Analysis of Specialty Coffee Business Performances: Focus on Management of Farmer Organizations in Indonesia

Indonesian specialty coffee farmer organization is established by Government of Indonesia (GoI) for managing coffee production, processing, and marketing in farmer group level. Through farm-level industrialization program, the GoI supported coffee farmer organizations in several specialty coffee producing regions for increasing farmers’ livelihoods. These farmer organizations are encouraged to produce higher quality of coffee in term of specialty coffee and link directly with buyers. Therefore, the farmer groups would obtain the profits that can be shared to the members of farmer organizations. This research aims firstly to understand the performances, challenges and risk management of specialty coffee business on farmer organizations level across Indonesia, and secoundly to understand the profits gained by specialty coffee farmer organizations. The research has been conducted in several specialty coffee producing regions, including Bali, East Java, Flores and South Sulawesi. The case study and ethnography were carried out by collecting data through direct observation and in depth interviews. Number of respondents were 27 producer organizations which were selected by judgement sampling method. The data were analyzed by using descriptive method and profit analysis. The research results show that alternative model of value chain interventions (VCIs) is required for improving the profits of specialty coffee business on farmer organizations level and farmers’ livelihoods. Maximization the VCIs to increase the benefits for farmers, the VCIs should be conducted by incorporating both off-farm and on-farm aspects

Study on Incentive Price of Fermented Cocoa to Overcome Reluctance of Farmer to Apply Fermentation : Case Study in Jembrana Regency

Improving cocoa quality through encouraging farmers to do fermentation is one of the ways to increase the added value of cocoa. However, majority ofIndonesian farmers are reluctance to do fermentation. This research aimed to study factors causing farmers reluctant to do fermentation, weight differencebetween fermented and unfermented cocoa, cocoa processing time difference between fermented and unfermented cocoa, quality difference between fermentedand unfermented coco refers to cocoa bean standard (SNI): 01-2323-2008/Amd-2010, and feasible added value incentive of fermented cocoa beans. The data collectionwere conducted through household farmers\u27 survey, focus group discussion and experimental research. The experimental research was conducted to understandthe weight and processing time differences; and to asess the quality, including moisture content, bean count, pH and fermentation index. Analysis of the datawere conducted by methods of Fishbone Ishikawa and logit multiplier linear analysis. The research results showed that the main factors causing farmers reluctant todo fermentation were insuitable of selling price of fermented cocoa, the existence of village collectors in buying unfermented cocoa, the lack of cooperation amongfarmers in farmer group (Subak Abian) and the lack of farmers\u27 skills on cocoa bean fermentation. This study also found that the weight depreciation differencebetween fermented and unfermented cocoa was 0.5-3.75%, and the processing time difference between fermented and unfermented cocoa was 12-24 hours. Qualityof fermented cocoa beans was higher than that of unfermented cocoa beans and it can fulfill the standard of SNI: 01-2323-2008/Amd-2010. It was found that thefeasible added value incentive of fermented cocoa benas was 2,126-3,426 IDR/kg

Influence of Quality Improvement Activities and Direct Selling Through Mediated Partnership Model on Supply Chain, Farm-Gate Price and Indonesian Households Specialty Coffee Farmers’ Income

The low farm-gate price of agricultural commodities is commonly caused by low quality and complicated value chain. Quality improvement and direct selling through Mediated Partnership Model (Motramed) are conducted to increase farm-gate price and bargaining power of smallholder farmers. In Indonesia, Motramed has been applied in several coffee producing regions, such as Flores, Kintamani and East Java. This research aimed to understand the influence of quality improvement and direct selling activities through Motramed on market chain, farm-gate price and household coffee farmers’ income in Indonesia. This research was conducted in Kintamani in 2013. This research also used farm-gate data in several specialty coffee producing regions, including Flores (Bajawa and Ruteng), Kintamani and East Java that collected during 2010 and 2011. I incorporated both quantitative and qualitative research methods to explore and analyse the data. Household farmer survey, semi-structured interview with coffee stakeholders including farmers, collectors, exporters, government officials and NGOs; and field observation were used for collecting the data. The research shows that quality improvement activity in the farm level and direct selling through Motramed ha

Livelihood strategies of smallholder coffee farmers: case study in Simalungun, North Sumatera

The majority of coffee in Simalungun is produced by smallholder coffee farmers who have several issues, including limited working capital, access to knowledge, technology and market information. These issues have impacted on low productivity that further has caused the low income obtained from coffee farm. The aim of this research is to understand the livelihood strategies applied by smallholder coffee farmers and to analyze the contribution of coffee to the household farmers’ income. A household survey has been carried out in 2018. The survey was conducted in Silimakuta, Dolok Silau, Purba, Pematang Silimakuta, Dolok Silau, and Pematang Purba sub districts. There were 200 smallholder coffee farmers interviewed in this research. The research showed that the majority of coffee farmers applied diversification livelihood strategies. The smallholder coffee farmers are also maintaining diverse and highly intensive horticulture production, such as citrus, potatoes, tomatoes, cabbage and chili. The research results indicate that coffee consist only part of the smallholder coffee farmers livelihood. However, coffee plays important contribution as source of smallholder coffee farmers’ income, with average coffee contribution to smallholder household farmers accounted for 42.30% to household farmers’ income. The income gained from coffee is generally spent to meet staple food needs, particularly to buy rice

Consumer Satisfaction of Chocolate Product and Its Marketing Facilities: Case Study of a MSME Chocolate Factory in Jember

The role of micro, small and medium enterprises (MSME)-scale of cocoa agro-industry sector in Indonesia has increased along with the increasing number of MSMEs engaged in secondary cocoa processing sector. One of the factors that influence the sustainability of cocoa agroindustry business is customer satisfaction index (CSI). Therefore, this study aims to analyze consumer satisfaction index of chocolate product and its marketing facilities offered by producer which can then be used as input for the development of chocolate business. This research was conducted at MSME chocolate factory located in Jember, Indonesia. The selection of this location was done purposively with the consideration that the MSME chocolate factory produces couverture chocolate products. The research method chosen is descriptive using the analysis method of customer satisfaction index (CSI) and importance performance analysis (IPA). There were 96 respondents involved in this research. Determination of sample size was calculated by using the Slovin formula. The results showed that the majority of the chocolate consumers are, young generation female who have well literacy of digital experiences. Furthermore, CSI of chocolate products and its marketing facilities was 77.86%, which indicates that overall consumers were satisfied. Several attributes that has satisfied the consumers are chocolate taste, packaging, chocolate shape, food safety guarantees labeled at the chocolate products, outlet cleanliness, outlet convenience, the atmosphere offered by the outlet, friendliness of the salesperson to the customer, salesperson’s knowledge of the menu, responsiveness of salespeople in fulfilling orders, attractive outlet interior design, cleanliness and availability of toilets, prayer rooms and supporting facilities for consumer comfort has also satisfied the consumers. Priority improvement strategies that require to be conducted to increase consumer satisfaction include adjusting the price of chocolate products, increasing promotions through social media and providing entertainment facilities, such as music, wi-fi, and TV at chocolate marketing facilities

Coffee and cocoa dissemination through information and communication technology (ICT) during the Covid-19 pandemic

Digital transformation and COVID-19 pandemics have changed human behaviour in their interactions. Virtual communication has become a new behaviour in this era. Indonesia Coffee and Cocoa Research Institute (ICCRI) held Puslitkoka Webinar Series as part of digital transformation in the dissemination. This research discusses the effectiveness of virtual learning through webinars for disseminating coffee and cocoa innovation and technologies. This research applied a purposive method to the participants of the Puslitkoka Webinar Series. Data collection was conducted from February until May 2021 by a survey with 241 respondents. The research result showed that: 1) expectation attribute was 87.82%, meaning met their expectation, 2) the satisfaction attribute was very good (90.79%), 3) the attributes of the participants' desire to take part in the next webinar is great desire (93.03%), 4) participants were very eagerly (87.88%) to share webinar to their colleagues, 5) participants were very eagerly (91.12%) to recommend the webinar to their colleagues, 6) participants were very interested (90.46%) in participating in technology dissemination activities through webinars, and 7) participants' interest in technology dissemination directly (face-to-face) was lower than interest in webinars, but was still very interested (83.65%). Puslitkoka Webinar Series as a hub of coffee and cocoa dissemination

Added Value Analysis of Intermediate and Final Cocoa Products: Case Study in a Cocoa Producing Unit in Jember, East Java

Cocoa is one of the important commodities that significantly contribute to Indonesian economy. Moreover, millions farmers depend on this commodityas their main source of income. However, the low quality of dried cocoa beans produced by Indonesian smallholder cocoa farmers has led the low farm-gateprice. Therefore, efforts for increasing the cocoa income are required. Hilirisasi (down streeming) program has been implemented by the Government of Indonesia (GoI), including in cocoa commodity in order to increase the added value ofcocoa. There are various downstream products, including intermediate and final products that can be produced. The intermediate products include paste/liquor,cocoa butter, and cocoa powder, meanwhile the final products, such as 3 in 1 cocoa powder, milk chocolate bars and dark chocolate bars. Research on addedvalue of intermediate and final cocoa products specially in small size producing units is still limited, whereas this research is required to support the nationaleconomy and smallholder cocoa farmers. Therefore, this research aims to understand the added value of producing intermediate and final cocoa products at asmall sized enterprises of cocoa processing unit based in Jember, East Java. This research was conducted in March to June 2020 by conducting observation, documentation and interview for understanding the production activities of intermediateproducts (cocoa paste/liquor, cocoa butter and cocoa powder) and final products (3 in 1 milk powder, milk chocolate bar and dark chocolate bar). The researchresults show that producing intermediate and final products resulted in medium to high added value and profitable for the producing unit. Producing cocoa paste/liquor generated the highest profit among the intermediate cocoa products, meanwhile on final cocoa products, processing 3 in 1 cocoa powder provided thehighest profit. In order to increase the national and community economy, the support of GoI to small and medium enterprise (SMEs) or farmer groups for processing the downstream cocoa products is required. Cocoa is one of the important commodities that significantly contributeto Indonesian economy. Moreover, millions farmers depend on this commodity as their main source of income. However, the low quality of dried cocoa beansproduced by Indonesian smallholder cocoa farmers has led the low farm-gate price. Therefore, efforts for increasing the cocoa income are required. Hilirisasi(down streeming) program has been implemented by the Government of Indonesia (GoI), including in cocoa commodity in order to increase the added value ofcocoa. There are various downstream products, including intermediate and final products that can be produced. The intermediate products include paste/liquor,cocoa butter, and cocoa powder, meanwhile the final products, such as 3 in 1 cocoa powder, milk chocolate bars and dark chocolate bars. Research on addedvalue of intermediate and final cocoa products specially in small size producing units is still limited, whereas this research is required to support the nationaleconomy and smallholder cocoa farmers. Therefore, this research aims to understand the added value of producing intermediate and final cocoa products at asmall sized enterprises of cocoa processing unit based in Jember, East Java. This research was conducted in March to June 2020 by conducting observation, documentation and interview for understanding the production activities of intermediateproducts (cocoa paste/liquor, cocoa butter and cocoa powder) and final products (3 in 1 milk powder, milk chocolate bar and dark chocolate bar). The researchresults show that producing intermediate and final products resulted in medium to high added value and profitable for the producing unit. Producing cocoa paste/liquor generated the highest profit among the intermediate cocoa products, meanwhile on final cocoa products, processing 3 in 1 cocoa powder provided thehighest profit. In order to increase the national and community economy, the support of GoI to small and medium enterprise (SMEs) or farmer groups for processing the downstream cocoa products is required