The amount of Fairtrade Premium – the extra sum of money, paid on top of the selling price that farmers or workers invest in projects of their choice – continues to rise. This has enabled producers in many countries to drive changes in their communities. An example of this is the usage that farmers in Honduras are making of the Premium to pave their way towards a sustainable future.

Overall, Fairtrade farmers and workers shared an impressive €117 million in Premium payments in 2014-15, an increase of ten percent on the previous reporting period. The Fairtrade premium is a bonus payment made to organizations based on their sales, which they can use to benefit their organization and their community.

Not surprisingly, the crops which reported the biggest rises in volume sales – coffee, tea and bananas – generated the biggest Premiums. They accounted for nearly 80 percent of the total. Coffee alone accounts for more than €51 million of Fairtrade Premium receipts – that’s 43 percent of the global total.

The increase in Premiums meant that, in 2015, each Fairtrade producer organization received on average nearly €110,000 – or €81 per farmer or worker. That’s up by 14 percent.

The Premium was invested in a wide range of projects including better production facilities, training, health care, education, preserving and protecting the environment.

Crucially, for the lowest paid workers, it was also used to top up their wages. Fairtrade’s Hired Labour Standard allows up to 20 percent of the Premium to be used as cash payments (50 percent in exceptional circumstances).

Source: CODIMPACT monitoring data set 2015


Premium paves the way forward in Honduras +