Coffee prices on the Intercontinental Exchange have fallen below the US$1/pound level.
That is the first time in 12 years that the C price has been that low.
A spokesperson for Fairtrade America noted that the price had been hovering well below the Fairtrade Minimum Price for nearly a year.
“As the only certification that requires a minimum price, currently US$1.40, for any coffee to be certified, we believe the continued low prices should be a wake-up call for the industry,” said Fairtrade America.
The Fairtrade Minimum Price aims to cover the costs of sustainable production and provide stability to farmers’ organizations and farmers during volatile price drops, but it is not intended to be a long-term support.
Currently, the average farmer organization sells about 34 per cent of their production as Fairtrade even though 100 per cent of their coffee is certifiable.
“It’s important that companies and traders step up to support the 17.7 million small-scale farmers who produce 82 per cent of the world’s coffee,” said Fairtrade America.