IELTS Reading: Fairtrade Banana Trade and Pricing
Fair trade and ethical shopping
Answers and an explanation for each question appear once you add this activity to your own library.
Fairtrade Bananas: Prices, Premiums, and the 2026 Update
Analyse official press release data, evaluate hedged arguments, and practise exam-style inference questions.
📌 How to use this lesson
For Teachers:
Set an 18-minute timer for students to read the passage and answer all 10 questions independently. Have students check their answers using the detailed explanations at the end to review evidence from the text.
For Learners:
Read paragraphs A to D carefully first and highlight key details and figures before answering the questions. Complete questions 1 to 10 in order, paying attention to careful phrasing and writer opinions.
Example Pattern
"Last week the manager of our shop was glad that the new supplier delivered the boxes on time."
Reading Passage
Length: ~230 WordsFairtrade Bananas: Prices, Premiums, and the 2026 Update
Fairtrade International sets a Minimum Price for Fairtrade bananas. This is the lowest price that buyers must pay to producers. If the market price is lower, buyers pay the Minimum Price, and if the market price is higher, they pay the market price. Fairtrade says that the Minimum Price is based on the average costs of sustainable production.
In October 2026, Fairtrade International announced a rise in its banana Minimum Prices. It says that the average Minimum Price went up by 5.6 percent at Ex Works level and by 3.9 percent at FOB level. These are two price levels in the banana trade. The new prices apply to contracts that begin on 1 January 2027. Fairtrade says that producers face extreme weather, pests, diseases and rising costs.
Buyers also pay a Fairtrade Premium of 1 US dollar per box. Producers can use this extra money for projects in their community or in their business. In 2024, banana producers earned more than 36.4 million euros in Premium, which is 3.4 percent more than in 2023. A 2024 Fairtrade release says that 265 Fairtrade banana plantations employed more than 35,700 workers.
These facts seem to show that Fairtrade bananas have a protected lowest price and an extra payment, and I think the Premium total suggests that the scheme moves a lot of money to producers. However, the price rises are averages, and the facts come from Fairtrade itself, so they do not show what other groups think or what shoppers pay in the shop.
🏷️ Key Trade Terms (Click to Listen)
Questions 1–3
Do the following statements agree with the information given in the Reading Passage?
1. Buyers pay the market price if it is higher than the Fairtrade Minimum Price.
2. The new Minimum Prices announced in October 2026 became effective immediately in the same month.
3. Shoppers in supermarkets paid higher prices for Fairtrade bananas in late 2026.
Questions 4–5
Choose the correct letter, A, B, C or D.
4. What is stated as a reason for the October 2026 price increase?
5. What is the writer's view regarding the total Fairtrade Premium earned in 2024?
Questions 6–8
Which paragraph contains the following information? Choose the correct letter, A–D.
6. Details about percentage increases at two specific trade price levels.
7. A discussion of limitations regarding who provided the figures and what they do not reveal.
8. Figures showing total Premium earnings and the number of workers employed on participating plantations.
Questions 9–10
Complete the summary below. Choose NO MORE THAN TWO WORDS AND/OR A NUMBER from the passage for each answer.
Fairtrade Premium and Market Evaluation
In addition to the Minimum Price, banana buyers pay a Fairtrade Premium of 1 US dollar per box. In 2024, banana producers earned over 36.4 million euros in Premium funds. This total represented a growth of
percent compared to the previous year. Furthermore, the writer observes that the reported price increases are merely
, meaning they do not necessarily reflect the opinions of external groups or what retail consumers pay in stores.
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