Higher Minimum Price for Organic Cocoa Announced

10 December 2010

Price Protection for Thousands of Fairtrade Producers Committed to Organic Farming

Thousands of organic cocoa farmers will have stronger protection against price volatility thanks to the higher Fairtrade minimum price announced recently by Fairtrade Labelling Organizations International (FLO). As of January 1st, certified farmers are assured a minimum price of US$2300/metric tonne for their organic cocoa sold on Fairtrade terms, or the market price if higher.

Organic cocoa farmers will earn an additional US$200 in Fairtrade Premium to invest in business and community projects for every metric tonne (MT) of cocoa they sell, up from US$150/MT.

“Cocoa farmers around the world lack money even to invest in maintaining their farms. This is deepening cocoa growing families’ poverty while causing a supply crisis in the global cocoa industry,” says Rob Cameron, FLO CEO. “This higher Fairtrade minimum price for organic cocoa will help deliver long-term security for cocoa farmers while the Fairtrade Premium brings in extra funds for development – together, the opportunity to invest in farm improvements and their children’s education.”

For farmers who lack resources, improving their economic situation through Fairtrade can be a prerequisite for gaining organic certification. Fairtrade has helped to deliver the stability and investment thousands of farmers and producer organizations have needed to convert to organic and maintain their organic certification. Organic certification enables producers to access the growing market for “double-certified” organic and Fairtrade cocoa products, which is one of the fastest growing segments of the chocolate market worldwide. Over one third of Fairtrade products sold today are also organic certified. 

FLO expects cocoa farmer organizations, who currently represent around 122 000 individual cocoa farmers, will earn at least US$10 million in 2011 in Fairtrade Premium for development projects they choose as priority.

FLO announced previously in October that it was raising the minimum price for conventional (non-organic) Fairtrade cocoa to US$2000/MT at FOB level, also valid as of January 1st.

 
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