Fair Trade VS Direct Trade: Which Is the Fairest of Them All?
There we are, going about our shopping trip, merrily scanning every bag of coffee for that all important blue-and-green Fair Trade stamp. Ahh, there it is, our proof of ethically sourced, child-labour-free, sustainable coffee. Or… Is it?
Fair Trade Coffee sure has set a bench mark in the coffee industry, in terms of standards, ethical practice as well as conscious consumerism. But is Fair Trade all it’s cracke3d up to be – opr are we falling victim to a ploy – making us believe we are supporting a worthwhile cause?
Fair Trade Coffee
Let’s start at the beginning; the very definition of Fair Trade coffee- as per Wikipedia itself:
“Fair trade coffee is coffee that is certified as having been produced to fair trade standards.
Fair trade organizations create trading partnerships that are based on dialogue, transparency and respect, that seeks greater equity in international trade. These partnerships contribute to sustainable development by offering better trading conditions to coffee bean farmers. Fair trade organizations are engaged actively in supporting producers and sustainable environmental farming practices. Fair trade practices prohibit child or forced labor.”
All fair and well – and it sounds rather promising and comforting.
Let’s have a look at Direct Trade:
Direct Trade Coffee
Again, sourced directly from Wikipedia:
“Direct trade is a form of sourcing practiced by some coffee roasters, referring to direct sourcing from farmers, with standards varying between producers.[1][2] Direct trade is seen as an alternative to Fairtrade certification,[3] and represents the interests of roasters who disagreed with elements of Fair Trade, including:
the lack of increase in Fair Trade premiums paid to farmers;
the lack of what the direct trade advocates perceived as a sufficient quality-incentive for farmers;
the limits on Fair Trade participation (i.e., individual farms cannot be certified unless part of a cooperative, and plantations and estates are not allowed to join cooperatives);
the fees involved in being a participating Fair Trade company (e.g. fees, dues, and surcharges).”
Fair Trade VS Direct Trade
Boom! In it’s very definition, we can see why Direct Trade was a) created and b) has a much fairer and rounded approach to the initial goals set out in the creation of Fair Trade.
If this is all still a bit confusing – let’s put it into real life scenarios.
A Fair Trade coffee bean farmer enjoys the benefits of the certification; many companies simply refuse to make use of a coffee bean brand unless it has official accreditation to the Fair Trade organisation. To be part of this elite circle – the coffee bean farmer has (at his own expense – financially and in terms of time) – undergone rigorous requirements.
The farmer must form part of a cooperative; this has many loopholes, as outlined in the definition of Direct Trade, such as the exclusion of plantations and estates.
The farmer must pay a set fee to the Fair Trade organisation – a premium that increases without prior notice. This very same coffee bean farmer must adhere to the stringent rules and regulations of Fair Trade guidelines – including exclusive use of grinders (when selling ground coffee) – dedicated solely to his Fair Trade coffee beans, amongst many other set rules. I’m not sure exactly how this is audited – but the rules are quite strict – understandably.
The real problem comes into play when the coffee bean farmer whop has worked tirelessly to yield a good, or sometimes not-so-good crop, must now be content with receiving the same stipend / payment he or she has been receiving, although the premiums paid to the Fair Trade organisation have increased – sometimes exponentially.
The farmers are covered against certain occurrences, and have adhered to stringent rules – but rarely see a true benefit from the certification.
Fair Trade may very well be making more of a profit than a difference to the lives of coffee bean farmers – and this is what it boils down to:
The advocacy of promoting human rights, the probation of forced or child labour – really, the morally and ethically correct practices for any producer to follow – yet seem to spite the very farmers they claim to be protecting.
Inversely, Direct Trade is the alternative. This type of trade is encouraged by many coffee bean farmers- it promotes a good relationship between the farmer and the reseller / consumer. Often, relationships are formed between these two parties that rely solely on fir practices outlined in Fair Trade regulations – but the farmer sees real benefits at the end of the month.
The only problem is that there is no regulatory board for Direct Trade coffee – which is also understandable. The Direct Trade Coffee Club is an initiative which promotes and oversees the facilitation of Direct Trade coffee, and you can read more about them, here or here.
For a visual summary of the differences between Direct and Fair Trade, check out this handy infographic!
H/t to Tree Huggers.com!

So, what now?
There’s no getting away from Fair Trade just yet, but if you want to make a personal effort, start having a look at the back of your coffee bean packet; keep an eye out for the terms “Direct Fair Trade” or “Direct Trade” – or membership to the DTCC (Direct Trade Coffee Club). There are numerous images associated with Direct Trade, some examples below:
It starts and ends with consumers – and as they say – “the more you know…”
Share your thoughts and opinions below!