FLO Announces a Raise
Posted by matt at about 2pm on Friday March 23, 2007
FLO announced Tuesday that it is raising the "social premium" $.05 for conventional fair trade coffee, making the new minimum plus social premum $1.31 where previously it was $1.26. They also will raise the "organic differential" $.10 to make the FT/organic minimum plus differential $1.51, up from $1.41. This is a positive step that goes into effect June 1st.
However, the base mimimum price is still $1.21 for fair trade coffee. The idea with the "premium" is that it should be "extra" cash leftover after producers are paid for the value of their coffee and labor to be invested in community infrastructure. The "organic differential" is a sum paid to help cover rising costs of organic production and certification. In order for these "premiums" to work, we have to assume that growers are making money beyond the cash they need for basic survival. We have heard from farmers that this is not always the case.
The FLO standards committee will be studying this into the summer and will make a new recommedation in September. Concerned people please continue to hammer on the fact that costs all around have gone up in the past 12 years and that the mimimum base price, along with the premiums, needs to be raised. Also consider suggesting that this review be repeated often with transparency and democratic participation from diverse stakeholders. We need a producer-led democratic process in the FLO and TFUSA systems. Click here to contact FLO.
We are moving forward.
happy?
Hello Just Coffee,
It kind of seems like you guys are never satisfied. Let's celebrate this raise, not pick it apart. It IS a step forward!
happy, but not satisfied
Hey There:
We are pleased with the move, but it is one of many steps that need to be taken to make fair trade what it needs to be. Fact is that the minimum is still too low. That said, let's see what happens this fall. The point is to not stop pushing here. FLO is responding to the dialogue, so we need to keep engaging.
In the meantime, my focus is on democratizing all of these processes. There is too little institutionalized participation in the FLO/TF system for growers, mission-based businesses, NGOs, and other folks. We have to change this.
Like it or not, FLO and TF are making decisions that reflect our entire movement. In order to do that with any credibility, they need to open up their processes in a systematic way.
That's my happy take.
-Matt
It means Good News
The raise of the fair trade coffees prices is a step forward according to the conventional coffee price in the market and it is going to encourage small coffee farmers to keep in their cooperatives rather than quitting. I think that the decision of incresing the fair trade price took too long but it´s done at least.
Congratulations, it is a goal.......
Eduardo Lopez Rosse A
Potosí, Bolivia
"Premiums"??
hi there JC crew,
one question...what's the deal with the 'premiums'? why does flo raise the 'premiums' instead of the 'actual price'? in my experience so far in guate, there ARE NO PREMIUMS, BECAUSE ALL THE MONEY JUST GOES TOWARDS TRYING TO FEED MOUTHS. i guess in some places they actually put the 'premium' amount aside for social projects, which i could see the sense in of course, but again in my experience it's a complete fiction. and it's also just kind of ludicrous, for flo to raise their prices five measly cents for the first time in nearly 20 years, and then affect to tell the growers how to use that money.
the happy take is that there are folks like the JC crew (you guys rock!) who know better than to be happy and satisfied with a measly five cents from the smug and bloated fairtrade corporate fatcats.
thanks for letting me rant,
much love and solidarity
Tim Kantz
Cafe Conciencia representin' in Guate