A farmer’s income comes from three numbers. They are the market price, the quality premium and the cost of production. Most of the debate sits in the gap between them.
The market price
Most coffee is priced from a futures contract. The price moves every day. A farmer who sells at harvest accepts the price of that week.
The premium
Specialty coffee earns a premium on top of the market. Higher scores earn higher premiums. Some direct trade deals set a fixed price that ignores the market.
The cost
Costs include labour, fertiliser, drying and transport. They rise each year. If the sale price does not rise too, the farm loses money.
| Number | Who sets it | What it covers |
|---|---|---|
| Market price | The exchange | The base value of the crop |
| Premium | Buyer and quality score | The extra for flavour and care |
| Cost | The farm | The money needed to grow it |
What to look for
Ask your roaster how it pays. Good answers name a price per pound or kilogram. Vague answers say “fair” with no number.
Transparent roasters publish what they paid. That is the clearest sign of good faith.
