The ongoing conflict in the Middle East is increasing uncertainty in global markets, adding further strain on farmers worldwide, including farmers in the Fairtrade system.  Already dealing with climate change, volatile prices, and expanding regulatory requirements, these farmers are now facing rising costs, especially for shipping, fertilizers, and energy. At the same time disruptions to trade flows and supply chains are heightening production risks and financial pressure.

Fairtrade International is closely monitoring the situation and remains in direct contact with its producer organisations. In the fresh sectors, such as bananas and flowers producers are under heightened stress due to rising freight costs, input shortages, and reduced access to key export markets. As a result, some producers are unable to sell a significant share of their output, while traders face difficult price negotiations with retailers.

In other sectors, effects are emerging more gradually. Coffee, cocoa, and sugar are also seeing higher costs, but impacts are expected in upcoming harvests. In cotton and textiles, rising energy and logistics costs are pushing up prices across the value chain, with some processing facilities struggling to remain operational.

Furthermore, conventional Fairtrade producers have additional challenges when it comes to fertilizers. A Fairtrade analysis found that from October 2025 to March 2026, global fertilizer prices shifted from relative stability to a sharp surge, with the World Bank index rising about 31% overall and jumping 26% between February and March alone.

Nitrogen fertilizers led this increase, driven by high natural gas costs and reduced European production. Phosphorus prices rose more gradually due to steady demand and export restrictions, while potassium remained comparatively stable with only slight increases despite supply constraints. Blended NPK fertilizers followed a similar pattern, with continued upward pressure into 2026, reflecting the broader market spike.

In times like these, the Fairtrade model, with the Fairtrade Minimum Price and Fairtrade Premium, plays a critical role in providing stability, transparency, and protection for producers in order to distribute risk and costs more evenly throughout the supply chain while supporting producer livelihoods.

Scheduled price reviews for core products such as coffee and bananas will proceed as planned. However, given the current volatility and uncertainty in cost developments, broad or ad hoc price adjustments to the Fairtrade Minimum Price would challenge the credibility of our pricing system.

Fairtrade welcomes the efforts of the European Union to de-escalate the situation and restore stability, and we remain hopeful for a peaceful and lasting resolution.