Fairtrade International has announced that it will increase its minimum coffee prices later this year. In a concerted effort to provide a stronger safety net for coffee farmers and workers, the not-for-profit organization’s decision is based on an imperative to strengthen price security in the face of increasing production costs and climate-related instability, among other factors.
The organization’s decision comes after a year-long research and consultation process. This included gathering data, market analysis and stakeholder consultation. Earlier this month, Fairtrade’s Standards Committee, which includes coffee farmer representatives and commercial partners, made the final decision to introduce new minimum prices.
As of Dec. 1, 2026, the new minimum price for washed Arabica coffee beans will be $2.00 per pound. This represents an increase of 20 cents per pound or 11 percent. As for natural Robusta beans, the new minimum price will be $1.30 per pound, representing an increase of 10 cents over the previous minimum price. These same changes will also affect natural Arabica and washed Robusta beans.
Fairtrade Minimum Price
Given recent market volatility, Fairtrade International’s Minimum Price is more important than ever. Acting as a protective measure for coffee producers, this global floor price is rigorously calculated based on production cost analysis, stakeholder consultation and communication between all parties.
The Fairtrade Minimum Price comes into effect when market prices fall below the organization’s threshold price. This allows farmers to feel protected when coffee prices are low and also empowered to earn more money as global market prices increase. Fairtrade pointed out that coffee prices haven’t fallen below $2.00 per pound since March, 2024.
No Change to Fairtrade Premium & Organic Differential
During the coffee price review, it was decided that the Fairtrade Premium and organic differential would stay the same at 20 cents per pound and 40 cents per pound, respectively. This decision was reached based on market research, with recent historically high prices playing a large part in the overall verdict.
Fairtrade Premium is an additional price paid to cooperatives, to be used for improving production methods, strengthening cooperative business strategies and community development.
The organic differential is intended as an incentive for coffee farmers to switch to organic production methods, and takes the increased costs of doing so into account. The review concluded that, for the most part, the existing organic differential rate aligns with current costs.
Looking to the Future
“Fairtrade’s price review process is unique in the coffee sector, as the only methodology that provides an essential understanding of the various stakeholders in the value chain – from farmer cooperatives to roasters to brands and retailers – as well as civil society pushing to create a thriving coffee system,” said Colleen Anunu, Fairtrade International’s Senior Advisor for Coffee. “Coffee farmers want to earn a dignified livelihood. The Fairtrade pricing structure is a critical safety net for cooperatives that supports farmer resilience in the face of climate change and emerging regulatory pressures, and also supports the security of global supply chains. It is the only market pricing intervention that involves such rigor and transparency.”
Sources
- Fairtrade Coffee Price Review Brief — Fairtrade International