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The FairTrade Labeling
Organization(FLO) sets minimum prices to be paid to the producers
for their products, which provide for living wages and as well as social
& economic development, as
noted on the "What is Fair Trade"
page.
Two different set of fair trade prices are set by FLO - minimum price and a
premium price. The minimum price guarantees the producers a
fair living wage and the premium allows for further social and
economic development. The minimum price is only in effect, if the
international price of a commodity is less than the set minimum price.
Below, are the fair trade prices for various food commodities per lb, as
set by FLO.
| Product |
Fair
Trade Minimum Price
(per lb)
|
Fair
Trade Premium (per lb) |
|
Non-Organic |
Organic |
|
| Cashews |
$2.48 |
$2.68 |
10 cents |
| Cocoa Beans |
73 cents |
89 cents |
9 cents |
| Coffee (Arabica) |
$1.21 |
$1.36 |
5 cents |
| Dried Fruit
(Banana)* |
|
$1.37 |
30 cents |
| Dried Fruit
(Pineapple)* |
|
$4.75 |
34 cents |
| Dried Fruit
(Mango)* |
|
$3.20 |
32 cents |
| Honey |
75 cents |
84 cents |
|
| Tea |
market
price + 25 cents
(market price is approx. $1/lb)
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* Prices for dried fruit are specific to the countries, where the fruit is
coming from and currently only few groups are certified.
If the food commodity is further processed, then the share of the
farmer further decreases, as more of the cost now goes towards processing
and or packaging. For example a 100 g (3.5 oz) of fair
trade chocolate, which normally retails for $3 and up, the
cocoa producer would only get about 10 cents. Fair
Trade Price for other products Apart from the FLO
certification of food commodities, there is no certification
(except one) for other products - handicrafts, manufactured goods,
clothing etc., though there are efforts to certify more of
these products as well. Soccer balls are the only and the first
manufactured product to be recently certified by FLO.
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