• farmers with kiwa products
  • Farmers with Yana  shungo
  • Cerotal
  • Farmer
  • farmer
  • farmer
  • farmer
  • yana shungo
  • yana shungo hands
  • farmer
  • farmer
  • farmers

How it works? 

Good companies can Create Value. By Direct Trade they Share that Value creation with farmers in their supply chain. A Shared Value approach reconnects company success with social progress. To read more about Michael Porter´s concept on Value Creation click here.

Example:

A company produces potato chips and buys the fresh potatoes from intermediaries. The company currently pays $10 for a sack of potatoes to an intermediary, and in turn, the intermediary buys that same sack at $6 from small farmers. This model leaves $4 being charged by the intermediary, and it also leaves the company without any access to traceability or standardization. If the same company uses Direct Trade, it could pay $8 directly to the small farmer saving $2 to be invested in assuring that the potatoes are harvested in an ecological way and the raw materials comply with certain standards. In order to assure quality standards and small farm development, the company will have to invest some or all of the savings, equal to $2, back into its agricultural program. Using those $2, a Direct Trade company can then provide its suppliers with technical support, education, seeds, technology, direct financing, and more.

 Is Direct Trade a certification?

Direct Trade is NOT a certification. Direct Trade is a promise that the company makes to its distributors and end consumers stating that part of its profits and value creation are re-directed into farmers in its supply chain. If you are interested in enrolling your company to Direct Trade, please review the following requirements:

If you are interested in enrolling your company to Direct Trade, please review the following requirements:

  • Need to be a manufacturing company without any pending liabilities related to Governmental Regulating Institutions (taxes, employee benefits, among others).
  • Show evidence that all the employees are working under the current Labor Law.
  • Have at least 25% of small farmers as their suppliers from which at least 40% must be women.
  • Buy directly from small farmers at set prices.
  • Show evidence of working together with an external party, such as an international development organization, on a program that increases small farmer´s income and/or productivity.
  • Have an Inclusive Supplier Program where the farmers interact with the manufacturing company (showing evidence on visits to the plant and events)
  • Show evidence that the company provides preferential payment terms to small farmers.
Join us!

If your company is working under these guidelines and wants to become a member of Direct Trade, please send us an email and we will reply in a timely fashion.

application@direct-trade.org
Direct Trade Products Meet our members:
kiwa natifs