Bananas Fair Trade Floor Price

The fairtrade minimum price where it exists is the minimum price that must be paid by buyers to producers for a product to become certified against the fairtrade standards.

Bananas fair trade floor price.

However the wages achieved by fairtrade workers remain below a minimum income standard which would cover the cost of food education travel housing clothing and cultural activities. The fmp is a floor price which covers producers average costs of production and allows them access to their product markets. Farmers in the two countries which together produce more than 60 percent of the world s cocoa supply have been hit hard by a collapse in cocoa prices in 2017. But a highly competitive market creates price pressure on bananas ultimately putting the squeeze on banana growers.

This price pressure can leave banana growers unable to cover the costs of production threatening their livelihoods. To help the banana sector make this transition to sustainability fairtrade international commissioned true price and trucost to prepare a first ever study on the external social and environmental costs of banana producers in the key origins of colombia dominican republic ecuador and peru. Fair trade standards for bananas. A group of industry experts made the case for paying a fair and sustainable price for bananas as part of the fruit logistica trade fair in berlin on 7 february.

It mainly applies to goods produced for the international export market such as bananas cocoa coffee cotton tea or sugar. Since the late 1990s the. Fair trade is a way of trading products that aims to ensure that producers in particular smallholders receive a fair price and a secure livelihood. Fairtrade minimum price and premium information.

The table below lists the fairtrade minimum prices and premiums for all certified products. The banana industry is labour intensive and demanding. When the market price is higher than the fairtrade minimum price producers should receive the current market price or the price negotiated at contract signing. Choosing fairtrade bananas makes a difference.

Fair trade is based on higher prices paid by consumers that allow an equitable distribution of gains from trade over the chain partners. However the wages achieved by fairtrade workers remain below a minimum income standard which would cover the cost of food education travel housing clothing and cultural activities. This is not a commercial brand but a marketing strategy. Today fairtrade bananas account for an increasing percentage of the total world trade in bananas and over a third of those sold in the uk carry the mark.

Fairtrade bananas was a marketing initiative which focused on increasing the price paid to small banana growers and the wages of agricultural workers.