seemed to become a hollow imitation. Many consumers, and even roasters, were not concerned about where their coffee was coming from. They were also oblivious to the fact that climate change is reducing the number and size of the areas suitable for growing coffee. I personally did not feel comfortable with that.”

　Goto and Yamada focus on the uniqueness, freshness, transparency, and narratives of coffee beans. To meet those four criteria, TYPICA ensures traceability and rigorously screens all its beans before listing them. In addition to visualizing the distribution channel—from harvest to green bean processing, and to delivery at roasteries—TYPICA also provides a detailed breakdown of costs at each stage, including the fees that it takes. All the information on production and distribution also weaves into a narrative of the beans, along with the producer’s aspirations and background. And thanks to direct trading in quantities down to single 60-kg jute bags, it is possible to buy and sell fresh and unique beans that hadn’t always been available on the open market.
 

 
　Nearly five years after its founding, TYPICA has established operations in five locations worldwide: Japan, Taiwan, the Republic of Korea, the Netherlands, and the United States. Its user network now spans producers in 36 countries and roasters in 40 countries. Unlike conventional market trading, TYPICA’s platform has revolutionized the coffee industry by allowing producers to set their own selling prices. Being able to trade at higher prices than in the past has encouraged farmers to grow higher quality beans, which has boosted their income by more than 2.2 times on average. And with an eye on further improving sustainability, TYPICA will soon be able to increase transparency about greenhouse gas emissions throughout the entire supply chain.