The minimum price for Fairtrade bananas at ‘ex-works’ level is to increase by an average of 3.6 per cent compared to 2023
Fairtrade is marking one year since the launch of its sustainable banana offer, an initiative aimed at ensuring workers on certified banana plantations across the world earn as a minimum the living wage for their country, whilst helping retailers fulfil their commitments to a sustainable banana industry.
The sustainable banana offer covers wage and price calculation, its distribution, reporting, and third party verification as part of one overall solution.
According to Fairtrade, it includes four core elements – the Fairtrade Minimum Price (FMP), additional cash payments from the Fairtrade Premium, the Living Wage Reference Price (LWRP), and the Fairtrade Living Wage Differential (FLWD), an additional voluntary payment a commercial partner may pay per box of bananas sold that is distributed to workers by the Premium Committee called the Fairtrade Banana Bonus.
Fairtrade has published seven banana origins with Living Wage Reference Prices (LWRP). Cameroon, Ghana, and Nicaragua, join Colombia, Dominican Republic, Ecuador, and Peru (organic bananas only) with Living Wage Referencing Prices that were updated this year.
“Expert knowledge on banana production and wages, many years working with producers on cost calculation, together with banana chambers from producing countries have allowed Fairtrade to collect and validate wage data, and calculate reference prices,” said Silvia Campos, senior advisor, bananas, at Fairtrade International.
“These reference prices are Fairtrade’s contribution to the banana industry that allow producers and traders to negotiate fairer prices and terms of trade, aiming to improve wages of banana workers.”
Campos added that the benefits from the Fairtrade Premium were also making a difference, along with the ”experience and robustness” of Fairtrade’s assurance body FLOCERT that worked to ensure that the benefits reached workers.
Fairtrade stated that it had also updated its minimum prices for Bananas.
The minimum prices for Fairtrade bananas at ‘ex-works’ level will increase by an average of 3.6 per cent compared to 2023 – an increase of between US$0.10 and US$0.85 per 18.14 kg box – responding to the increase in wages by 4.7 per cent and a 2.3 per cent increase in the cost of fuel.
The minimum prices for ‘Free on Board’ (FOB) bananas will increase by an average of 1.6 per cent per box as consequence of the cost reduction of the carton box by 9.5 per cent.
The new minimum prices come into effect on 1 January 2025.
”Thanks to this offer, businesses can play their part in achieving living wages in their banana supply chains,” Fairtrade outlined.
”Companies who work with Fairtrade can contribute towards achieving decent wages by maintaining and growing their sourcing commitments to progressively work towards the long-term objectives of this offering and make decent livelihoods the norm.
”For the more than 35,700 workers employed by 265 Fairtrade banana plantations this could make a significant difference,” it added.
