The price formation process begins on the farm.
This is where the origin of every product is created—through continuous care, seasonal work, and responsibility for soil, plants, animals, and the landscape.
This page illustrates how this contribution is composed and why it cannot be understood as a single number.
The contribution to production and cultivation forms the foundation of the entire price architecture.
It arises from two distinct levels that must be consciously separated:
Only the interplay of these two levels results in a sustainable foundation.
Basic costs arise regardless of whether a year yields a large harvest, a small one, or none at all.
They secure the farm’s existence and continuity.
In the conventional market, these costs are often rendered invisible or indirectly absorbed.
In the TEIKEI context, they are deliberately made visible.
Because:
A farm can only exist long-term if its basic costs are covered—regardless of harvest fluctuations.
These costs only arise when production and harvesting actually take place.
They are variable and heavily dependent on the season, weather, and harvest volume.
These costs rise or fall with:
A sustainable contribution to production and cultivation only emerges when both levels are considered together.
If only one of the two levels is considered, a distorted picture emerges.
This distinction is central to the TEIKEI logic.
It makes visible:
In the TEIKEI context, this leads to an important development:
Not only products are financed, but also the foundation of their creation.
This means:
This way, the farm is not just a supplier but part of a supported structure.
This first level of price formation shows:
Once the foundation is laid on the farm, the next level follows:
Processing.
Here, the product is inspected, sorted, processed, and prepared in a form that can be transported and distributed.
One level up: Price Components
Author: Felix Schröder, with assistance from AI (ChatGPT)
Creation: written by Felix Schröder › formatted in Markdown by ChatGPT › published by Felix Schröder › layout adjusted by Claude
Created: 2026-03-30 · Last updated: 2026-10-11 · Questions or feedback? support@teikei.us