Photo: roboppy (flickr)
These days, the coffee market is volatile. Prices rapidly fluctuate due to environmental and economic concerns often leaving small producers with emptier pockets than they’d anticipated, even with fair trade pricing standards.
A recent spike in coffee prices has led to concerns that growers in underdeveloped countries may not be getting enough money for the work they’re doing.
To combat this, Fairtrade International has enacted new standards to make sure that everyone who contributes to your morning latte is getting fairly compensated.
Here’s some of what’s changing:
- A higher fair trade minimum price. A pound of washed Arabica beans now earns a minimum of $1.40 per pound, up from $1.25 per pound.
- More money for organic production. Add thirty cents to the minimum price if the beans are produced organically. This is a ten-cent increase for producers to cover the rising costs of organic farming.
- Higher premiums. The basic fair trade premium will be increased, including a five cent per pound bonus for farms that get innovative with productivity techniques that increase productivity and quality.
- New trading standards. Fairtrade International hopes these standards will lead to better negotiations and fewer instances of price speculation.
- High prices prompt new Fairtrade standards for coffee (Food Navigator)