When coffee first arrived in Europe, enjoying this luxury good was reserved for a select few. Today, according to statistics, about 72% of Germans drink coffee daily. The annual per capita consumption averages 162 liters. When a luxury good develops into a mass commodity, this often brings both positive and negative changes for producers, consumers, and intermediaries. In many cases, price wars ensue, which compromises quality and adversely affects the people who are indispensable for coffee production.
The winners of such a development are therefore the consumers, who pay ever lower prices for their coffee. One might assume that traders and intermediaries have to accept losses to realize the market price. Unfortunately, however, it is usually those who work on farms in the cultivating countries. They have to cut costs to achieve prices that threaten their livelihoods – threatening because these cost savings often fall back on the workers themselves.
Over 1 billion people earn less than $1.25 per day for their hard physical labor.
In recent years, the debate about poor conditions in cultivating countries has gained public attention. Consumers are increasingly valuing fair-trade, sustainable coffee. To inform consumers about fairness in cultivation and trade, specific labels have been developed.
Fair Trade Labels for more Fairness?
Labels are intended to inform consumers about fairness in trade and working conditions. But what do these labels really say?
The Fairtrade label was created to help small farmers achieve independence and the ability to self-govern.
Coffee farmers can certify themselves for sustainable and organic cultivation with the Fairtrade label and thus receive an additional premium, dependent on sales volume, for social projects in their communities. However, the costs for certification are usually immensely high and difficult for farmers to bear.
For us at The Coffee Board, the well-being of all people working within the value chain enjoys the highest priority. To ensure the best conditions for farmers while still achieving a marketable price, we have opted for Direct Trade.
3 Facts about Direct Trade
- The term Direct Trade is not protected
- There is no "one" definition
- There is no label for Direct Trade.
Direct Trade – from cultivation to cup – We are there.
The Significance of Direct Trade for The Coffee Board
For us, Direct Trade means not only short supply chains with direct influence on coffee quality. Direct Trade means fairness, transparency, personal proximity, addressing individual needs, and continuously improving the quality of life for our partners and their families on site.
What we do
We have made it our mission to source Specialty Coffee directly from farmers in East Africa (Uganda, Burundi, Rwanda, Kenya, Tanzania & Ethiopia). In cases where we buy coffee through cooperatives, we ensure that these demonstrably have a positive impact on their local community.
With our own family on site and through regular visits, we are in close contact and exchange with our partners. Only when our partners smile do we know that we have done everything right. This way, we can also be confident that our customers experience high-quality coffee enjoyment and a clear conscience at the same time.
When selecting partners and farmers, we consider, among other things, the following criteria:
- Remuneration of farmers, harvest helpers & seasonal workers
- Existing training opportunities provided by cooperatives (in direct collaboration with farmers, these are offered by us)
- Payment of health insurance
- Support for schools through cooperatives
- Payment of bonuses for excellent coffee quality
Our general values regarding Direct Trade:
- We want all people involved in the value chain to receive fair remuneration.
- We finance the coffee in advance in consultation with the farmers, thereby preventing long waiting times for the farmer.
- We see ourselves as equal partners and openly discuss our wishes and needs.
- We finance ourselves from our own resources and focus on healthy, sustainable growth.
In addition, every customer who purchases The Coffee Board coffee supports the orphanage "Orphans Hope & Life Kenya" with 50 cents per unit of coffee sold.
Concluding Remarks
In conclusion, I would like to say that everyone should be comfortable with their decision, whether it's Fairtrade or Direct Trade.
We have chosen the path of Direct Trade and are excited to take you on this journey. By doing so, we hope to convey more transparency, appreciation for the coffee product and the people behind it, as well as sustainability.