What does farm gate mean in coffee pricing?

Farm gate refers to the price paid to a producer for their coffee at the point of sale at the farm itself - before any transport, processing, export costs, or intermediary margins are added. It represents the most upstream price point in the supply chain and is the figure most directly relevant to the farmer's actual income.

Farm gate pricing has become an important transparency metric in specialty coffee. Many direct trade and relationship-sourcing frameworks publish farm gate prices alongside their green coffee offerings, allowing buyers and consumers to understand what portion of the final retail price reaches the producer. A high FOB or retail price doesn't necessarily mean a high farm gate price - the gap between what a roaster pays and what the farmer received can be significant.

Comparing farm gate prices across different supply chains helps evaluate the economic fairness of sourcing models. A coffee bought at $1.50/lb farm gate tells a different story to one bought at $3.50/lb farm gate, even if both appear on offer sheets at similar FOB prices.