Fairtrade increases its minimum price for bananas

In response to rising export costs and falling import prices which have negatively impacted the livelihoods of producers, Fairtrade, the organization of the sustainable and ethical global trading system, announced an increase in the minimum price of bananas.

 

Fairtrade announces that an average 8% increase in the minimum price of Fairtrade bananas will take effect on January 1, 2022. Contracts for 2022 are currently being negotiated between buyers and producers.

 

According to the organization's reports, banana growers face increased financial burdens due to soaring export costs with a sharp increase in the price of packaging materials and a 60% increase in transportation costs. . The effects of the pandemic as well as the measures underway to protect banana plantations from the devastating effects of the TR4 fusarium fungus have also impacted production costs.

 

But in this negative context for producers, banana import prices plummeted to a record level of less than 10 euros per box, the lowest level for 10 years.

 

"Market prices do not correspond to these costs and decrease instead of increasing. This situation is not sustainable. Fair prices are necessary more than ever" underlined Nicolas Léger, global manager for bananas at Fairtrade. Adding, " The banana industry as a whole must change to make banana cultivation sustainable in the long term".

 

Fairtrade is the only certification system that provides for a minimum price. Fairtrade connects producers, businesses and consumers within a sustainable and ethical global trading system. Fairtrade encompasses 1599 producer organizations across 75 countries and over 1.7 million producers are involved, over 30,000 products are Fairtrade labeled and are for sale worldwide.

 

 

More information about Fairtrade on their website https://www.fairtrade.net/