Our Coffee Pricing staying the same despite the Increased Fairtrade Premium
The new Fairtrade prices, which come into effect for contracts signed as of 1 August 2023, will increase the baseline price by 19 percent and 29 percent for Fairtrade-certified Robusta and Arabica coffee, respectively. The new Fairtrade Minimum Price for washed Arabica beans – which represent more than 80 percent of all Fairtrade coffee sold – is $1.80 per pound, an increase of 40 cents over the previous price of $1.40 per pound.
‘The Fairtrade Minimum Price is critical for coffee farmers as it cushions them from the unpredictable fluctuations they face on the coffee market. But the situation coffee farmers endure globally due to financial hardships and climate change remains unsustainable and, quite frankly, puts the entire future of coffee at risk,’ warned Silvia Gonzalez, Manager at the Nicaraguan coffee producer UCA Miraflor and Board Member at Fairtrade regional producer network CLAC.
‘If we’re going to be serious about tackling poverty in the global supply chain, then everyone in the supply chain – from consumers to retailers to traders – must do their part and pay farmers their fair share,’ Ms. Gonzalez added.
‘Despite the recent spikes in global coffee prices, coffee farmers are struggling with inflation, skyrocketing production costs, and crop loss due to the effects of climate change.
‘Many coffee farmers are abandoning their farms in search of opportunities elsewhere and young people today in coffee-growing communities struggle to see a future in coffee. The fact that farmers cannot make a living in coffee is a tragic commentary for the industry and a huge risk for the future of the global coffee sector as a whole,’ said Monika Firl, Senior Manager for Coffee at Fairtrade International.
‘With the new Fairtrade Minimum Price, Fairtrade is offering coffee farmers and their cooperatives a pricing safety net, better adapted to the uncertain times we are living in, while leaving the door open for them to earn more when market prices are above the Fairtrade Minimum Price,’ Ms. Firl continued. ‘This is an essential tool that coffee farmers must be allowed to leverage in order to find renewed stability in their profession.’
How will this affect me?
It won’t! The good news is that we have decided to absorb this cost so you can enjoy your fairtrade coffee knowing that it is still helping those who produce it without any extra cost; enjoy your coffee with a conscience.