Fairtrade to Raise Minimum Coffee Prices Starting December 2026
Key Takeaways
- •Fairtrade's revised Minimum Prices for coffee take effect on December 1, 2026, following a year-long review process that included stakeholder consultation and market analysis.
- •Washed Arabica beans will rise 11 percent to US$2.00 per pound, while natural Robusta beans increase to US$1.30 per pound, with additional increases for natural Arabica and washed Robusta varieties.
- •The Fairtrade Minimum Price acts as a global floor that only activates when prevailing market prices fall below the established threshold, otherwise buyers pay the higher market rate.
- •Fairtrade-certified cooperatives also receive a separate per-pound Fairtrade Premium dedicated to community and producer development projects such as infrastructure, education, and farm improvements.
- •Coffee industry prices have not fallen below US$2.00 per pound since March 2024, according to Fairtrade.
Fairtrade, the non-profit certification organization that sets standards for ethical trade with farmers and workers, has announced an increase to its Fairtrade Minimum Prices for coffee. The revision is designed to strengthen price security for coffee producers facing rising production costs and mounting climate-related pressures across coffee-growing regions in Latin America, Africa, and Asia.
The updated pricing follows a year-long review process that incorporated data collection, stakeholder consultation, and market analysis across the coffee value chain. The new minimum prices apply to both Arabica and Robusta coffee — the two primary commercial coffee species grown worldwide.
Effective from 1 December 2026, the Fairtrade Minimum Price for washed Arabica beans will rise to US$2.00 per pound, representing an 11 per cent increase. Natural Robusta beans will see a 10-cent-per-pound increase, bringing the floor price to US$1.30 per pound. Additionally, natural Arabica Fairtrade Minimum Prices will increase by 20 cents per pound, while washed Robusta prices will rise by 10 cents per pound.
"Fairtrade's price review process is unique in the coffee sector, as the only methodology that provides an essential understanding of the various stakeholders in the value chain — from farmer cooperatives to roasters to brands and retailers — as well as civil society pushing to create a thriving coffee system," said Colleen Anunu, Fairtrade International's Senior Advisor for Coffee.
The Fairtrade Minimum Price functions as a global floor price, serving as a safety net designed to protect coffee farmers from drastic price declines during periods of market volatility. The mechanism only comes into effect when prevailing market prices fall below the established Fairtrade floor. When market prices exceed the Fairtrade Minimum Price, buyers pay the higher market rate. In addition to the Minimum Price, Fairtrade-certified cooperatives receive a separate Fairtrade Premium — a per-pound payment directed toward community and producer development projects such as infrastructure, education, and farm improvements.
According to Fairtrade, the coffee industry has not seen prices fall below US$2.00 per pound since March 2024.
Source: Global Coffee Report