UPDATE: 10 October 2007.

on 10 October 2007, Fairtrade Labelling Australia & New Zealand (FLANZ), a member of FLO, invited all companies in Australia and New Zealand licensed to sell Fairtrade coffee to have input to the current Fairtrade Labelling Organisations (FLO) review of the Fairtrade Minimum Price for certified coffee.

In late 2006, FLO’s Standards Unit researched the need for changes in the pricing system for Fairtrade coffee. The first result of that research was an increase of US$0.05/lb in the Fairtrade Premium for coffee as well as an increase of US$0.05/lb in the Organic Differential for all Fairtrade coffees. These changes were announced in March became valid as from June 1st, 2007. The research also indicated that the current Fairtrade Minimum Price might not be covering the cost of sustainable production for the average Fairtrade producer. Over the past six months, FLO has collected cost of production information from several producers, and analyzed other third-party studies of coffee costs of production.

Based on this research, the FLO Standards Unit has developed a draft proposal on a Minimum Price increase to present to the FLO Board in November. As part of finalising the recommendations, FLANZ wants to hear from Fairtrade coffee stakeholders in Australia and New Zealand to ensure our voices are heard in these final negotiations.

For more click here.

UPDATE: 20 March 2007.

Following the earlier decision, the FLO Standards Committee determined to increase the Fairtrade premium for coffee from US 5 cents per pound to US 10 cents per pound, and raise the Fairtrade Organic Differential for coffee from US 15 cents per pound to US 20 cents per pound. These changes will take effect from June 1 2007. You can read the full media release from FLO here.

Fairtrade Labelling ANZ welcomes this decision and will continue to participate in the FLO Fairtrade Coffee Price and Premium review process which will deliver a further recommendation in September and October 2007.

PREVIOUS POST: 24 January 2007

On January 23 2007, FLO released the results of its 2 month consultation with Fairtrade coffee stakeholders about changing the price and premium structure for Fairtrade coffee. In particular, the consultation was considering increasing both in response to lobbying by producers from Central and Latin America.

The public statement from FLO available here (15kb, pdf) or you can see it on their website.

Fairtrade Labelling ANZ participated in the consultation process and our position was that the Fairtrade minimum price and premium be increased in 2007, and further increased in another two years (following more research, monitoring and evaluation). The Australian and New Zealand licensees who participated in the consultation also shared this view.

While the FLO Standards Committee has decided not to increase prices and premiums for now, it will be continuing to research and consult on this issue, and Fairtrade Labelling Australia & New Zealand will be actively participating - and ensuring consultation and involvement of our licensees and other stakeholders.

If you would like further information, you can contact Fairtrade Labelling Australia & New Zealand:

• In Australia, Cameron Neil, on audit {at} fairtrade {dot} com {dot} au or +61 2 6125 1504
• In New Zealand, Steve Knapp, on nz {at} fairtrade {dot} org {nz} or +64 9 920 4950

For more detailed information on the Standards Committee decision, you can see the minutes of their meeting and their coffee statement.