Milwaukee’s Kickapoo Coffee Roasters have announced their new minimum price guarantee, setting an above-average lower limit to the amount they will pay to the farmers for green coffee. In a press release posted to their website, Kickapoo stated they will pay no less than $2.75 FOB (free on board, a price that includes all steps of production leading up to export: farming, processing, bagging, etc), which according to the release is “currently the highest published minimum price [they] are aware of in the industry.”
The press release notes that the price of coffee is set by the commodity futures market and has remained static for the last 40 years. Adjusting for inflation, the price paid for coffee in 1975 would equal $6-7 in today’s dollars. The new $2.75 FOB minimum is just part of an ongoing strategy that works towards providing fair pay to farmers:
Kickapoo notes that this new minimum isn’t revolutionary and that price is only one component of a “sustainable supply chain-community infrastructure,” but that it is a step in the right direction toward bringing prices up to sustainable levels for farmers.
Kickapoo Coffee joins a growing number of roasters sharing their green prices to consumers. Minimum price guarantees are another step in promoting transparency and increasing wages for farmers to sustainable levels.
The full press release can be found here.
Zac Cadwalader is the news editor at Sprudge Media Network.
*top image via Kickapoo