Direct trade is when coffee roasters buy directly from the growers, cutting out both the traditional middlemen as well as the organizations that control certifications. There are problematic aspects of both direct trade and global certification systems that pre-date COVID-19. Direct trade provides no method for consumers to verify the claims made by coffee companies. Because direct trade programs hinge on the forming of a business relationship between coffee companies and smallholder producers, they disproportionately benefit well-off, larger-scale farmers who speak English or Spanish and provide a ready-made product for export. Likewise, some studies have shown that while Fair Trade may benefit higher-income farmers, it provides negligible benefits for smallholder farmers. Neither system is perfect, and many barriers to ensuring smallholder farmers equity have only been exacerbated by COVID-19. Proving smallholder farmer participation to conscious consumers who increasingly expect brands to verify their claims, without being able to visit the farms, presents a significant challenge. As Generation Green steps into economic power, we will witness an increasing demand for new methods of remote ESG claim-verification, including the ability to prove the fair participation of smallholder farmers in coffee supply chains. BLOCKCHAIN AS A SUPPLY CHAIN BACKBONE Lacking the ability to visit smallholder farms in order to verify ESG and impact claims well into the foreseeable future, many are looking toward digitized supply chain solutions to fill the gaps. However, the unique social and environmental contexts presented by coffee supply chains raises significant questions about the applicability of traditional, digital supply chain solutions. 7
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