coffeeguide
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  • Using Fairtrade labels

     
     
    Coffee to be sold under a Fairtrade label must be purchased directly from groups certified by FLO. The purchase price must be set in accordance with Fairtrade conditions of which the following are the most significant:
    • The purchase price should be the reference market price or the Fairtrade Minimum price (whichever is higher), plus the Fairtrade Premium, plus the organic differential where applicable.
    • Reference market prices are those of the New York (Arabica) and London (Robusta) futures markets, as described below:
    • Arabicas: the New York ‘C’ market (NYKC) shall be the basis plus or minus the prevailing differential for the relevant quality, FOB origin, net shipped weight. The price shall be established in United States dollars per pound.
    • Robustas: the London Terminal market (LIFFE) shall be the basis plus or minus the prevailing differential for the relevant quality, basis FOB origin, net shipped weight. The price shall be established in United States dollars per metric ton.
    • Fairtrade minimum prices are guaranteed minimum prices. They have been set as per the table below, differentiated according to the type of the coffee. If the reference price is below the Fairtrade minimum price level, then the Fairtrade minimum price applies.
    • These prices (either reference price or minimum price) shall then be increased by a fixed premium of 20 cts/lb (of which at least 5 cts for productivity and/or quality improvements).
    • For certified organic coffee with officially recognized certification, that will be sold as such, a further organic differential of at least 30 cts/lb per pound of green coffee will be due.
    • This calculation took effect on April 1st 2011.

    Type of coffee 

    Fairtrade minimum price 

    Regular or Conventional 

    USD cts/lb 

    Fairtrade 

    premium 

    USD cts/lb 

    Organic 

    premium 

    USD cts/lb 

    Washed Arabica 

    1.40 

    20 

    30 

    Natural Arabica 

    1.35 

    20 

    30 

    Washed Robusta 

    1.05 

    20 

    30 

    Natural Robusta 

    1.01 

    20 

    30 

    3.6.5-en

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