We occasionally get questions about FairTrade. What exactly is it, and why is there no FairTrade coffee in our range? And why do we offer FarmersDirect coffee? And what is the difference between that and FairTrade?
The position of FairTrade
The aim of the FairTrade label is a very good one. It sets a minimum price for producers, establishes requirements for the working and living conditions of workers and farmers, works towards a better environment, and supports education and awareness.
To make this possible, you pay a little more for your coffee as a consumer. This money is returned to the coffee farmer via the coffee trader. Part of it also goes towards certification.
Farmers Direct
Direct trade between the coffee roaster and the coffee farmer or cooperative works towards the same goal as FairTrade, but in a less formalised way. By trading directly and bypassing unnecessary intermediaries, a larger share of the proceeds goes to the coffee farmer. This enables them to make a decent living and invest in their farm to make it more resilient in the face of climate change.
A different market
The difference between FairTrade and DirectTrade is that direct trade with coffee farmers is mostly carried out in the so-called Specialty Coffee sector. This is the market our coffee belongs to. In terms of quality, this is the best coffee on the market. To achieve this level of quality, farmers already work without pesticides and in the most natural way possible. Often, they do so with skills passed down from generation to generation.
And by focusing on this high quality, these farmers automatically receive better compensation, because coffee fetches a higher price in the Specialty Coffee market.
FairTrade is particularly important in markets where price is the dominant factor. In other words, the bulk market or supermarket sector. When the price of coffee has to be kept as low as possible for consumers, pressure throughout the supply chain to lower and maintain that price ultimately leads to farmers and workers at the start of the chain being paid too little. Too little to invest or spend extra time on quality and better working conditions. Too little to pay and train workers properly.
In this sector, the FairTrade guarantee mechanism adds value by counteracting this downward price pressure.
The same price pressure also has a negative effect on quality, which is why coffee from the bulk market is not Specialty Coffee.
FairTrade coffee also carries a certification label. This means that the label's requirements must be met and verified. The pressure this puts on farmers, and the bureaucracy involved, are not always welcomed.
Direct from the farmer
By buying directly from coffee farmers, we—and you as consumers—help produce better coffee and improve the livelihoods of coffee farmers. That is why we aim to include more Farmers Direct coffee in our range.
We do this not only for our so-called Single Estates—coffees from a single farm or cooperative—but also for our blends, which increasingly include coffees sourced through direct trade. We hope that before long we will be able to source all our coffee directly from farmers.
Great examples of Farmers Direct coffees are our Colombia from Isnos and the new Premium Microlots from Nicaragua. The latter are produced by a group of Nicaraguan farmers who are actively fighting poverty by working together to produce exceptional coffee for a very select market. This is only possible in very small quantities, but at a fair price.
- Photo above: Don Pedro Lopez Mendez, Huehuetanango, Guatemala.
- Photo below: coffee farmers and workers, Los Melizos, Peru.
