FLO Increases Cocoa Floor Price and Social Premium

Here’s a bit of welcome news. For the first time since 1997, the Fairtrade Labelling Organization (FLO) has increased the minimum fairtrade price for cocoa. Starting January 1, 2011, the minimum price will be $2,000/ton up from $1,600/ton. The social premium will also increase from $150/ton to $200/ton.

FLO is the global umbrella organization for all national fairtrade certifiers. It sets the fairtrade standards for the wide variety of goods now available on fairtrade terms. The increase in cocoa prices is long overdue as input costs of farmers have increased over the past thirteen years.

On a practical level, the increase of the minimum price won’t have any input as the market price continues to hover around $3,000/ton. But the increase in the social premium will have an immediate impact as cocoa farmer cooperatives will receive the social premium irrespective of the world market price.

Twin Trading is 25 Years Old

Twin Trading is not well known in the U.S., but it should be. Since 1985,  it has done more than any  agency to make fair trade real for ordinary farmers around the world. Starting with importing the first fair trade coffee to the UK to creating CafeDirect to helping found Kuapa Kokoo to launching Divine Chocolate, it has been a powerful force in support of fairtrade world wide. Check out this nice tribute on the Divine Chocolate Blog.

Cadbury Announces Plans for first Social Premium Disbursement

Cadbury, the latest convert to fairtrade, announced on Monday its plans for disbursing the first installment of its social premium. The funds, £500,000 ($751,215), will be invested in projects determined by the farmer cooperatives that supply the cocoa. One of the beneficiaries, the Kuapa Kokoo cooperative, will use its share to improve health services for its members through the deployment of mobile clinics and farmer extension services.

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Green & Black’s Goes All Fairtrade

Green & Black's

Green & Black’s has just announced that it will source all commodities from fairtrade suppliers. That’s wonderful news and a boost to fairtrade producers worldwide. In 1994, Green & Black’s introduced the first fairtrade chocolate bar, Maya Gold, to the UK and later to the world. The beans for that bar are sourced from the Toledo Cocoa Growers Association, an organization I have covered on this blog before.

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