(Business in Cameroon) - In January 2022, the export prices of local banana producer Plantations du Haut Penja (PHP) will increase. This price increase is the result of a decision taken by Fairtrade International’s certification body to raise the minimum prices charged by banana exporters, who are members of its fair trade movement.
According to Ecofin agency, which reported this information, on the African continent, this decision will mainly benefit Ghana and Cameroon. In Cameroon, PHP is, since January 2013, the only one of the three local banana producers to have a Fairtrade certification that experts present as "the most demanding international trade standard."
Specifically, as of January 2022, the minimum free onboard price (FOB price when the operator takes charge of products till they are loaded on exporting vessels) for a Fairtrade certified operator will increase from €8.75 to 9.3 per standard boxes of 18.14 kilogram of banana while the EXW price (when the producer just delivers products and the buyer covers transport costs) will rise from €6.45 to 6.8 for the same boxes.
According to Fairtrade International, this revaluation of export prices is aimed at mitigating the impact of the coronavirus pandemic on transport costs, which peaked in 2020. Ultimately, this decision will help PHP and its 6,000 employees generate more revenues.
Indeed, credible sources reveal, the products of Fairtrade certified companies cannot be bought below the minimum prices set by the organization. Also, the buyer pays a social bonus to the certified company’s employees through a body representing the said employees.
Brice R. Mbodiam