How Is The Minimum Price Determined By Fairtrade Standards And Pricing?

The minimum price paid to Fairtrade producers is determined by the Fairtrade Standards and Pricing Unit. It applies to most Fairtrade certified products. This price aims to ensure that producers can cover their average costs of sustainable production. It acts as a safety net for farmers at times when world markets fall below a sustainable level.
When the market price is higher than the Fairtrade Minimum Price, the buyer must pay the higher price. Producers and traders can also negotiate higher prices on the basis of quality and other attributes.
The FAIRTRADE Mark for cotton was launched in 2006 and since then, the size of the market has grown rapidly, with retailers launching a growing variety of products bearing the mark. The FAIRTRADE mark

As recently as 2001, the price dipped so low that the average coffee grower received only 45 cents per pound of coffee. However, fair trade buyers that year paid $1.21 per pound of coffee, better enabling coffee growers to purchase necessities Fair trade certification made this possible.
To ensure these standards and to justify the higher-than-market fair trade prices, customers want to know which products they can put their conscious-driven spending dollars behind. National fair trade labeling organizations such as TransFair USA and the European Fair Trade Association work with the FLO to handle product

Advocating for fair working conditions and worker rights is integral to Fairtrade’s mission.

It’s about supporting the development of thriving farming and worker communities to have more control over their futures, and protecting the environment in which they live and work.
And it’s your opportunity to connect with the people who grow the produce that we all depend on.

FAIRTRADE MINIMUM PRICE
For most Fairtrade goods there is a Fairtrade minimum price which is set to cover the cost of sustainable production for that product in that region. If the market price for that product is higher that our minimum price, then producers should receive the market price. Payment of the minimum price is regularly audited and checked by FLO-Cert. This acts as a vital safety net for farmers and workers and protects them from fluctuations in the market prices of the products they grow for a living. This protection ensures they can have an assured and stable income and plan for their future. Fairtrade is the only certification scheme that offers this unique minimum price protection for