The value chain of Timor-origin Arabica coffee in South Central Timor district

Abstract

In order to support efforts to increase the selling value and added value of the economy in each coffee commodity value chain, it is necessary to analyze the opportunities for added value in each Timorese coffee commodity value chain accompanied by a coffee commodity value chain development strategy so as to obtain optimal coffee commodity value addition for each business actor. This study aimed to map the value chain of coffee products from Timor origin, identify the relationship between the value chain and the roles of each actor involved in the Timor origin coffee supply chain; establish strategies and policies to increase economic growth in each product value chain by calculating the added value of Timor-origin coffee products. The sampling method for coffee farmers and business actors was determined by purposive sampling. Primary and secondary data were obtained from focus group discussions with respondents as well as literature from agencies/institutions in the South Central Timor District and Kupang City that were relevant in conducting the research. The value chain analysis method was used in this study to calculate the value added in each value chain formed. There were 3 flow patterns of Arabica coffee value chains from Timor where the largest added value in value chain 1 was obtained from coffee processors by 64.44%, and value chain 2 was obtained from farmers by 78.95% while in value chain 3, largest added value was obtained from ready-to-drink coffee actors by 81.38%. Increasing the added value of Arabica coffee of Timor origin in each value chain form could be optimized if the coffee products are marketed by business actors in the form of ground coffee and brewed coffee served in the form of drinks in coffee shops. Collaborative and cooperative strategies of farmers and business actors, as well as capacity building of farmers in post-harvest coffee, are alternatives to improve the quality and price of Arabica coffee from Timor origin.