Answer to Question #208495 in Management for Mbali

Question

What is meant by a fairtrade minimum price (floor price) for coffee beans?

Answer 1

Fairtrade minimum price refers to the minimum amount of money that coffee beans producers are paid by the buyers for coffee beans to be certified against Fairtrade standards. The Fairtrade minimum price for coffee beans covers the average cost of production and allows producers to access their product markets. This price protects the producers from selling their products at a loss.