Fair Trade Coffee Price Comparison

True price developed a rigorous and scalable methodology to measure the farmer household income of coffee producers across 7 countries.

Fair trade coffee price comparison.

The fair trade certified seal represents thousands of products improving millions of lives protecting land and waterways in 45 countries and counting. However the price paid by fair trade merchants for a pound of coffee is 1 26 per pound. This has been rising steadily and has come up from an all time low of 45 cents per pound in 2001. 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.

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. Few roasters are large enough to afford such a robust pricing strategy but many come close. This is because the fair trade association has set 1 21 as the sustainable production price for coffee. The analysis included insights in the distribution of farmer household income the profitability of coffee and the value added.

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. 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 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. Intelligentsia one of the largest specialty coffee roasters in america guarantees farmers at least 25 more than the fair trade price.

Results allowed us to compare wages and incomes to regional benchmarks. Beer 500ml fairtrade 1 85 normal 1 85 biscuits 125g fairtrade 1 23 normal 1 15 tea bags 80bags fairtrade 2 62 normal 2 05 instant coffee 100g fairtrade 1 79 normal 2 98 sugar gra. Fairtrade minimum price and premium information. Purchases have sent 740 million to farmers and workers since 1998.

If the market price falls below the fair trade minimum price as it did in august 2017. 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. Coffee choosing fairtrade coffee means helping coffee farmers around the world to get a fair deal.