Coffee Pricing and Economic Injustice: Why Fair Pay for Farmers Still Matters in 2026

Pictured at top: Mario Villano on his farm on a small hamlet of Pacaybamba in the Incawasi Valley, Peru.

After another year of dramatic swings in global coffee prices and mounting pressures from climate disruptions and supply chain volatility, the call to pay farmers what they truly deserve has never been clearer. At Wonderstate, we know that ethical pricing isn’t just a statement, it’s a commitment we put into action.

This year we’re increasing our minimum price paid to farmers by $0.05, bringing our floor to $3.20 per pound for all coffees we purchase. This increase reflects rising costs on the ground, greater climate risks, and an unwavering belief that farm-level partners should benefit from (not be crushed by) the realities of today’s market.

Why this matters: Coffee prices aren’t translating to farmer well-being

Global coffee prices reached multi-year highs in 2024 and into 2025, largely driven by adverse weather conditions that damaged harvests and constricted supply. The Food and Agriculture Organization reported a nearly 40% surge in world coffee prices in 2024 alone due to climate-related disruptions across key producing regions.

Despite this, the system that determines what farmers earn is still rooted in a commodity market that rarely reflects the true economic and environmental costs of producing coffee. For decades, farmers have stayed locked into pricing structures that fail to cover the cost of production, let alone provide a living wage.

Producers of San Fernando Coop. Inkawasi, Peru.

A broken system

Even with recent price spikes, income for many coffee producers remains precarious:

• Commodity markets still operate independently of production costs, creating boom-and-bust cycles that leave farmers vulnerable when prices fall.
  

• Climate change increases costs and risk on farms by reducing yields and increasing disease pressure.
  

• Farmers lack leverage in the supply chain, often selling into markets where intermediaries capture the majority of profits.

These systemic imbalances aren’t just an economic failing, they’re an injustice. And without meaningful change, we risk not only the livelihoods of farmers but also the future quality and availability of the coffee we love.

Sergio Caro and family on their farm, Los Pinos, Colombia.

Our approach: Consistency, respect, and shared prosperity

Since setting our first minimum price guarantee in 2017, Wonderstate has increased it every year by $0.05 per pound, regardless of where the commodity market sits. In years when the C-market rises high, that floor may sit below it and when the market inevitably dips again, our guarantee provides vital stability and predictability to our producers.

This year’s minimum of $3.20 per pound continues that tradition of steady, meaningful increases, rooted in the reality of what it truly costs to grow, harvest, and process coffee responsibly.

Many of our partner producers are paid well above this minimum because of the unique quality and character of their coffees. But no producer we work with is ever paid less than this floor, and that’s by design. Equitable pay isn’t something we reserve for select relationships, it’s the baseline for all of them.

Producers in San Miguel, Guatemala.

More equitable pricing means a healthier coffee future

Ensuring that farmers earn an income parallel to their contributions isn’t just altruism, it’s smart business for everyone in the value chain. When farmers can:

• Invest in climate-adapted practices

• Manage debt

• Access direct and transparent markets

• Invest in productivity and quality improvements

they’re better positioned to produce excellent coffee year after year. Fair pay unlocks long-term sustainability for farms, ecosystems, and coffee lovers everywhere.

Coffee is too important to get wrong

At Wonderstate, we believe coffee is more than a commodity: it’s a global community woven together by growers, roasters, baristas, and drinkers. If we want coffee to thrive we must all rethink how we value the work behind every bean.

That starts with paying farmers fairly, not just when markets spike, but all the time. Our minimum price increase to $3.20per pound in 2025 reflects that belief, and underscores our commitment to a more equitable industry.

Thank you for joining us in supporting a coffee world where everyone can prosper.