Analysis of income and value addition from coffee beans to coffee powder in Lintong Nihuta sub-district, Humbang Hasundutan regency

Abstract

This study aims to analyze the extent of value addition and income within the Arabica coffee powder processing enterprise. The selection of the research area was purposive, guided by the fact that the Lintong Nihuta Sub-district serves as a prominent hub for Arabica coffee production. The sample for this research consisted of the Arabica coffee powder processing business BR JR Coffee, selected through the Purposive Sampling technique. The employed data analysis methods encompass the Hayami value-added calculation approach and descriptive analysis. The Hayami value-added calculation technique is employed to determine the value addition stemming from the conversion of coffee beans into Arabica coffee powder. Meanwhile, the descriptive analysis method is utilized to compute the revenue generated by the coffee powder processing endeavor. The research findings divulge that the value addition resulting from the conversion of coffee beans into Arabica coffee powder at BR Jr Coffee totals Rp52,649.087 per kilogram, with a value-added ratio of 50.57%. Additionally, the accrued income stands at Rp1,199,473 per production cycle.