Contracts fail, miscommunications, unscrupulous merchants, imprecise information… There are many problems that can arise when two small businesses participate in the generally unregulated trade. “Direct trade undoubtedly provides a virtuous circle in which the revenue generated can be reinvested, not only in optimizing an efficient production model, but also in improving the quality of life of all companies involved in the supply chain.” I have spoken with a number of industry leaders to hear their views on this issue. Here`s what they had to say. Goods shipped from the Country A Free Trade Agreement are unloaded and unpacked from the shipping container to country B non-FTA. They remain under customs control and are repackaged and loaded into a smaller container and shipped to the destination country, the country of EsTV C. In such a scenario, goods are in line with the principle of direct delivery, although customs authorities in the importing country may still require proof of goods issued by the customs authorities of the transit country. Direct coffee sale by El Roble, Huila, Colombia. Credit: Right Side Coffee Third Wave Coffee culture is all about understanding the origin of a coffee and its impact on the cup – and direct trading makes it even easier for consumers to listen to the words of producers and know their hard work. Melanie, based on her experience in buying green beans, agrees. “It has a huge impact. It gives producers a sense of empowerment.
If the producer`s neighbours see success, they want to be a part of it. This is how the Netherlands decided to start certifying fair trade. It artificially increased the price of coffee in order to provide producers with sufficient wages. That`s all. Unlike the usual coffee supply chain, we cut all unnecessary steps. There are no other players – such as raw material dealers or distributors – always a piece of cake. Instead, we pay farmers directly, with 25-125% through fair trade rates. This means they can grow their farms, improve their quality of life and continue to produce better coffees for us. Fair trade in its current form began in response to the coffee crisis in 1988.
There were no price quotas, so the supply of coffee far exceeded demand. In Laos, farmers often sell coffee as a cherry or Pulped Cherry rather than as processed green beans. In Rwanda or Burundi, for example, many producers will use the same washing station. In these situations, direct trade is difficult to define and may even be impossible.