Does Fairtrade raise coffee prices lift farmers out of poverty?
– PROTECT THE ORIGIN –
Many coffee farmers around the world are facing soaring production costs, inflation, crop failures due to climate change. This made them unable to make a living on coffee and had to leave their farms. Realizing that situation, Fairtrade decided to donate coffee prices to support farmers out of difficult situations. How specific is this decision, will it improve the poverty of farmers? Let’s find out with 43 Factory Coffee Roaster!
Fairtrade or Fairtrade Labeling Organization International (FLO) is an international organization that sets fair trade standards. The organization was established in the 1990s with the belief that “when you treat farmers fairly, everyone benefits”. Today, the Fairtrade network has grown to include 900,000 certified coffee farmers in more than 650 producing organizations across 31 countries. FLO is focused on connecting these disadvantaged manufacturers, companies, to support and enhance the status and lives of manufacturers through Fairtrade certification. With this certification, the product is recognized to have met the strict criteria for Safe Working Conditions; Sustainable livelihoods; Environmental protection; Community development. They will then be assisted by the Fairtrade marketing team in sourcing and selling at an appropriate price.
Fairtrade raises coffee floor prices to support farmers
On March 30, 2023, Fairtrade announced that it would raise the floor price of coffee so that coffee farmers can overcome their difficulties in the face of the current uncertain economic situation.
The new rates will come into effect on August 1, 2023 with an increase in Fairtrade certified Arabica and Robusta grades of 29% and 19% respectively. So by August this year, the new floor price of Arabica coffee will be $ 1.80 / pound, an increase of 40 cents. The Fairtrade price for Robusta coffee increased 19 cents to $1.20/pound from today. This price is determined after the analysis of production costs and the results of a survey of 540 participants, of which 86% are farmers from 40 countries. Prior to the announcement, it was evaluated and approved by the Fair Trade Standards Committee, which consisted of three manufacturer representatives, one union representative, three national Fair Trade representatives experts and a trader representative to ensure a new price that is beneficial to all parties especially the farmers.
Additionally, the guaranteed premium for Fairtrade and USDA Organic (FTO) coffee is also increasing from 30 cents to 40 cents per pound. At the same time, 900,000 coffee farmers in the organization will receive Fairtrade Premium – an additional subsidy from the profits of the project that the farmers have invested. This money can help them improve some farm supplies, infrastructure, business operations or other community services.
Will farmers’ conditions improve after Fairtrade raises coffee prices
According to Silvia Gonzalez, manager of Nicaraguan coffee producer UCA Miraflor and Member of the Board of Directors of the Fairtrade CLAC regional producer network: “The Fairtrade floor is very important to coffee farmers because it helps They reduce the risk of volatile market fluctuations.” With the new Fairtrade prices, farmers will receive a better share of the profits to be able to adapt and overcome the “low” period of the world. Besides, the floor price is pushed up but still lower than the market price, which will give them the opportunity to earn more money and have stability when continuing to devote to the profession.
However, nothing is certain, because we are living in a time of global crisis. Raising prices only partially improves the temporary difficulty. In addition, achieving a living income for farmers is not something Fairtrade can achieve alone, but requires community action across the industry. Everyone in the supply chain from consumers to businesses must have a sense of responsibility to protect the sustainability of the industry paying farmers their fair share.
The future of coffee is really bright and lasting only when coffee farmers are paid fairly and reasonably. Otherwise one day you may not be able to enjoy a delicious cup of coffee again. So, please accompany 43 Factory Coffee Roaster to protect coffee farmers!