Dynamic of Arabica Coffee Marketing Organization in Ngada District:Progress Upon Implementing of Geographical Indication

Farmer organization has important role on coffee agribusiness development. Organization was positioned as a driving force on farmer economic activities, especially in strengthening partnership networks. Realizing the importance of organization, the aim of this research was to identify the coffee market structure in the scheme of Geographical Indication; to analyze the dynamic of coffee marketing organization at farmers level; and to analyze added value of wet parchment bean sales at the farmers organization. This research was conducted in Ngada District which includes Bajawa, Golewa and West Golewa Sub-district. Respondents in this study were 100 farmers which determined by using simple random samplingmethod. The primary data was based on questionnaire and secondary data was from journals, articles, and internal reports. Data were analyzed with descriptivequalitativeapproach and Hayami method. The results showed that coffee market structure in Ngada District lead to imperfect competition market (monopsonyoligopsony). The dynamic of farmers organization worked in progress which shown through ease access to market information and networking. Vertically organizational relationship between farmers and other market cooperatives has been established. Added value at UPHs/cooperative in the coffee supply chain was 15,35% of output valu

Factors Affecting Micro and Small-Scale Industries Income: a Case Study on Coffee Processing Industry

Development the competitive industries primarily small firms ought to be realized for improving economic growth of a community. Small industries have an important role especially on income equity improvement in rural areas. The objective of this study was to assess industry players motivation for developing their business in coffee processing and also to analyze factors which influence business income focused on micro and small-scale coffee industries in Bondowoso District. Survey method was used in this study for collecting primary and secondary data. A number of respondents were 25 coffee industry players who be determined by judgement sampling method. Data were analyzed by descriptive and statistic method. Multiple linear regression was used in the suspected factors that affect small industries income. The results indicated that the main motivation of industry players in initiating and developing coffee business was financial incentive. Consecutively, indicators that may explain industry player\u27s motivation were expectation, motive and incentive. Micro and small-scale industries income was affected by raw material, marketing reach, technology and business experience. Meanwhile, micro and small-scale industries income was not affected by labor cost and source of capital

Identification and Mapping of Readiness of Micro and Small Coffee Industry Cluster Development

Cluster development of micro and small-scaled coffee industry is an effortto improve the economy of community by utilizing local resources. This studywas aimed to identify phase of cluster growth through determinant factors ofindustrial cluster growth; to assess a linkage between economy players in theindustrial cluster; and to identify strength, weakness, opportunity, and threat incoffee industry development. This research was carried out in Sumberwringin,Bondowoso District, East Java. Survey method through direct observation andinterviews were conducted in this study. Data collected included primary andsecondary data. Number of respondents were 25 industry players selected byjudgement sampling method. The data were analyzed by exploratory descriptivewith content analysis method. This research concluded that industrial clusterstudied was still in phase of formation and initiative (embryo) and its growthpattern followed Pattern III. Interrelationship between core industries has notbeen established, while linkage between core industries and supporting industrieshad already well-established. Strength and opportunity in coffee industrydevelopment included raw materials availability, market segment growth. Smalland micro enterprises credit facility, supporting facility, and labor availability.Constraints and threat faced by coffee industry included limited market access,in adequate machineries, limited working capital, raw materials quality, inconsistentproduct quality, credit claim, and competitors

Estimating the Volatility of Cocoa Price Return with ARCH and GARCH Models

Dynamics of market changing as a result of market liberalization have an impact on agricultural commodities price fluctuation. High volatility on cocoa price movement reflect its price and market risk. Because of price and market uncertainty, the market players face some difficulties to make a decision in determining business development. This research was conducted to 1) understand the characteristics of cocoa price movement in cocoa futures trading, and 2)analyze cocoa price volatility using ARCH and GARCH type model. Research was carried out by direct observation on the pattern of cocoa price movement in the futures trading and volatility analysis based on secondary data. The data was derived from Intercontinental Exchange ( ICE) Futures U.S. Reports. The analysis result showed that GARCH is the best model to predict the value of average cocoa price return volatility, because it meets criteria of three diagnostic checking, which are ARCH-LM test, residual autocorrelation test and residual normality test. Based on the ARCH-LM test, GARCH (1,1)did not have heteroscedasticity, because p-value 2 (0.640139)and F-statistic (0.640449) were greater than 0.05. Results of residual autocorrelation test indicated that residual value of GARCH (1,1) was random, because the statistic value of Ljung-Box (LB)on the 36 th lag is smaller than the statistic value of 2. Whereas, residual normality test concluded the residual of GARCH (1,1) were normally distributed, because AR (29), MA (29), RESID (-1)^2, and GARCH (-1) were significant at 5% significance level. Increasing volatility value indicate high potential risk. Price risk can be reduced by managing financial instrument in futures trading such as forward and futures contract, and hedging. The research result also give an insight to the market player for decision making and determining time of hedging

Effect of Price Determinants on World Cocoa Prices for Over the Last Three Decades: Error Correction Model (ECM) Approach

High volatility cocoa price movement is consequenced by imbalancing between power demand and power supply in commodity market. World economy expectation and market liberalization would lead to instability on cocoa prices in the International commerce. Dynamic prices moving erratically influence the benefit of market players, particularly producers. The aim of this research is (1) to estimate the empirical cocoa prices model for responding market dynamics and (2) analyze short-term and long-term effect of price determinants variables on cocoa prices. This research was carried out by analyzing annualdata from 1980 to 2011, based on secondary data. Error correction mechanism (ECM) approach was used to estimate the econometric model of cocoa price.The estimation results indicated that cocoa price was significantly affected by exchange rate IDR-USD, world gross domestic product, world inflation, worldcocoa production, world cocoa consumption, world cocoa stock and Robusta prices at varied significance level from 1 - 10%. All of these variables have a long run equilibrium relationship. In long run effect, world gross domestic product, world cocoa consumption and world cocoa stock were elastic (E >1), while other variables were inelastic (E <1). Variables that affecting cocoa pricesin short run equilibrium were exchange rate IDR-USD, world gross domestic product, world inflation, world cocoa consumption and world cocoa stock. The analysis results showed that world gross domestic product, world cocoa consumption and world cocoa stock were elastic (E >1) to cocoa prices in short-term. Whereas, the response of cocoa prices was inelastic to change of exchange rate IDR-USD and world inflation

Performance of Roasted Cocoa Bean Winnower for Small Holder Chocolate Producers

Cocoa bean winnowing has a function to separate cocoa nibs from shell after roasting process of dry bean. Nibs are further processed into fine cocoa liquor by refining process. The aim of this experiment was to evaluate working performance of a home-scale winnower to separate shell from nibs with minimum shell parchment content in cocoa nibs. This experiment was conducted in Postharvest Laboratory at the Indonesian Coffee and Cocoa Research Institute using roasted cocoa bean grade A according to standard of SNI 2323:2008/ Amd1:2010 with shell content of 15% originated from Forastero cocoa. Working performance of the home-scale winnower was evaluated based on shell parchment content in the output, its capacity, energy consumption and power transfer efficiency value by several air suction rates as variable. Data were analyzed using regression and variance analysis to evaluate the influence of the rate and to determine the optimum machine operation. Results of regression and variance analysis from winnowing experiment with air suction rate of 0.54 m/s; 0.63 m/s; 0.72 m/s and 0.90 m/s indicated that shell parchment content in cocoa nibs and power transfer efficiency value were affected by the rate. The optimum machine performance was obtained on 0.72 m/s of air suction rate with total winnowing capacity was 2.615 kg/hour, energy consumption of 132 Watt, power transfer efficiency value of 61.01% and shell parchment content was 1.06%. Shell parchment content in cocoa nibs was appropriate regarding to the SNI standard with maximum content of 1.75%

Characteristics of Quality Profile and Agribusiness of Robusta Coffee in Tambora Mountainside, Sumbawa

Coffee development in Indomesia by means of optimalizing local resources needs to be done for increasing national coffee production as well as for expanding domestic and International markets. These opportunities must be used to gain benefit as a strategic action for raising farmer\u27s prosperity. This study was aimed to observe physical quality and flavor profile of Robusta coffee from Tambora mountainside, and to identify agribusiness coffee system applied by the farmers, including problem identification at farmer\u27s level. This research was carried out at Pekat Subdistrict (Dompu District) and Tambora Subdistrict (Bima District), West Nusa Tenggara Province. Direct observation and in-depth interviews were conducted in this study. Data collected consisted of primary and secondary data, as well as 11 green coffee samples from farmers to be analysed its physical quality and flavor profile. The number of respondents were nine stakeholders consisted of three farmers, two farmer group leaders, one field officer, one duty officer, one trader, and one large planter official. Respondents selection were based on convenience sampling method. The results showed that physical quality of coffee bean was belonged to Grade 4—6 (fair to poor quality), while broken beans shared the highest number of physical defects. Robusta coffee from Tambora mountainside performed good taste profile, that the coffee can be promoted to be fine Robusta by improving post harvest handling. Robusta coffee farming at Tambora mountainside was characterized by monoculture cropping system, average of land ownerships about 1 ha/household, and average productivity about 900—1,000 kg green coffee/ha/year. Major problems on Robusta coffee farming at Tambora mountainside consisted of lack of coffee plant maintenance as well as limited accessibility to financing and technology