How Fair Trade Coffee Premiums Work (and Where the Money Goes)

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Fair Trade Certified green coffee from Balzac Brothers

So far in 2026, Balzac Brothers' Fair Trade Certified coffee purchases have generated $34,324.80 for producer Community Development Funds. That number comes from one simple mechanism: a premium paid on every pound of Fair Trade Certified coffee, on top of the price of the coffee itself.

Here's how that premium works, who decides how it's spent, and what it means if you're a roaster buying Fair Trade Certified green coffee.

What is the Fair Trade premium?

When an importer buys Fair Trade Certified coffee, it pays the agreed price for the coffee plus a Fair Trade premium of $0.20 per pound. That premium doesn't go into the general price of the coffee. It goes into a Community Development Fund held by the producer organization, usually a cooperative of smallholder farmers.

The math adds up quickly. Our 171,624 pounds of Fair Trade Certified green coffee purchased so far this year, at $0.20 per pound, is where the $34,324.80 comes from.

Premium vs. minimum price

Fair Trade has two separate protections for producers, and they're easy to mix up:

  • The minimum price is a floor. If the coffee market falls below it, buyers still pay at least the minimum, which protects farmers from the worst of a price crash.
  • The premium is always paid on top, no matter where the market is. It's earmarked for community and business investment rather than individual farm income.

Certified organic coffee earns an additional organic differential on top of both.

The best part: we don't decide how it's spent

Producer organizations democratically decide how to invest their Community Development Funds, based on what their communities need most. That decision belongs to the cooperative members, not to the importer or the roaster.

Those funds support projects like:

  • Education and scholarships
  • Healthcare and dental services
  • Resources for working mothers
  • Infrastructure and community improvements
  • Farm improvements and other investments chosen by cooperative members themselves

For us, Fair Trade has always been about more than a certification or a label. It's one of the ways our coffee purchases create additional value at origin and support the communities behind the coffees we import.

Our Fair Trade purchases so far in 2026

  • 171,624 lbs of Fair Trade Certified green coffee purchased
  • $34,324.80 generated for producer Community Development Funds

And we still have a few months to go. Here's to seeing what we can do together by the end of 2026.

What it means for roasters

When you buy Fair Trade Certified green coffee from us, your purchase is part of that total. The premium is built into the price, so supporting producer communities doesn't take any extra paperwork on your end.

If you plan to put a Fair Trade seal on your own bags, you'll need to work with the certifier on your own licensing. We're happy to help with the documentation you need for the coffees you buy from us.

Looking for more certified options? Browse our current offerings, request samples of any Fair Trade Certified lot, or read more stories from origin in Origins & Impact.

October is Fair Trade Month

Fair Trade Month is a chance to celebrate the people and communities behind the products we enjoy every day, and the impact our purchasing decisions can have along the way. Want to be part of what we can accomplish next? Reach out to our team to see what Fair Trade Certified coffees we have available.

Find a Fair Trade Coffee