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Consumers and coffee/supermarket buyers will want to know just how much extra fairly traded coffee will cost. The extra cost of course depends on the fair price compared to the world price, which varies greatly.
The table below shows the differences between the world price of green, unwashed mild arabica beans (New York C market) and the fair trade label price in Canadian cents or dollars.
These figures are based on an exchange rate of C$1.35/US$, on a Fair TradeMark Canada/TransFair minimum price of US$1.26/lb and a premium of US$0.05/lb when the world price is over US$1.26. Also included are licence fees of C$0.13 per pound.
The per cup cost is based on using 7 grams of coffee per 8 ounce cup (standard coffee industry cupping standards).
A 300 gram package of roasted and ground coffee is the industry standard in Canada.
Per lb and 100 lb bag costs are for green beans, and per cup and 300 gram costs are for roasted and ground coffee.
These costs are for the raw material or green beans only. Some buyers may charge extra to cover the costs of buying from new (to them), small producers, for quality or organic differencials or for extra promotional costs needed to open a new fair trade market.
* World price level between 1988 and 1994
** Current world price level (November 1996)
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