Fair Trade USA Raises Their Bar

Last week, Fair Trade USA announced it is raising the guaranteed minimum FOB price for Fair Trade certified organic washed Arabica coffee to a level nearly equal to that of Fairtrade International, also known as FLO. 

Back in 2023, the two Fair Trade certification bodies went in different directions. FLO raised its minimum for organic washed Arabica to $2.40/lb, while Fair Trade USA chose to keep its corresponding minimum at $1.90/lb. These totals include the organic differential and Fair Trade premium. 

At the time, that difference was significant enough for Fair Trade certified cooperatives at origin and certified roasters in consuming countries to take sides, choosing which certification body to work with and creating messy work for importers who needed to follow two different sets of rules. 

The rise in the “C” market has since made those differences less consequential to actual transaction prices, as the market has been well above either system’s minimum. 

Meanwhile, in recognition of higher production costs, FLO announced an increase that brings its minimum total for organic washed Arabica to $2.60/lb for new contracts signed on or after December 1, 2026. Last week, Fair Trade USA announced it will raise its corresponding total to $2.50/lb, just 10 cents below FLO’s. That change applies to new contracts signed on or after February 1, 2027. 

Both systems will use a $2.00/lb base minimum and a 20-cent premium. The remaining difference is the organic differential: 40 cents under FLO and 30 cents under Fair Trade USA. 

For roasters of Fair Trade certified organic coffee, the important distinction is that raising the minimum does not necessarily mean producers are receiving more. Under current market conditions, the higher floors alone do not generate additional payments. The organic differentials and premiums remain in place, but neither is increasing with this announcement. 

For the new base minimums to come into play, the applicable market price would need to fall below $2.00/lb, or 200 on the “C.” Until then, the practical benefit is protection against a future downturn rather than an immediate increase in producer income. These are FOB prices paid at the export level, not amounts paid directly to individual farmers. 

There is still value in a higher floor. How much value it delivers will depend on where the market goes and how much coffee producers sell under certified terms. 

Royal has long championed the organic movement, and more than half of our inventory is certified organic. Explore our organic spot offerings, ready for your next roast.  

Thank you for your continued support of Fair Trade organic coffee, whatever certification system you run with!