New Fairtrade prices to counter economic and climate pressures
In order to strengthen the protection of coffee farmers and their families against price volatility, Fairtrade Canada will adjust its prices on August 1st to counter global economic instability, significant cost increases and the intensification of the effects of climate change.
The Fairtrade minimum price 
The Fairtrade minimum price is essential for coffee producers, as it protects them from the unpredictable fluctuations they face in the coffee market. However, the situation farmers are enduring globally due to financial hardship and climate change remains unsustainable and seriously jeopardizes the future of coffee. For this reason, the Fairtrade minimum price will now be US$1.80. The Fairtrade premium will remain at US$0.20, while the organic differential will increase by US$0.10, for a new price of US$0.40.
As we witnessed firsthand during our recent trip to Guatemala, climate change is creating numerous challenges for producers who must adapt their practices. The rainy season and temperature fluctuations result in a much less uniform flowering than in the past.
Moreover, production costs, including infrastructure, transportation, and fertilizers, have increased considerably. Labor demand has also been significantly impacted, not to mention the challenges posed by the migration crisis. The price increases therefore reflect these issues, which are now more pressing than ever.
In regular specialty coffee shops, premiums are also rising for the same reasons. Green coffee (before roasting) is a commodity traded on the market to structure transactions. At the market price, there is always a premium linked to quality. It is with this premium that farmers and mills manage to absorb the additional costs related to inflation and labor; by increasing the Fairtrade minimum price, it is possible to provide a safety net for farmers when market prices are low, ensuring that they do not subsidize the coffee industry by receiving less than the cost of producing their product.
To learn more about the impact of climate change at the origin, watch our video on the subject .
