Are Direct Trade and Fair Trade really fair?
Expressions Often fair trade (Fair Trade) and direct trade (Direct Trade) are used interchangeably and think that it is like. There are aspects that apply to both groups. To promote environmental protection, labor, economic and social sustainability for workers and prices that should exceed production costs.
The “Fair Trade” is based on a democratic structure; cooperatives, associations and institutions our coffee, brings together producers who are offered services if they meet the codes of conduct of the seals, mainly sustainability. Your certified coffee receives minimum premium, quality is not essential or receive feedback on it, have no contact with their customers and there is no relationship between the members of the chain.Companies manage the entire operation and high-quality coffee here is to whom the producer has generated value is not returned to the source. The stamps in this segment have not released the communities of poverty and is a model highly questioned in international publications by the lack of two – way transparency between producers and consumers.
The “Direct Trade” with organized communities or farms, is based on the quality ;buyers know the origins and establish collaborative relationships with producers. The transaction is done directly with them and the price range far exceeds the “Fair Trade”. This structure encourages quality improvement is based on mutual respect and trust, long – term relationship that satisfies the effort financially, enabling economic, family and social stability. Prices are agreed between the parties, not imposed by an outside organization and the business relationship is adapted to each producer for model flexibility which ensure transparency and inclusiveness. But beware !, many companies new specialty coffee buyers disguising their business model “Direct Trade” being more of the same.
The two models have significant flaws. The “Fair Trade” is not transparent with what is paid to producers, incentives are reinvested in communities of low social and economic impact. The difference between fair and conventional trade is minimal but are so powerful that in a few years can not be sold coffee is not certified.Impoverished producers are commercial instrument. Buying certified coffee once in his power, changes category and becomes source.
The “Direct Trade” also has flaws, mainly operates with few farms or associations.Perceived resources contribute to improving infrastructure and crops each producer and makes it sustainable by price. The social impact is limited, roasters buy at thediscretion and is a model restricted to small groups of producers in the world.
The ideal is a model that blends the two: Direct trade including more producers with quality that allows them to access markets high value and fair trade working in communities to improve quality. The implementation of direct trade to wider communities is our main goal. Our Federation must work to ensure that production and trade patterns capture the value for the producer. It is very frustrating to see how our valuable institutions, financed our contribution coffee and the state, on the one hand encourages the production of high quality coffee, but on the other follows the commercial game certifiers companies with “our cooperatives” (a . which also contribute) collecting as if they were your purchasing department without investing one US dollar the generic use of the term “Fair Trade” deserves critical and ethical analysis; these powerful organizations manipulate the specialty coffee market at will in a contemptuous attitude with the union and insignificant impact on poverty.
The real “Fair Trade” is the “Direct Trade”.
Originally posted on LaPatria.com.