Revised minimum prices for fair trade bananas
Fairtrade International (FLO) recently revised its minimun prices for bananas. A news release published online cites one of the biggested challenges affecting the price of bananas as the "race to the bottom" between retailers to offer the lowest prices for customers. "These price wars reduce the value of bananas in the eyes of consumers and put pressure on the entire supply chain to keep banana prices low," states the FLO news release. With the additional challenge of increasing production costs and fluctuating market price, the fair minumum price offers stability for producers.
In reviewing the price standards, FLO consulted with 110 certified producers and 52 traders, receiving responses of more than 70 percent. The organization also solicited feedback through seven workshops held in four countries, representing nine out of every ten Fairtrade certified banana producer organizations.
The new minumum prices will go into affect January 1, 2014.
Read more about the review and the revised prices at the FLO website.