- Direct trade has long been regarded as the ethical choice, ensuring both quality and transparency.
- However, following a record high for global coffee prices in February 2025, what was once viewed primarily as a “social project” rapidly became an essential business strategy.
- Companies that have built their operations around intentionality, connectivity, and quality understand that these values aren’t obstacles to profitability, but are the foundation of it.
- When executed successfully, direct trade becomes more than a sourcing philosophy; it transforms into a resilient business strategy that creates stability for everyone in the supply chain.
The specialty coffee industry has long prided itself on doing business differently. From its inception, the sector has championed transparent supply chains, meaningful relationships, and a commitment to quality.
Yet as coffee price volatility continues, roasters face an increasingly complex challenge: how to maintain these values while ensuring their businesses remain commercially viable.
This tension between ethics and economics isn’t new, but it has intensified. Rising C prices, climate-related supply disruptions, unprecedented tariffs, and increased operational costs have forced many roasters to reevaluate their sourcing strategies.
For some, this has meant compromising on the direct trade relationships that once defined their business model. For others, it has reinforced why these partnerships matter more than ever, not just as a moral imperative, but as a strategic advantage in an unpredictable market.
I spoke to Angela Suarez and Emilia Castellanos at Café Tío Conejo, Bryce Roszell at Open Seas Coffee, and Kevin O’Connor at The Tryst Trading Company to learn more.
You may also likeour article on how high prices changed the meaning of direct trade.
Why direct trade is at the core of specialty coffee
The specialty coffee movement emerged from a fundamental belief that coffee could – and should – be traded in new ways. Unlike the commodity market’s impersonal transactions, direct trade prioritised transparency, traceability, and equitable partnerships that recognised the skill and labour behind exceptional coffee.
“Specialty coffee was built on the drive to do things differently,” explains Kevin, Head Beverage Manager for The Tryst Trading Company, a restaurant and café group based in Washington, DC, the US. This philosophy shaped the industry’s early development, creating a culture where quality and fairer compensation were intrinsically linked.
For producers, direct trade represented recognition that the commodity market had long denied them.
“Direct trade is fundamental to specialty coffee because it’s the justification for producers like ourselves to be as sustainable as possible in all aspects,” says Angela, the owner of Café Tio Conejo, a specialty coffee farm in Caldas, Colombia. “It means that others recognise our hard work, something that might not be as transparent in other markets.”
How high coffee prices changed business
However, the persistent volatility of 2025 has shifted how the industry utilises direct trade. Coffee prices reached historic highs in February, placing unprecedented pressure on roasters’ margins. Climate change, the diminishing of suitable growing regions, and increasing production costs for farmers suggest that high prices are now the “new normal”.
Adding to these challenges, the uncertainty surrounding US tariffs on coffee-producing regions has further complicated the situation for many supply chain actors. Although the Trump administration recently exempted most coffee imports, steep 40% tariffs remain in place for Brazil.
Initially a values-driven movement in coffee, direct trade increasingly functions as a practical business strategy. While the underlying principles remain unchanged, roasters now emphasise the role of direct trade in supply chain management and risk mitigation.
“When buying coffee directly, you drastically increase the stability of your buying strategies,” says Bryce, the owner, founder, and executive director of Open Seas Coffee, an award-winning specialty coffee roaster in Stevensville, Maryland, the US, that celebrated its tenth anniversary this year.
“You are committing to coffees while they are still growing, which brings predictability for your growing partners,” Bryce adds. “This, in turn, helps ensure access to a reliable supply of coffees that are much less affected by drastic price shifts, at fair prices for all involved.”
This oversight becomes essential when managing volatile markets. Direct relationships enable roasters to anticipate supply issues, collaborate on pricing with producers, and maintain consistency for their customers – advantages that traditional commodity trading can’t offer.
How direct trade has become an effective business strategy
Specialty coffee’s passion-driven origins remain central to its identity, yet roasters and producers need to balance idealism and pragmatism. Success depends on honouring foundational values while implementing sound business practices that ensure long-term viability.
Open Seas Coffee, for instance, embodies this balance through three core pillars: intentionality, interconnectedness, and a commitment to quality. These operational principles guide every business decision, from sourcing to customer service.
“I have never bought into the concept that business and ethics need to be mutually exclusive or that they are fighting one another,” Bryce says. “For a business to hold real significant value, it needs to be pushed forward by its core values towards mutually beneficial profitability.
“Profitability that is gleaned out of benefiting one party at the cost of another is nothing more than doubling down oppressive cycles that lead to inequities,” he adds.
This philosophy challenges the assumption that ethical sourcing inherently reduces profit margins. Instead, it reframes sustainability as a competitive advantage that strengthens every link in the supply chain.
“When we construct long-lasting relationships and have standardised or narrowed down pricing for a couple of years, the fact that the stock market prices change daily doesn’t matter anymore,” Emilia explains. “With direct trade, if the coffee maintains its quality, the price is not the only thing in mind.”
The commercial benefits extend beyond price stability, helping foster brand loyalty. “We have committed to our community to offer high-quality coffee at everyday affordable prices, and Open Seas Coffee helps us keep that promise,” Kevin explains.
By embedding values into business strategy rather than treating them as separate concerns, roasters create resilient models that perform better during market uncertainty while strengthening partnerships across the supply chain.
Operating with intentionality
Intentionality in specialty coffee extends beyond marketing language. It must permeate every operational aspect of a business. This means viewing one’s position in the supply chain not as a transaction point but as a relational hub connecting producers, traders, roasters, café owners, and consumers.
Community building forms the foundation of this approach.
“As you pursue what creates standout coffees and how they are different from their peers, you naturally start asking the ‘why’ and ‘how’ questions, and those lead you to producers,” Bryce explains.
These relationships require genuine investment. Open Seas Coffee, for instance, implements intentionality by providing feedback to producers regardless of whether they purchase their coffee, connecting producers with other roasters when coffees aren’t the right fit, and cupping with wholesale clients to understand their specific needs.
“When other roasters turned us away on creating a custom blend in favour of an off-the-shelf product, Open Seas Coffee jumped at the opportunity,” Kevin recalls. “The intentionality and relationship building that they offer as a partner is unmatched.
“Through these relationships, we can adapt to changing conditions when sourcing coffee and allow flexibility when implementing our growth strategies,” he adds.
For producers, this intentionality manifests as genuine partnership rather than transactional buying.
“Over the years, our relationship with Open Seas Coffee has remained the same as it has always been, if not better,” Angela says. “They have roasted our coffees for our own events while also buying green coffee from us for their wholesale partners.”
When roasters approach direct trade with authentic intentionality, viewing producers as partners rather than suppliers and café owners as collaborators rather than customers, they create supply chains that withstand market turbulence while delivering exceptional quality.
These relationships require investment, transparency, and a willingness to share risk and reward equitably. However, the commercial benefits – from supply stability and quality consistency to brand differentiation and customer loyalty – make this approach not just ethically sound but economically sensible.
“By focusing on quality and working collaboratively towards that goal, it naturally decentralises the power dynamic and more evenly distributes it back to producers,” Bryce says. “It keeps us honest in that it allows producing partners to have a more marketable product and seek other buyers if we cease to be good partners.”
Ultimately, intentionality transforms how roasters conceptualise their role. Rather than simply purchasing coffee, they become facilitators of relationships that span the entire supply chain.
Price volatility and market uncertainty will continue to challenge roasters in making difficult decisions about their sourcing strategies and business models. Direct trade isn’t a luxury that businesses must sacrifice during difficult times; it’s a strategic asset that can provide stability, differentiation, and resilience.
The challenge for roasters isn’t choosing between values and profitability, but recognising the fundamental connection between these two elements. Companies that build their operations around meaningful relationships and shared sustainability can then secure their bottom lines.
Enjoyed this? Then readour article on what direct trade really means.
Photo credits: Open Seas Coffee
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