Development model on upstream-downstream integration of coffee agroindustry using dynamics modelling approach

Abstract

Increasing the competitiveness of the coffee agro-industry requires integration from upstream to downstream. The problems faced by Lumajang coffee farmers are in increasing production; the limited coffee supply is not proportional to the high demand. Besides, the quality of the coffee produced is good but has not been processed properly. This research is expected to improve the performance of the coffee agroindustry in the Lumajang Regency and strengthen the institutional integration of the upstream-downstream coffee agroindustry in Lumajang. The dynamic system methodology is considered to be able to solve existing problems; the ability of dynamic systems to recognize variables and to show the influence of the relationship between the overall system behaviour in a model. The results obtained are conceptual models Causal Loop Diagram (CLD) as an effort to solve problems. It is made based on key variables to build the right dynamic system. The CLD model of upstream and downstream coffee agroindustry integration in the Lumajang Regency consists of 3 sub-models, namely the sub-model of production, quality, and agroindustry institutions.