EP 958 – Part 3 of 5: Smallholder Coffee Farmers and “High Prices” — Barely Breaking Even | Ana Donneys
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This episode is brought to you by The Honduran Coffee Alliance, connecting Honduran coffee producers with global buyers in a fair, sustainable, and commercially viable way.
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Email: sean@hondurancoffeealliance.com
Episode Description
This is Part 3 of a five-part series, The Reality of Being a Smallholder Coffee Farmer in Volatility, with Ana Donneys from Cafe Primitivo in Colombia.
In this episode, we examine what “high prices” actually mean at farm level.
After experiencing yield reduction, rising input costs, currency devaluation, and increasing financial pressure, Ana explains that recent price levels have not translated into meaningful profitability. For many producers, these prices have barely covered cost of production.
We explore the role of currency exchange in shaping margins, including how contracts signed in US dollars interact with expenses paid in Colombian pesos. We also discuss the hidden costs of marketing, trade shows, and relationship-building — investments producers must make to sustain direct trade relationships.
The conversation widens into financial market mechanics. Coffee futures pricing is influenced not only by supply and demand fundamentals, but also by hedge fund positioning, margin calls, currency trades, and macroeconomic forces unrelated to farm production. These second-order financial effects can push prices down even when physical coffee remains scarce.
For smallholder farmers, these shifts are not abstract. They create uncertainty in planning, cash flow pressure, and concern about long-term viability.
Ana closes this episode by stating clearly: these are not high prices. They are prices that barely cover cost.
If we do not separate financial market volatility from farm-level economics, we risk misunderstanding what sustainability truly requires.
Guest links
Instagram: https://www.instagram.com/cafeprimitivo/
Website: https://www.cafeprimitivocolombia.com/
LinkedIn: https://www.linkedin.com/in/anadonneys/