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FLO Raises Minimum Fairtrade Coffee Prices and Changes Standards

The dominant certifier of Fair Trade products in the world, Fairtrade International (FLO), announced on March 15 a higher global minimum price and premium, a higher organic differential, and revised trade standards, all for coffee. FLO-certified products represent around 90% of N. American retail sales of all Fair Trade goods.

Key changes include:

    1. An increase in the Fairtrade Premium to USD 20 cents/lb from the current USD 10 cents/lb, of which 5 cents will be earmarked for productivity and quality improvement efforts.
    2. An increase of the Fairtrade Minimum Price to USD 1.40/lb for washed Arabica coffee from the current USD 1.25; Arabica naturals will increase to USD 1.35/lb from USD 1.20.
    3. An organic differential of USD 30 cents/lb from the current USD 20 cents/lb. As prices for conventional coffee have risen, fewer farmers see value in seeking and maintaining organic certification even as demand is increasing.
    4. Revised trading standards that were developed to encourage fairer negotiations, clarify the role of price fixing, and reduce speculation. Complementary to the new Trade Standards, FLO is facilitating training for producers and traders on contracts, price fixation and risk management strategies.

More at FLO press release

Also compare FLO and other certifiers at FTRN Webinars

1 Comments

  1. Very good post with excellent points made about the key changes made in pricing and the impact on coffee availability and general trading practices. Concise and very informative. Thank you for sharing your insights and expertise.

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