By Dan Bolton
Dealing direct describes a business relationship in which roasters meet individual growers face to face, exchange cash and bypass brokers and import/export agents.
That is rare for any transaction involving more than three kilos of coffee.
Direct sourcing involves jointly determining the quality of the coffee with growers and then negotiating a price. Importers do the rest. In some coffee regions, the relationship may be with a cooperative, or a processor operating a washing station. Transparency is a key element. Purchasing direct from a cooperative that does not have the ability to segment its coffee cannot be considered direct trade.
ALSO: Direct Sourcing: Dealing with the Details
The intent is to enhance green coffee quality through a regular and constructive exchange that includes travel to origin. Ideally, coffee that is directly sourced is responsibly grown and ethically traded. Growers are encouraged to manage waste, protect water quality, conserve energy, reduce agrochemical use, and preserve biodiversity. Direct sourcing may circumvent third-party certifiers but that is not the goal. In many instances, alternates such as the coffee and farmer equity (C.A.F.E) practices established by Starbucks rely on third-party verifiers to determine compliance with regulations such as minimum-wage, child-labor (and forced labor) and discrimination.
Nespresso’s AAA sustainable quality program, founded in 2003 and serving 70,000 farmers in 12 countries, is another example. The program is administered in cooperation with the Rainforest Alliance to address systematic risks within the coffee supply chain.
Here is a summary of key aspects of direct trade gleaned from Wikipedia and other sources:
• Paying higher premiums to farmers than those mandated by fair trade;
• Tying these premiums to specific quality standards that create a sustainable economic rationale for higher prices;
• Allowing participation by individual farmers and processors, regardless of size or membership in a cooperative;
• Generating additional supply chain trust and transparency through personal relationships, price negotiation, and information sharing.
Done well sourcing direct empowers producers and delivers roasters consistently high-quality coffee.