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What Is Direct Trade Agreement

December 20th, 2020 in by admin

Why is fair trade so popular? The more people become aware of the problems in developing countries and the problems posed by unethical business practices, the more people become aware of where they are spending their money. Consumers have the power to make positive change through their purchasing decisions, because if more people support fair trade coffee brands, companies are driven to adopt ethical business practices. By providing farmers with fair wages, banning child labour and imposing sustainable rules, fair trade associations are encouraging healthier and happier lifestyles for communities in developing countries. There are others, such as Dean`s Beans, a Massachusetts roaster whose founder is not reluctant to tell you that he is a former environmental lawyer. In fact, he is not at all reluctant. Dean`s Beans is pretty confident when it comes to promoting itself by going beyond fair trade standards and selling only organic coffee and only fair trade coffee, as Dean`s Beans defines fair trade. Dean`s says its standards for producers are even better than other certifications. Melanie Leeson, who was Director of Marketing and Collaborative Development Coffee Source at the time of our interview, tells me: “The term “direct trade” does not really describe what is happening in the industry. Direct trade must be a one-for-one relationship. Special coffee sometimes has to go through dry mills, washing stations, and establishing a direct relationship can be easier said than done. While direct trade labels and stories help roasters sell their coffee, it does not devalue the impact they can have on the supply chain. In fact, if done right, they can lead consumers to learn more about the communities that make the coffee they drink and demand more transparency and sustainability. Fair trade is a movement that encourages fair payment and ethical treatment of producer groups in developing countries when exporting their products to industrialized countries.

It is governed by a set of standards established by non-profit fair trade associations in third countries that certify companies that adhere to the 10 principles of fair trade. While fair trade focuses on improving people`s lives, coffee produced under fair trading conditions is often of better quality than standard trading alternatives.

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