Fair Trade USA is to increase its minimum price and premium for cocoa by 20 per cent as of 1 October 2019.
The decision follows a lengthy consultation and evaluation process. The minimum price will increase from US$2,000/tonne to US$2,400/tonne and the premium from US$200/tonne to US$240/tonne for conventional cocoa.
For organic cocoa, the fair trade price will be US$300 above the market price or the fair trade minimum price, whichever is higher at the time of sale, and the premium will increase from US$200/tonne to US$240/tonnes.
Fairtrade America has also announced the same increases in cocoa minimum price and premium.
“The current fair trade minimum price and premium for cocoa are not sufficient to protect farmers from extreme poverty,” said Thibault de Chatellus, Vice President, Consumer Packaged Goods at Fair Trade USA.