What is the Fair Trade minimum coffee price?
For most products, including coffee, FLO calculates a minimum Fair Trade price that is intended to cover the cost of sustainable production. For washed Arabica, the highest quality coffee, the Fair Trade minimum price is set at $1.25 per pound, plus an organic differential of $.20 if the coffee is certified organic. Should the world market price rise above these prices, the Fair Trade minimum price rises accordingly and becomes the world market price. In addition, importers pay farmer groups a Fair Trade premium, which is $0.10 per pound, over and above the Fair Trade minimum price. The Fair Trade premium is spent by cooperatives on community and business development projects. NOTE: The Fair Trade premium and organic differential were recently raised by $.05 cents each. Read more about the change here. In addition, the Fair Trade minimum price for coffee was raised by four cents in Africa, Asia, Mexico, and Central America, and by six cents in South America. Read about this change here
