What is Direct Trade and why is it considered fairer?
The roastery buys directly from the producer—without middlemen. This allows a larger share to reach the farmer, often multiples of the Fairtrade minimum price. However: Direct Trade is not a protected term, anyone can use it.
Why that is
The traditional coffee trade has many stops: farmer → middleman → exporter → importer → green coffee trader → roastery. At each step, someone takes a margin—and the farmer at the beginning of the chain often only gets a fraction of the final price.
How Direct Trade works:
- The roastery visits the farm or cooperative in person.
- Quality is evaluated together and a price is agreed upon—usually well above the world market price.
- Long-term relationships are formed: the roastery buys from the same producer for years.
- Feedback flows back: the roastery tells the farmer what is working well and what can be improved.
Price comparison:
| Price per pound (approx.) | |
|---|---|
| World market price (C-Price) | highly volatile (exchange price) |
| Fairtrade minimum price | 1.80 USD |
| Direct Trade (Specialty) | 3.00–8.00 USD |
| Micro-lot / Auction coffee | 10–50+ USD |
Why it's considered fairer:
- More money for the farmer—the middlemen's margins are eliminated.
- Quality incentive: better quality = higher price. This motivates farmers to invest in processing and cultivation.
- Planning security through long-term partnerships.
- Knowledge transfer in both directions.
Criticism of Direct Trade:
- Not a protected term. There is no independent certification. A roastery that visited a farm once can print "Direct Trade" on their bags.
- Not scalable. Personal farm visits and direct negotiations are time-consuming—only larger or very dedicated roasteries can manage the effort.
- No minimum standards. Unlike Fairtrade, there are no binding social or environmental standards.
- Transparency problem. Without an audit, the consumer cannot verify whether the roastery actually pays fairly.
In practice at Green Wall Coffee
At Sophienstraße 27, we don't buy directly from farms but from specialty roasteries. Transparency is key: a roastery that says "Direct Trade" should be able to name the farm, region and price.
Stop by Sophienstraße 27 in Berlin-Lichtenberg — Mon–Fri 8am–5pm, Sat 10am–5pm.
Further reading
Related questions:
- Who is the SCA (Specialty Coffee Association)?
- What is cupping and how does it work?
- 'What do 'Tasting Notes' on a coffee bag mean?'
Also relevant:
- Do coffee farmers really make money from the coffee price? — Sustainability & Ethics
- Which coffee certifications are really meaningful? — Sustainability & Ethics
All questions in this topic: Specialty Coffee & Industry