fold faq How do you determine what price is a fair price?
A fair price for a product is one that covers the producers cost of sustainable production. On top of the production costs, FLO establishes a Fairtrade Premium, which is invested in social, economic or environmental projects of improvement, decided upon democratically by producers within the organisation or workers within the plantation. Fairtrade Minimum Prices are therefore not determined by bargaining, pressure tactics, or traders in commodity markets half way around the world. They are determined in a fair and systematic manner, and are periodically reviewed to ensure producers production costs are still being covered.
