The Fairtrade Premium continues to benefit farmers and their communities around the world, according to its global certification body, Fairtrade International.
The premium is an additional amount on top of the selling price which is paid to producer organisations who then democratically choose how to invest this in their business and communities.
The 2024 Monitoring Report, which examines data from 2022, shows that the Fairtrade Premium received by producer organisations for Fairtrade’s top seven products – banana, cocoa, coffee, cotton, flowers, sugar and tea – totalled €210m (£181m), while the premium for the minor products topped €12m (£10m). The total marks a 10% increase from the previous 12 months.
As of the end of 2022, 1,910 producer organisations were Fairtrade certified, including 1,563 small-scale producer organisations (including those certified for contract production) and 347 larger farms that depend on a hired workforce (known as hired labour organisations). These organisations were made up of 1,848,268 farmers and 197,118 workers.
“The small-scale producer organisations invested 36% of their Premium into improving production and farming practices, such as building processing plants and warehouses, as well as purchasing farm materials for members,” says Fairtrade International.
“Another 23% was spent on financial benefits for farmers, whether direct cash payments to top-up incomes or credit services. Meanwhile, workers on Fairtrade-certified plantations allocated 75% of their Premium into social investments, including education and housing. Another 15% was invested in financial benefits for workers and their families.”
In addition to the Fairtrade Premium, the report includes a full set of data about producer organisations and their farmer members and workers, as well as the global production of each product, land area, and regional breakdowns.
For the first time, the monitoring report includes information about organic sales of the six largest Fairtrade products (excluding flowers, for which there is no organic category). Sixty-four per cent of the 231,188 metric tonnes of Fairtrade coffee sold by producers in 2022 was organic, while 63% of the 730,176 metric tonnes of Fairtrade bananas sold were organic. In addition, organic cotton made up half of all cotton producers’ Fairtrade sales.
