Fairtrade International plans a minimum price increase by August 1-2023
July 15 - 2023
Coffee Geography Magazine
In a $200 billion coffee industry, coffee farmers are unjustly bearing many of the rising costs of coffee production, along with the challenges presented by climate change, while receiving little additional income despite rising prices for consumers. In fact, nearly half of smallholder coffee farmers are living in poverty, with 25% living in extreme poverty (less than $2.15/day).
Starting on Aug. 1, Fairtrade International, including its American chapter Fairtrade America, will implement an increased Minimum Price for coffee with the aim to better meet farmers' current realities.
The new price came after an extensive cost of production study along with a consultation that included outreach to more than 600 producer organizations and 745 commercial partners with one clear resounding message - farmers need to be paid more or they can't continue to grow coffee.
Benjamin Kouame, Chair of Fairtrade Africa shared of the new price model, "Truly resilient livelihoods of coffee farmers call for reviewing Fairtrade Minimum Prices to ensure that producers are selling at prices that cover their cost of production while working with stakeholders to meet other farming needs like climate change and adherence to ever-changing regulatory frameworks. Paying farmers a fair price for their crops is the bare minimum to keep them farming."
The new minimum increases prices by 19% for Robusta coffee and 29% for Arabica coffee.
Fairtrade International, or Fairtrade Labeling Organizations International e.V. is a product-oriented multi-stakeholder group aimed at promoting the lives of farmers and workers through trade. Fairtrade's work is guided by a global strategy focused on ensuring that all farmers earn a living income, and agricultural workers earn a living wage. Fairtrade works with farmers and workers of more than 300 commodities. The main products promoted under the Fairtrade label are coffee, cocoa, banana, flowers, tea, and sugar.
Fairtrade is an association of three Producer Networks, nineteen National Fairtrade Organizations (formerly: Fairtrade Labeling Organizations) and eight Fairtrade Marketing Organizations that promote and market the Fairtrade Certification Mark in their countries.
Producer Networks exist in Latin America, the Caribbean, Africa, Middle East, Asia and the Pacific. National Fairtrade Organizations exist in 16 European countries as well as in Canada, the United States, Japan, Australia and New Zealand. The organization also oversees Fairtrade Marketing Organizations in the Czech Republic, Korea, Hong Kong, Taiwan, India, Philippines, and Poland.