Fairtrade raises Minimum Price for bananas amid soaring costs for farmers
MADRID, Spain – Fairtrade International has increased its Minimum Prices for bananas in direct response to a combination of external pressures negatively impacting producers, including geopolitical instability, climate change, and rising input and logistics costs. The new Minimum Prices were announced today on the eve of Fruit Attraction 2026.
The average Fairtrade Minimum Price for bananas has increased by 5.6% at Ex Works level and by 3.9% at FOB level, with variations by origin. The new Minimum Prices for banana, approved by Fairtrade International’s Standards Committee in September, will be valid for contracts with producers beginning on the 1 January 2027.
Fairtrade’s Minimum Prices for bananas are updated each year. However, this year’s increase is significant and is a direct response to the pressure that producers are facing. Extreme weather events, including El Niño, pests and diseases, such as Fusarium Tropical Race 4, as well as rising production and sustainability costs, are affecting productivity and demand a significant investment in resilience and sustainable practices.
“Banana producers are at the beginning of a supply chain that is increasingly exposed to global shocks, yet they often have the least ability to absorb additional costs,” said Silvia Campos, Senior Advisor, Banana, Fairtrade International. “Fair and sustainable supply chains require shared responsibility. That starts with prices that reflect the real costs of sustainable production, alongside long-term sourcing and collaboration to build resilience.”
The Banana Price Review 2026 was conducted in accordance with Fairtrade’s Standard Operating Procedure for setting Minimum Prices and the full-price research methodology. The review used validated production cost data from certified producers, technical assessments to address data gaps or non-available data, and consultations on 47 Fairtrade Minimum Prices across nine origins and two country clusters. In total, 114 certified producers, exporters, importers, and retailers participated in the consultation process.
Fairtrade continues to have in-depth conversations with stakeholders, especially producers to understand the issues and support with solutions that will enable banana producers to thrive. Producers noted that Fairtrade’s pricing methodology is a valuable model for bringing transparency to production costs across regions and supporting livelihoods.
Fairtrade’s core pricing components include:
Fairtrade Minimum Price The Fairtrade Minimum Price is the guaranteed minimum price that producers must be paid for their product. If the global market price falls below this, buyers must pay the Fairtrade Minimum Price to protect farmers from losses. If the market price is higher than the Minimum Price buyers must pay the higher market price. The Fairtrade Minimum Price is based on the average costs of sustainable production.
Fairtrade Premium An extra sum of money paid on top of the minimum price that producers can invest in their communities or business projects of their choice. The Fairtrade Premium remains at USD 1 per box. In 2024, Fairtrade banana producers earned more than €36.4 million in Premium, an increase of 3.4 percent from 2023.
Living Wage Reference Price. This is the price per box of bananas needed to enable all workers on a plantation to earn a living wage. It is calculated based on living wage benchmarks published by the Anker Research Institute. These prices serve as a benchmark for the entire industry. The Living Wage Reference Prices were also updated following the new Minimum Prices for bananas and the updated living wage benchmarks. See table here.
Fairtrade Living Wage Differential. An additional voluntary contribution commercial partners may pay in addition to the Fairtrade Minimum Price and Fairtrade Premium to ensure that each banana box purchased under Fairtrade terms contributes to close the Living Wage gap. These payments are distributed to workers by the Premium Committee as Fairtrade Banana Bonus.
Emmerson Aguirre, President of Asociación de Bananeros de Colombia (Augura), Colombia, explained that pressures facing the banana sector are overarching and global. “We are not simply talking about the margin of one producer... We are talking about the ability to pay decent wages, sustain formal employment, protect the environment, and meet the standards the market demands of us,” he said.
Jose Antonio Hidalgo, Executive President of Association of Banana Exporters of Ecuador (AEBE), added that the demands on the sector are growing as well. “We are also investing heavily in environmental, labour and social sustainability. These are investments we support and believe are necessary, but they are not cost-free,” he said.
Fairtrade continues to encourage all actors in the supply chain - producers, exporters, traders, retailers, government authorities, and civil society organisations - to promote fair prices and fair trade to improve the livelihoods of banana farmers and workers.
Learn more about Fairtrade and its works in bananas here.
Fruit Attraction 2026 is the meeting point for fruit and vegetable professionals from all over the world. Organised by IFEMA MADRID and FEPEX, it will run from 6 – 8 October. Fairtrade’s stand can be found Pavillion 12c 11 (Hall 12).