FLO International Raises Fairtrade Price for Coffee Farmers

Oakland, CA (December 12, 2007) - Fairtrade Labeling Organizations International, the only certification model that guarantees prices to farmers that meet strict social and environmental sustainability criteria, is announcing an increase of the guaranteed minimum washed Arabica coffee price to US $1.25 per pound to take effect on 1 June 2008. This new minimum price will be valid through at least June 2010, when another price review will take place.

The coffee price adjustment, consisting of an average increase of USD 5 cents per pound, reflects Fairtrade's deep commitment to fair prices and sustainable livelihoods for family farmers, a cornerstone of its strategy for sustainable development and community empowerment. The adjustment will benefit more than 250 producer organizations in countries throughout Asia, Africa and Latin America, representing almost 1 million small farmers and their families. 

"I represent over one million people in Latin America who need the security of the Fairtrade minimum prices in order to continue living and working on their land with dignity," said Raúl del Águila, a Peruvian coffee farmer, President of the Latin American Fairtrade Producers Network (CLAC) and a FLO Board member. Águila added, "No other certification system but Fairtrade guarantees that small producers get a decent return for their hard work. Consumers can be certain that this increase will help uplift living standards and have a direct and positive impact on the lives of Fairtrade Certified coffee farmers around the world," Aguila added. 

The Fairtrade minimum price for coffee is important because the international coffee market is highly volatile and characterized by wildly fluctuating prices. Frequently, such as in the 2000-05 period, international coffee prices plummeted to below USD 0.60 per pound, well below the cost of production, forcing literally millions of family farmers into poverty. In this difficult and unstable context, the Fairtrade price makes a substantial difference in the lives of farmers by ensuring greater price stability and a sustainable income.

The review of the minimum price represents an achievement for all the stakeholders of the Fairtrade Labeling system. Farmers get a price which covers the cost of producing high-quality sustainable coffee. Sustainable production helps to ensure that high social and environmental standards are maintained, and that producers have access to all the inputs and services they require to grow quality coffee. At the same time, the increase will help ensure that Fairtrade coffee continues to be attractive to consumers and industry as well.

According to Ian Bretman, Deputy Director of the Fair Trade Foundation in the UK and FLO Board member, "The conscious consumer demands high-quality products that make a difference in the world. The research is clear: consumers are willing to pay more for Fairtrade products because they help lift farmers out of poverty. This moderate price increase in Fairtrade coffee will not undercut the dramatic growth of consumer demand for Fairtrade products; on the contrary, it gives concerned consumers additional evidence that Fairtrade truly delivers on its promise of farmer empowerment."

The price increase is the result of extensive field research into the real costs of sustainable production, which indicated that an adjustment was needed. The research phase was followed by a multi-stakeholder review process through which feedback was provided by representatives of producers, consumers and industry from more than twenty countries around the world. This input helped FLO reach a well-balanced decision that ultimately was approved unanimously by the FLO Board of Directors. 

"Fairtrade is good for farmers and good for our coffee business," commented Rick Peyser, Director of Sustainability for Green Mountain Coffee Roasters and a member of FLO's Board of Directors. "Fairtrade strengthens our supply chain and gives farmers the resources they need to maintain an extremely high quality coffee. Quality is essential to ensuring long-term growth in consumer demand for Fairtrade. We support the price increase because it will maintain quality and help make the farmers stronger business partners."

About TransFair USA
TransFair USA is the only independent, third-party certifier of Fair Trade Certified products in the United States. TransFair USA audits and certifies transactions between U.S. companies offering Fair Trade Certified products and their international suppliers to guarantee that the farmers and workers producing Fair Trade Certified goods were paid fair prices and wages. TransFair USA certifies coffee, tea, herbs, vanilla, cocoa, chocolate, rice, sugar, bananas and flowers. For more information, visit www.FairTradeCertified.org 

Contact:
Anthony Marek
PR director, TransFair USA
510.663.5260 ext. 346
amarek@transfairusa.org