Trading transparency: How it affects the coffee farmers?

Abstract: Trading processes are occurring every day in all industries, and people within these processes are constantly faced with inequalities due to different power structures and opportunities. In particularly, the coffee industry is one industry that is affected by these trading differences. The purpose of this thesis is to examine two different trading concepts within the coffee industry; blockchain and direct trade, and how these are affecting the livelihood of the coffee farmers. This thesis was analysed from consumer’s and supplier’s perspective, which correspond to blockchain and direct trade respectively. Further, through a deductive qualitative research we gathered empirical findings which prove that farmers of developing countries such as Ethiopia and Guatemala can better off through a transparent and essential relationship, which either concept provides. Particularly, while blockchain encourages ethical customer to channel its purchasing power to the farmer, in order to improve their livelihood, a direct trade relationship between farmer and the buyer provides a personal connection in a vision to thrive together.