One of the most consumed beverages worldwide is coffee, and coffee beans are one of the most traded goods worldwide. However, the production of coffee is not always equitable, and growers frequently are paid little for their beans. Fair trade coffee has long been a preferred option, but direct trade coffee is becoming more and more popular as a superior substitute. In what ways is direct trade coffee superior to fair trade coffee?
A direct connection between coffee roasters and farmers is what is meant by the term “direct trade” coffee. Companies that sell direct trade coffee pay more for coffee beans than those that sell fair trade coffee, and they collaborate closely with farmers to raise the quality of the coffee and make sure they are paid fairly for their beans. More openness in the supply chain is provided by direct trade coffee, allowing customers to know exactly where their coffee originates from and how it was made.
The certification process for fair trade coffee, on the other hand, strives to guarantee that coffee is produced ethically and that farmers earn a minimum price for their beans. However, fair trade coffee has come under fire for lacking sufficient supply chain transparency and failing to consistently guarantee that farmers are paid fairly for their beans. Additionally, fair trade coffee frequently uses middlemen, including cooperatives, which might lower the price paid to farmers for their beans.
While direct trade coffee has a number of advantages over fair trade coffee, fair trade coffee has helped to improve the lives of many coffee growers. Because direct trade coffee firms may pay more for coffee beans, farmers are incentivized to produce higher-quality coffee. Additionally, direct trade coffee firms work closely with farmers to enhance their agricultural techniques, which can result in more ecologically friendly and sustainably produced coffee.
The answer to the question of who owns the coffee business is complicated. Coffee farmers, roasters, coffee shops, and customers are just a few of the many actors in the coffee industry. However, the sector is heavily influenced by big, multinational companies like Nestle and Starbucks, who frequently put their own financial interests ahead of the welfare of coffee farmers.
Last but not least, Peet’s Coffee was established in Berkeley, California, in 1966, and since then it has expanded to become a well-known coffee chain with stores all around the country. The German multinational Joh. A. Benckiser, which also owns a number of other coffee companies, including Keurig Green Mountain and Caribou Coffee, acquired Peet’s in 2012. Despite the ownership transition, Peet’s is committed to procuring premium coffee beans and encouraging environmentally friendly coffee manufacturing.
Starbucks has worked to ethically source its coffee by putting into place a program called “C.A.F.E. Practices” (Coffee and Farmer Equity Practices), which stands for Coffee and Farmer Equity Practices. For coffee farmers, this program contains recommendations for social, economic, and environmental practices. The program’s requirements, according to some detractors, are not stringent enough, and Starbucks might take additional steps to promote small-scale growers and guarantee fair prices for its coffee. In the end, your personal values and criteria for ethical sourcing may determine whether or not you think Starbucks is ethically sourced.
Yes, Starbucks has more than 30,000 stores worldwide, making it the biggest coffee chain at the moment. The “The Advantages of Direct Trade Coffee” article, on the other hand, concentrates on a different facet of the coffee market, namely the advantages of buying coffee directly from growers as opposed to through middlemen traders or brokers.