Indonesia Robusta Coffee Value Chain: Mapping and Upgrading Opportunities

Abstract

Coffee, one of the agricultural commodities, aligns with specific relevant SDGs in addressing its sustainability challenges. This study aims to map and analyze the value chain to identify areas where upgrading interventions could be implemented to enhance the chain's sustainability. This research was conducted in Bogor Regency, West Java, and Pagar Alam City, South Sumatra, in 2022. 112 farmers and 23 downstream actors participated in this study as respondents. The research utilized the qualitative descriptive method, incorporating the M4P (Making Markets Work for the Poor) approach, Ishikawa analysis, and Gereffi concept. The research discovered that a wide range of actors is involved in the chain, including small farmers, intermediaries traders, cooperative, processing industries, roasteries, retail, and coffee shops. The finding reveals robusta value chain includes several stages of transformation: input, production, processing, trading, roasting, and marketing. Four types of upgrading can be carried out. First, process upgrading by increasing productivity through implementing Good Agricultural Practices and improving post-harvest handling and processing that optimizes water usage and minimizes waste. Second, product upgrading involves product differentiation by producing red-picked green beans. Third, functional upgrading through coffee industrialization by enhancing partnerships in the production network. Fourth, inter-sectoral upgrading by finding new coffee markets. Implementing these interventions is expected to improve the sustainability of Indonesia robusta coffee value chain.