DIRECT TRADE

Direct Trade is an initiative launched by CEOs of Latin American companies that believe that current certifications on fair/direct/ethical trade were not really capturing the shared value concept that some companies are implementing. They felt that none of these certifications were really benefiting, the farmers or the manufacturers. It works by avoiding intermediaries, and establishing a direct connection between farmers and manufacturing companies. Its goal is to establish a trusting, long-term relationship between both parties, in order to ensure the wealthfare and success of the entire value chain. This allows companies to market responsible products, that consumers can feel at ease of purchasing.



It is important to note that the savings by avoiding the intermediaries’ traditional fees, are retained mostly for reinvestment in the farmers, in technical and social support programs. This way, both parties can effectively increase the yield and quality of the products, while at the same time striving for the social and economic development of rural communities.

To learn more, enter the Direct Trade website >> 

 

“The purpose of the Corporation must be redefined as creating shared value, not just profit per se”
- Michael Porter.