Implication of climate change on coffee farmers' welfare in Indonesia

Abstract

Coffee has become a leading commodity of several countries including Indonesia. Indonesia is the fourth largest coffee producing country in the world after Colombia, Brazil and Vietnam, in which 96% of coffee plantations in Indonesia are smallholdings, with an average land ownership of 0.6 hectares per farmer. However, in recent years the volume of coffee production has decreased due to climate change. Climate change in Indonesia raises the phenomenon of El Nino and La Nina that causing erratic rainfall. Further, it has an impact on coffee production and the farmers' welfare. The purpose of this paper is to describe the effect of climate change on the welfare of coffee farmers in Indonesia. This paper is a compilation of several articles, journals, and books written by experts on coffee, climate change, and the welfare of coffee farmers. The results indicate that climate change is very influential on coffee production volume and quality of post-harvest. Production and post-harvest problems caused by climate change have an impact on coffee quality to decrease, which further affects the income and prosperity of coffee farmers in Indonesia.