The Disconnect: Why the C-Market Ignores Reality in Colombia

If you look at the coffee news today, you might see fluctuating stock charts. But if you look out the window here in Colombia, you see a very different reality.

Recently, the Colombian government announced a drastic increase in minimum wages—confirmed at a massive 23.7% rise. While this is a move intended to support the workforce, it triggers a chain reaction that every coffee roaster needs to understand.

The Domino Effect on the Farm

Coffee farming is labor-intensive. When the minimum wage goes up, it’s not just the pickers who cost more. The entire ecosystem becomes more expensive:

• Labor: The cost to harvest cherries jumps immediately.
• Inputs: Prices for fertilizers, tools, and construction materials for drying beds rise in parallel.
• Logistics: Transporting coffee from the farm to the dry mill costs more due to fuel and driver wages.

The C-Market Trap

In a normal economy, when the cost of production goes up, the selling price goes up. But coffee is not a normal economy.

Here lies the fundamental problem: The C-market price (New York Exchange) does not care about Colombian inflation.

The global stock market price is determined by traders, speculation, and global supply/demand forecasts—not by the actual cost of living in Pereira or Huila. This means that while the Colombian farmer's expenses have just skyrocketed by nearly 24%, the global "market price" for their product might stay flat—or even drop.

Why "Price per Pound" Tells the Wrong Story

At Origin Bridge, we operate on the ground. We see these rising costs firsthand. This is why buying coffee based solely on the C-market + a small differential is a broken model for specialty coffee.

To ensure that the farmers we work with can actually survive this wage hike, we must pay prices that are decoupled from the stock market and based on the real cost of production.

Sustainability Means Paying the Bill

As a roaster, when you buy specialty coffee, you aren't just buying flavor notes. You are buying the assurance that the farm can operate next year, too.

The wage hikes in Colombia are a challenge, but they are also a reality check. Quality coffee requires fair labor. And fair labor costs money. By acknowledging this gap between the C-market and reality, we can build a supply chain that actually supports the people behind the bean.