Fairtrade International Announces Adjustments to its Minimum Coffee Prices – CoffeeTalk
Fairtrade International has announced adjustments to its minimum prices for coffee, effective from December 1, following a comprehensive year-long review of production costs and market dynamics. The new Fairtrade Minimum Price for washed Arabica will increase by $0.20, bringing it to $2.00 per pound—an approximately 11% rise from the previous $1.80 per pound. Notably, washed Arabica comprises over 80% of Fairtrade coffee sales. In contrast, the minimum price for natural Robusta will see a $0.10 increase, raising it to $1.30 per pound, despite representing less than 10% of Fairtrade coffee sales. Prices for natural Arabica and washed Robusta will also be adjusted upward, increasing by $0.20 and $0.10, respectively.
Fairtrade International will maintain the existing Fairtrade Premium and organic differential at $0.20 and $0.40 per pound, respectively, citing historically high coffee prices and the need for stability for cooperatives and traders as reasons for these unchanged elements. The Fairtrade Minimum Price serves as a global safety net that activates when market prices dip below this set level, with Fairtrade emphasizing that coffee prices have not fallen below $2.00 per pound since March 2024.
The organization plans to conduct a full review of coffee prices every four years as part of its broader strategy. Colleen Anunu, Fairtrade International’s senior advisor for coffee, stressed the importance of the Fairtrade pricing structure in ensuring a dignified livelihood for coffee farmers and as a critical safety net that enhances farmer resilience against challenges such as climate change and regulatory pressures. Fairtrade’s price analysis was informed by data from 57 cooperatives across 13 countries for the 2023–2024 crop period, and involved consultations with over 600 stakeholders to gather feedback.
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Source: Coffee Talk
