For sustainable society


Fair trade price for cacao increased by 20%

Fair Trade USA, the leading third-party certifier of fair-trade products in North America, has announced that it will increase its minimum price and premium for cocoa by 20% from October 1st, 2019. This follows a similar announcement by Fairtrade International in December 2018. The aim is to reduce the extreme poverty and child labor that is prevalent in cocoa farmers in West Africa.

Under these circumstances, Fairtrade USA’s minimum price will increase from $2,000 to $2,400 per MT (1,000kg) and the premium from $200 to $240 per MT, for conventional cocoa. In the case of organic cacao, $300 will be added to the market price or the fair-trade minimum price, whichever is higher, and the premium will increase from $200 to $240 per MT.

According to Fairtrade USA, “the decision is an investment for the cocoa producing communities to survive for a long time and is necessary for the sustainable production of cocoa. This allows us to look ahead to the next harvest, and the additional income will support their own families and the continuation of farming.”

Premiums are directly paid into the Fair-Trade Community Development Fund and are used for some purposes including securing clean drinking water for farmers, establishing health clinics and providing scholarships and school supplies for children. Fairtrade USA said that $4.4m in premium was paid from the 48.8m pounds of cocoa in 2018. The move has already been supported from the industry.