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Additionally, they have the opportunity to create stable business relationships that introduce an element of security.
New
Bruce
前天 15:51
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前天 15:51
Farmers who sell direct may receive about 25% more than in other models.
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Therefore, the direct trade model has the potential to be a rewarding relationship for players at both ends of the chain.
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Regardless, the beans are not sold through ��coffee traders�� who would generally absorb a significant percentage of the profits.
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In other situations, multiple smaller farms may sell their cherries to a washing station, which then sells the green beans to a roaster.
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For example, some farmers may grow, process and sell their own coffees.
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While the essence of direct trade is simple enough, in some cases, a roaster may be limited by how ��direct�� it can be.
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Ultimately, a direct relationship humanises the producer-roaster relationship in which farmers are treated with the respect and fairness they deserve.
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Also known as ��relationship coffee��, it is typically based on interpersonal connections, mutual trust, price transparency, and a commitment to quality improvement beyond a single harvest.
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There is no regulatory body with direct trade, meaning the contract��s particulars, such as price and delivery times are negotiated by the parties involved.
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Direct trade is a process whereby roasters purchase green coffee directly from the producer or farmer, instead of through intermediaries.
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What is direct trade?
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前天 15:48
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coffee farmers collecting ripe coffee cherries in an article on whether roasters should buy from fair trade certified farmers.
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This, in turn, reduces the amount individual farmers can sell at the Fair Trade price.
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Conversely, when prices drop below the Fair Trade premium, it encourages more farmers to sell through the model.
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This often encourages farmers to sell their lowest quality crop through the model and find a private buyer for higher quality beans to increase profits.
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前天 15:48
One issue is quality when global coffee prices rise above what Fair Trade pays, including the premium.
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前天 15:47
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前天 15:47
While Fair trade has had a significant positive impact on the lives of many, it seems the model may need refining before it can truly realise its goal.
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前天 15:47
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前天 15:47
Daria believes this all takes a lot of effort that may be better suited for providing tools to improve the lives of farmers and provide customers with better coffee.
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The cumulative costs of meeting the certification criteria may outweigh the benefits of the model, with little being gained by the farmers.
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前天 15:47
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前天 15:47
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