Connect with us

Features

Spending term of the day: minimum pricing

Published

on

The minimum price is, quite simply, the minimum price that a buyer of a Fairtrade-certified product has to pay to a Fairtrade certified producer. Minimum prices apply to most Fairtrade products, including coffee, tea and bananas. 

It is not a fixed price, but provides the lowest possible starting point for negotiations between producer and purchaser. It is set to ensure that the producer receive a price that covers the cost of the sustainable production of whatever they are selling. This is done also to protect farmers at times when world markets fall below a sustainable level.

Fairtrade minimum prices are set based on research into producers’ costs of sustainable production and consultation with traders and other stakeholders.

Read more.

Advertisement

Like our Facebook Page

Advertisement

Trending