The Fairtrade Minimum Price ensures producers receive prices that cover the average cost of setting up a sustainable carbon project. It is calculated according to the project type and related costs and is the starting point for price negotiations between the producer and/or the Facilitator with the Fairtrade buyer. The selling price may differ from the minimum price, depending on how much a buyer is willing to pay at the end of the value chain.

You can read more about this on the Fairtrade International website: