Fairtrade Minimum Price
Fairtrade Minimum Price
The Fairtrade Minimum Price (where it exists) is the minimum price that must be paid by buyers to producers for a product to become certified against the Fairtrade Standards.
It is a floor price which covers producers’ average costs of production and allows them access to their product markets. The Fairtrade Minimum Price (FMP) represents a formal safety net that protects producers from being forced to sell their products at too low a price when the market price is below the FMP. It is therefore the lowest possible price that the Fairtrade Payer may pay to the producer.