the coffee farmer is poor. the price is cheap. whose is it exactly?

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for years I've heard the same stories of my fellow farmers in my area. The fertilizer costs are up, the pay is up, the transport is up. But the price of cherry sold to a steamer is hardly moving meaning.

My current area is Zcherry the highest arabica around Rp10,000-12,000 per kilogram at the national harvest. Sounds good. But to get 1 kg of Zgreen bean requires about 5-6 kg cherry, not to mention simple processing costs. That means that the farmer's side of the target per kg green bean is approaching Rp6000-75000000.

While the same coffee can be sold to the café at the price of green Rp120,000- 160,000 per kg. And the café sells per glass of Rp45000- 60,000, a kilo of coffee can make 60- 80 glasses.

I counted it rough, sharing it back to farmers per glass is about 5-8%. If this isn't a systemic problem, what's it called?

540 6 0

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angka yang lu kasih itu valid. gue coba breakdown layer-nya. dari petani ke pengepul desa biasanya ada margin Rp5.000-8.000 per kg cherry. pengepul ke pedagang besar lagi ada layer. dari pedagang besar ke eksportir green bean, harga udah naik signifikan.

yang paling banyak capture value itu di layer pengolahan dan branding. roaster yang bisa storytelling origin dan jual specialty bisa charge Rp200.000-350.000 per kg green dan margin-nya lumayan. tapi itu karena ada nilai tambah nyata dari roasting, packaging, marketing. yang gak dapat nilai tambah itu di hulunya, petani.

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i'm trying to recalculate it tighter. If 1 kg of green takes 6 kg of cherry @ Rp10,000 is already Rp60,000 just for the materials. Processing wet hull standard Abah plus around Rp8,000- 12,000 per kg green. No fertilizer, pesticides, hard-to-count land amortization. realistically cost at farmers per kg green bean could be Rp7000-75,000 before there was any margin. If you sell it to a Rp80,00085,000, a farmer's clean margin is thin.

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i couldn't agree more if I took the fall. It also carries stock risk, has capital tied up, transport, storage. The exporter costs certification and international compliance is huge. roaster investment in equipment and branding. Each layer has a real cost borne.

The problem is not that there are bad parties, but the risk distribution and the reference is not proportionate. Farmers take the biggest risk (crop failure, weather, pests) but it's the smallest resort.

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which Ulsuh's sister delivered is not mistaken from the perspective of each individual. But judging by the design of the system, this is the problem. Farmers don't have access to real-time market prices, can't resist selling because stock is damaged and needs cash, no accessible credit access.

It's not about anyone being evil. It's about the incentive of a system that's misdesigned. Without any intervention at the level of policy, access to information, and harvesting, the situation won't change just from each other's goodwill.

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i told myself to read this thread and really go down. Every day you buy Rp45rb coffee, you keep sharing it with a farmer that small. I always thought I'd buy expensive coffee. It wasn't automatic.

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someone's made it out of this cycle. Farmers who are in direct trade with roaster or committed buyers can get two to three times the price of puking if they can matininaine quality and there's consistent communication about expectations from both sides. It's not a fairy tale, it's a walking thing.

But I admit it's not easy and it can't skate fast without any intermediaries trying to facilitate. It takes time and there's an early cost to build that relationship.

the coffee farmer is poor. the price is cheap. whose is it exactly?

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