The coffee value chain: From Fairtrade to direct trade

Fairtrade and direct trade are examined as sourcing models within the global coffee value chain, with attention given to their shared origins, points of convergence and key differences. Drawing on Karl Polanyi’s concept of the double movement, the analysis situates both approaches as responses to the social and economic disruptions that followed the liberalization of the global coffee market after the collapse of the International Coffee Agreement. A review of existing literature traces the evolution of Fairtrade from a movement rooted in alternative trading relationships to a formalized certification system, before exploring the emergence of direct trade as a quality-focused and relationship-based sourcing model. Rather than representing opposing approaches, Fairtrade and direct trade are understood as complementary efforts to re-embed social and ethical considerations within coffee trading relationships. By highlighting their intersections, limitations and emerging practices, the discussion contributes to ongoing debates on equity, governance and sustainability in global coffee value chains.