Oakland, CA — Fair Trade USA reports it is increasing its minimum price and premium for cocoa by 20 percent starting October 1, in an effort to move farmers closer to a living wage, and reduce extreme poverty and childhood labor in growing regions.
Minimum prices will be set at $2,400 per metric ton for conventional cocoa, while organic cocoa’s fair trade price will be $300 above market price or the Fair Trade minimum price (whichever is higher at time of sale). Premiums for both types of cocoa will increase for $200 per metric ton to $240, Fair Trade USA reports.
“The current fair trade minimum price and premium for cocoa beans are simply not sufficient for farmers to maintain a safety net that protects them from volatile cocoa market prices and extreme poverty, much less to tackle the other issues that our program strives to address – child labor, slavery, and environmental degradation,” says Thibault de Chatellus, vice-president, consumer packaged goods at Fair Trade USA. “The new minimum price and premium will get farmers one step closer to a living income and sustainable livelihoods as cocoa producers.”