Direct Trade : A More Equitable Cup of Coffee?

Abstract

According to Fair Trade Labeling Organization International, annual Fair Trade and ethical products sales exceed $1 billion (Fair Trade International 2014). Fair Trade certified products promise higher prices and increased incomes for coffee farmers. However, Fair Trade has fallen short of expectations due to high participation costs, lower than anticipated income to farmers, and at times, lower quality coffee (Haight, 2011). To address these shortcomings, Direct Trade has emerged as a new strategy. Direct Trade connects coffee farmers to coffee roasters to ensure higher prices for farmers and higher quality coffee to consumers. As a relatively new model, few studies have examined how Direct Trade is implemented. This research characterizes Direct Trade as described and implemented by De la Gente.