What is the farmgate price?
| The farmgate price is the price that covers only the producer's costs and profit before exporting. Though we may think of farmgate price as the price of everything that happens until the coffee passes through the gates of the farm (hence the name), there can be quite a lot of variation in what a producer considers to be their farmgate. In other words, the farmgate price may or may not include the cost of transport until an external warehouse, if that is needed, and even the milling of the coffee if the producer has its own warehouse. In other cases (such as in Ethiopia, where smallholders deliver coffee cherries to a washing station, or in Peru, where they deliver parchment to a cooperative's warehouse), it equals the price paid for cherry or parchment upon delivery. At Algrano, we strive to provide insights into the breakdown of these costs. Though we can't track the farmgate price of all Verified Sellers, we offer producers the possibility to communicate their price breakdown on the platform. There are two main situations that might affect the farmgate price on Algrano:
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