How have the Fairtrade minimum prices been established?
FLO works with a pricing methodology, which first defines per product and per region, where the product is produced, the Cost of sustainable Production (CoP), and Cost of sustainable Living (CoL). FLO’s principle is that a Fairtrade minimum price at least covers the CoP and CoL. On top of that price, FLO establishes a premium, which has to be invested in social, economic or environmental projects of improvement, decided upon democratically within the organisation.
