Wednesday, September 23, 2015

Fair Trade vs Direct Trade

One of the most frequently asked questions I get is: What is the difference between Fair Trade and Direct Trade? Fairtrade America explains :

Fairtrade is a global system that adheres to rigorous, internationally agreed standards to ensure that the most vulnerable farmers and workers are empowered to improve their own lives. By choosing products that bear the FAIRTRADE Mark, you have an independent verification that the claims made by the company selling that product are grounded in concrete evidence.
     
Direct trade mainly is used in reference to coffee and implies a direct relationship between the farmer and the company (usually a coffee roaster). Direct trade and its principles of getting to know and appreciate farmers more is something that we applaud. However, there is no way to verify if a company/roaster’s claims of fair prices and good treatment are correct other than their own word.
     
Furthermore, although some roasters may deal directly with farmers they still rely on intermediaries like exporters and importers. Therefore, there are still multiple links in their supply chain.


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