We reject these secret and exploitable business practices, and we know that all those with a big heart would feel the same. The acceptance of this trading mechanism is that the roaster gives more value to the producer. However, there is concern that the more we talk about the term “direct trade”, the more popular it becomes and, as we know from other slogans, it can easily lead to greenwashing. The last thing we want is for roasters to exploit producers just to reap the rewards of being known as direct trade roasters. In other words, the processing of meetings with producers such as holidays and the ability to take a lot of images for social media will not benefit your business in the long run and will certainly not benefit producers in those regions. We repeat this feeling A LOT; but as entrepreneurs, we should think about the real value we bring to our customers and all stakeholders in our supply chain. There are doubts about achieving the objectives of transparency and integrity of direct trade. In the absence of a clear definition, there is nothing to prevent a roaster from buying directly from a farm that does not pay a sustainable wage to its workers. Many questioned whether the direct business model was sufficient to address institutional poverty and inequality in producing countries.
A roaster can characterize direct coffee trading based on the relationship between the broker and the farm, instead of the roaster and the farm. As has already been said, direct trade has been developed to improve the increasingly confusing fair trade system. Instead of a certain regulatory framework, direct distributors opt for a more open and mutually beneficial form of trade. “The main problem with direct trade with the roaster is that you`re at risk if the product you want to buy isn`t what you want,” Says Garrett. “If there is a loss of quality or an experience is not what you want, you could be financially in financial danger. That`s why we offer not to enter into a direct business relationship if you don`t have the financial means to engage. The main problem with direct trade is that it relies exclusively on the ethics and honesty of traders. Thus, sometimes large roasting companies use the system and use the term without the expected transparency. However, coffees move in various ways between producers and roasters, one of which is “direct trade.” Original direct distributors, including Intelligentsia coffee roasters and tea, Stumptown Coffee Roasters, Counter Culture Coffee and chocolate manufacturers Taza Chocolate and Askinosie Chocolate have tried to counter perceived misrepresentations of direct trade[16][17][17][18] Counter Culture Coffee and Taza Chocolate have pioneered transparency`s annual reports for the coffee and artisanal chocolate industry[19][20] and each has reviewed each year its direct business practices by an independent third party. [21] Whether these and other efforts to ensure the integrity of direct trade will be successful is the subject of ongoing debate.
[22] [23] A company in the United Kingdom that implements Direct Trade Kaffee under the Farm Direct banner is Ethical Addictions. [24] Why is fair trade so popular? The more people become aware of the problems in developing countries and the problems posed by unethical business practices, the more people become aware of where they are spending their money.