Fair Trade Coffee Price Comparison

The fair trade minimum price for coffee was last set in 2011 according to a global benchmark on production costs.

Fair trade coffee price comparison.

On top of that they earn 0 20 per pound in fairtrade premium of which at least 25 percent is invested in productivity and quality initiatives. Purchases have sent 740 million to farmers and workers since 1998. This has been rising steadily and has come up from an all time low of 45 cents per pound in 2001. By choosing fairtrade coffee you ensure farmers get a fair price for their beans and an additional premium to invest in schools and reforestation and agricultural improvements for example.

The analysis included insights in the distribution of farmer household income the profitability of coffee and the value added. The standard minimum price for washed arabica unroasted coffee is 1 40 per pound or 1 70 per pound if the coffee is also certified organic. The table below lists the fairtrade minimum prices and premiums for all certified products. Results allowed us to compare wages and incomes to regional benchmarks.

True price developed a rigorous and scalable methodology to measure the farmer household income of coffee producers across 7 countries. However the price paid by fair trade merchants for a pound of coffee is 1 26 per pound. The fair trade certified seal represents thousands of products improving millions of lives protecting land and waterways in 45 countries and counting. Fairtrade certified coffee cooperatives currently earn the fairtrade minimum price of 1 40 per pound about 40 more than the current market price or 1 70 per pound organic.

This is because the fair trade association has set 1 21 as the sustainable production price for coffee. When the market price is higher than the fairtrade minimum price producers should receive the current market price or the price negotiated at contract signing. The similarities between fair trade and direct trade are that they both cut out the middleman meaning that green coffee buyers work directly with coffee farmers. Few roasters are large enough to afford such a robust pricing strategy but many come close.

Another similarity is that the result of building a long term buying relationship yields a better quality coffee and a better quality of life for farmers. Fairtrade minimum price and premium information. Intelligentsia one of the largest specialty coffee roasters in america guarantees farmers at least 25 more than the fair trade price.