Building a Coffee Agribusiness Development Strategy in Rural Area: Focus Group Discussion Approach to the Coffee Farmers

Abstract

Agribusiness had a big role in development of agricultural economy transformation to create community prosperity. This research aimed to identify problem and organize coffee agribusiness strategy development in rural area. We study about this case in a rural area with a good potential in Sulawesi Island. We use deep focus discussion approach to the chosen farmers and then we accompanied and observed them for two years. We have finished the preliminary research to build information on village comparative advantage through village potential spatial base as one of approaches in strengthening agribusiness commodity development strategies. In this article, we concluded that agribusiness strategy development of coffee that started from institutional strengthening of coffee farmers, made the corporation base group would be the main buffering power of farmers to strengthen their position in the agribusiness system. By using corporation, the strengthening of farmers was conducted not only in production sector but also in business sector, how to build a strong business network. Strong corporate bargaining position in business chain would stimulate inclusive business. Good inclusive business for farmers when they created a good quality of coffee product therefore it could the stability of market price. The role of government through the regulation strengthening was needed to keep the stability of the inclusive agribusiness system.