Cafédirect: Fairtrade pioneer

In 2003, Cafédirect became the only major brand to guarantee Fairtrade tea farmers a minimum price for their tea.

In 2007, we worked directly with our farmers to introduce an improved pricing policy to provide additional support when market prices drop. As a result, we increased our minimum price by 8%, and including the Fairtrade premium, paid on average 47% over and above market prices.

In 2008, we again sat down with our tea partners and are pleased to announce a further refined tea pricing policy which reflects increases in farmers’ cost of production and exemplifies our commitment and leadership in creating change. Our pricing structure adapts to changing market conditions and is meant to help growers when they need it most.

Paul Rodin, Head of Supply Chain at Cafédirect took part in the 2008 consultation process.

“We worked with our tea partners to develop a better way of buying tea. Now we pay more for our tea when our farmers need it the most - when tea prices are low. Our new structure means we pay extra when prices are low, helping our tea partners cover their costs of production. We also reward for quality to create incentives for farmers to keep improving their tea even during tough times.”

In 2008, the Fairtrade Labelling Organisation (FLO) followed our lead and introduced a Fairtrade minimum price for tea. We are proud of the fact that our minimum tea pricing policy, created five years prior helped to create a worldwide minimum price for Fairtrade tea.

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