direct trade

Not all coffee is born equal

Union coffee buying philosophy is driven by our demand for high quality that also requires us to support sustainable livelihoods of smallholder coffee farmers.
Our quality-first approach incentivizes farmers to produce exceptional tasting coffee. Our experience shows that an effective way to get access to this level of quality is by engaging directly, through open discussion and by negotiating sustainable prices with farmers who recognise the value of the crop they produce. We want farmers to prosper so we guarantee the price that is paid directly to them, independent of other supply chain costs.

Union Relationship is our Direct Contact Trade Model

Union Relationship is our coffee buying strategy from farms where we source our coffee in a transparent price model. We develop long-term relationships and encourage farmers to improve their quality at every stage of the farming cycle. We assess labour standards and living conditions for farm workers ( Code Of Conduct ) and agree the approach for corrective actions where appropriate.

We buy our coffee either, directly from producers or in some circumstances work with specialized exporters in transparent price contracts, to provide expert services in this relationship. To participate in Direct Contact Trade Model we require:-

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  • Quality first scoring greater than 84+ Q Grader Cupping Scale. 
  • Verified price at the farm-gate to co-operative or estate farm is greater than 25% above International Fair Trade (FLO) certified minimum price.
  • Quality Price incentive: From USD+$0.20c/lb, 88+ Q Grader Scale. 
  • Producer committed to Union Hand-Roasted Code of Conduct, encompassing labour standards and sustainable environmental practices. 
  • Transparent financial transaction with all participants in the supply chain.
  • Union visit producers within 12-24 month period to monitor quality and discuss business goals.

Our approach is not to rely solely on certification, although some Union Relationship coffees are Fair Trade certified, but by paying sustainable prices that meet the cost of production and allow investment. We establish a link with cup quality and coffee value through paying an additional incentive premium to motivate farmers further to improve their quality. We believe this is the most effective way to expand economic opportunity and for smallholders to escape the commodity market by producing coffee with intrinsic value.

We set up minimum purchasing commitments with farms so they can sustainably plan for the next harvest. We support forward finance either direct or co-operating with specialized pre-finance agencies, for those smallholders most in need.

We developed Union Relationship / DCTM because of frustration at the failure to differentiate quality within the Fair Trade market, the unfairness of concessions made to large businesses using the Fairtrade logo where unfair practises occur in their business. We are also frustrated by the cost burden of Fairtrade certification to small scale farmers and to the marketing sales levy fees we pay that could be more effectively targeted to the farmers we buy from.

Guest Trade

Beyond our Union Relationship / Direct Contact Trade Model we source through other mechanisms which can include Cup of Excellence ®, or exceptional micro-lots we’ve been introduced to through specialized exporters. The provenance and traceability of these coffees is verified, as well as price paid to producer but these may not be long-term relationship nor committed to Union Code of Conduct. These are our Guest Trade coffees.

These Guest coffees gives us access to exquisite, occasional lots and is the opportunity to get to know new coffees which may reveal their potential to introduce into our Union Relationship/ DCTM