What is Direct Trade?
Direct trade is part of the Fair Trade movement that promotes equitable pay and ethical treatment of producers from developing countries who supply goods to developed countries. The main difference being direct trade deals, as the name implies, directly with the farmers instead of a third-party organization.
Ten benefits of direct trade coffee:
- No Fair Trade licensing fees
- The Fair Trade Foundation doesn’t take a cut of the profits
- Revenue from sales goes directly to the farmer and not through a co-operative
- Prices are flexible and agreed upon by the farmers and the buyers
- Ensures the farmers get paid a fair wage despite the market fluctuations in the buyer’s country
- Increased demand encourages higher quality crops
- Producing higher quality crops can be an incentive for farmers
- Opportunity for the buyer to invest in the farm
- Benefits the farmer’s community (e.g., employment opportunities, promotes consumer spending)
- Chance to build professional one-on-one relationships with the farmers
Now, go out and impress people with your random coffee knowledge! And as always, thank you for reading and joining me on this #internationalcoffeejourney