Earlier in this series, we discussed what Fairtrade is all about - a global movement that aims to provide better prices and working conditions for farmers and workers in developing countries. At its core, Fairtrade ensures that the people behind the products we enjoy, such as coffee, receive a fair income for their work.

Now, let’s dive a little deeper into the Fairtrade Premium and why this is an important aspect of the Fairtrade model of compensating farmers for their work.

At the heart of every Fairtrade purchase is the Fairtrade Premium—a financial bonus paid to cooperatives that can be used to support their farmers and invest in community development. This is a key reason why we choose to work with Fairtrade cooperatives.

Better prices for products mean improved incomes for farmers, helping them to manage both their households and businesses. Just like us, a fair portion of their incomes goes towards everyday essentials such as food, accommodation, education, and healthcare – and ideally, there are savings for the future, too.

The Fairtrade Premium is crucial because it invests in the long-term health of farming communities. Farmers are empowered to decide how to use the funds, whether for infrastructure, education, healthcare, or environmental sustainability projects. This ensures the premium addresses the unique needs of each community. Beyond better annual livelihoods, the premium enables farmers to strengthen their ability to withstand economic and environmental challenges and build brighter futures for generations to come.

Take the example of the Kabngetuny Farmers’ Cooperative in Kenya. By using their Fairtrade Premium, they’ve invested in their women farmers, providing more opportunities for growth and leadership. The cooperative has also introduced biogas units fueled by cow dung, part of the “Growing Women in Coffee” initiative—a successful example of sustainable farming that benefits both the environment and the farmers. Other cooperatives across Latin America and Africa have used the funds to build better healthcare facilities, improve water access, and invest in local education, uplifting future generations.

This is why the Fairtrade Premium matters. It's an investment in the long-term well-being of farming communities and paves the path for better futures for coffee farmers – today, this season, and for generations to come.