In August last year, we raised our minimum payment price, per pound of coffee, for every farmer.

Since Pact began, in 2012, we’ve kept our direct-trade supply chain transparent, aiming to influence others in the coffee industry so we can collectively make it better for farmers. 

So, we thoroughly support the August 2023 increase in Fairtrade Minimum Price for coffee – from $1.40 per/lb to $1.80 per/lb of Arabica* beans.

Prior to August, the Fairtrade base price didn’t cover the cost of production for the average farmer – Fairtrade calculated that, based on the 2021 harvest, the average cost of Arabica production was $1.76 per pound. 

Now, if Fairtrade Arabica is purchased, it will assure farmers that they have a profitable future in coffee and encourage the next generations to continue.  

As coffee farmers face even tougher economic conditions due to climate change, increasing production costs and inflation, this is a significant change for good, and this is down to the fantastic work of the brilliant team at Fairtrade International.

Unfortunately, it’s not compatible with our sourcing model. 

Fairtrade requires that farmers join cooperatives to get certified. This doesn’t work for many of the small, independent farmers we’ve forged strong, mutually beneficial relationships with over a decade - and we’re sticking by them.  

For some of these farmers, becoming Fairtrade certified would be too costly, require leaving their farms, and, ultimately, come at the expense of quality.

So we’ve instead raised our minimum price to $2 per pound to cover this increase while recognising the extra $0.20 Fairtrade Premium***. As always, all of this will go directly to the farmer. 

This way, we’re encouraging the pursuit of outstanding speciality coffee, while adhering to the Fairtrade Minimum Price and, in many instances, paying significantly more. 

*Arabica accounts for 80% of Fairtrade coffee sold, and it’s the only species of coffee that we stock at Pact Coffee. 

**Fairtrade International is a separate system from Fair Trade USA, which left the global Fairtrade system in 2011. Fair Trade USA’s minimum price remains at $1.40 per pound of Arabica coffee. 

**An additional sum of money that’s invested in projects to improve productivity, climate adaptation, quality, infrastructure, and community services identified by the farmers and organisations.