email from TransFair below. The change set to effect contracts written after June 1, 2008. History tells us, though, that this could effect current contracts.
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Dear Licensed Partner,
Over the past year, Fairtrade Labelling Organizations International (FLO), with the help of TransFair USA, producers, traders, roasters, and coffee experts has been doing research to ensure that Fair Trade’s impact in coffee producing communities includes the promise of a fair price. Our commitment is that a Fair Trade price must help cover costs of sustainable production and address the needs of farmers to deliver a quality product and allow them to invest in their organizations, their communities and their crops.
Over the course of 10+ years since the coffee price was set, FLO’s research concluded that dollar devaluation has significantly reduced the actual money in local currency that small farmers around the world receive for their coffee, and farmers are facing increasing costs in many areas of sustainable production. Our producers needed a modest increase in the minimum price to ensure that they can make ends meet.
As a result of the research, analysis, and stakeholder consultation, the Fair Trade minimum price paid to producers will increase by 4 cents a pound for farmers in Central America, Africa and Asia and 6 cents per pound for farmers in South America. This change results in a global floor price of US$1.25 per pound that will take effect for contracts signed after June 1, 2008. This change translates to a Fair Trade minimum price of US$1.35 for Fair Trade coffee and US$1.55 for Fair Trade organic coffee. This new minimum price will be valid at least until June 2010.
This change will benefit almost one million small farmers and their families in 25 countries throughout the world. We believe that this new price will strengthen the Fair Trade system and help us deliver the message to consumers that Fair Trade is meeting its commitment. We are the only coffee certification model to provide a guaranteed minimum price that allows producers to significantly improve their livelihoods and invest in the sustainable production of their coffees. TransFair USA is committed to supporting this message by helping the producers tell their story to your customers.
We thank you for your continuous support to improve conditions for coffee farmers around the world through Fair Trade and look forward to continuing our work together to support these efforts in the future.
Please share with appropriate parties within your organization and feel free to contact TransFair USA if you have further questions regarding this announcement.
Best Regards,
Kim Moore
Director of Business Development, Coffee and Beverages
TransFair USA
