Firstly, What Is Fair Trade?
Fair Trade USA is a non-profit organization that aims to improve the lives of all types of farmers around the world. For a coffee farm to receive the official Fair Trade Certification, it must adhere to highly regulated standards.
- They must pay their workers a fair, living wage.
- They must employ strategies for environmental sustainability on the property.
- They must adopt healthy, ethical business practices.
Every farm, region, and country has different struggles, and every farm has to comply in different ways to reach the standards of the certification. As a result, these coffee producers are able to sell their coffee beans at a higher price, since the rigorous certification can prove that their business pays fairly and treats the environment well.
A very small cut also goes to Fair Trade USA. The organisation employs development professionals who delegate funds responsibly to community needs, such as medical clinics, schools, and local democratic councils.
Fair Trade efforts have positively changed the lives of millions of coffee farmers. However, there is one big thing that Fair Trade does not have - high standards for: The quality of the coffee. The organisation is working to introduce a layer that incorporates coffee quality, but those standards won’t be fully implemented for a couple years.
Also, there is still a middleman exporter who collects a large chunk of the possible profits. Sadly, this reduces the final cut to the farmers by a mild percentage.
Next, What Is Direct Trade?
Direct trade is a very different approach to coffee sourcing. Instead of approaching importers who buy coffees (Fair Trade and not) from around the world, direct trade roasters work out deals with farmers directly.
This allows these roasters to develop relationships with farmers, rather than buying through a huge catalog. A middleman or two, therefore, is bypassed.
Farmers are often paid very well for their crops when they trade directly, especially if their coffee is of great quality.
The goal is always this: find the best coffees, develop long-standing relationships, and pay an empowering price that benefits the community.
But here’s where the issue comes in: there’s little to no standardisation. And, thus, there’s little to no accountability.
One roaster’s direct trade may be very different than the next roaster’s direct trade. One roaster may physically go to the farm and shake the producer’s hand. One roaster may buy a coffee from an arbiter who went to the farm.
Personally, I believe the purest form of direct trade occurs when a sourcing representative from a roasting company meets with the closest possible representative from a farm.
In most countries, this means driving to the farm and meeting the farmer. In a few countries, it means contacting a farming co-op (roasters cannot buy directly from farmers in Ethiopia).
Look across our roasters websites to view more info on how they work directly with coffee farmers.
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