How does Fair Trade affect different players within the coffee industry practically? This is no research paper, but in this post, I want to explore problems with fair trade, and then look at how K2 pursues economic justice on behalf of the Acehnese coffee farmers. Special thanks to T.H. for bringing up some of these issues.
First, it might be helpful to review the basic definitions of Fair Trade and Direct Trade
Fair Trade - Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. When farmers can sell on Fairtrade terms, it provides them with a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping. When a product carries the FAIRTRADE Mark it means the producers and traders have met Fairtrade Standards. The Fairtrade Standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade. (from http://www.fairtrade.net/about-fairtrade/what-is-fairtrade.html)
First, it might be helpful to review the basic definitions of Fair Trade and Direct Trade
Fair Trade - Fairtrade is an alternative approach to conventional trade and is based on a partnership between producers and consumers. When farmers can sell on Fairtrade terms, it provides them with a better deal and improved terms of trade. This allows them the opportunity to improve their lives and plan for their future. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping. When a product carries the FAIRTRADE Mark it means the producers and traders have met Fairtrade Standards. The Fairtrade Standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade. (from http://www.fairtrade.net/about-fairtrade/what-is-fairtrade.html)
Picture retrieved from
http://www.fairtrade.net/
http://www.fairtrade.net/
Direct Trade - Direct trade is a term used by coffee roasters who buy straight from the growers, cutting out both the traditional middleman buyers and sellers and also the organizations that control certifications such as Fair Trade and Bird Friendly, for example. Direct trade proponents say their model is the best because they build mutually beneficial and respectful relationships with individual producers or cooperatives in the coffee-producing countries. Some roasters do it because they are dissatisfied with the third-party certification programs, while others want to have more control over aspects ranging from the quality of the coffee, to social issues, or environmental concerns (from http://www.ethicalcoffee.net/direct.html)
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