When local customs meet the market: an analysis of coffee value chain in Tebat Benawa customary community, Indonesia

Abstract

Using Tebat Benawa customary community in Indonesia as a case study, this paper aims to understand how non-specialty Robusta coffee value chain operates at the farmer-trader level and see if and how customary setting influences the relationships between actors. We employed a mixed-methods research design combining qualitative and quantitative analyses of primary and secondary data collected through group discussions, interviews, and participant observations. The social network analysis results showed that customary settings represented by clan-based familial relationships influenced farmer-trader relations, but it was not dominating. Coffee prices seem to be the major driver of the farmer-trader relations in Tebat Benawa. We argue that the relatively early stage of customary community consolidation indicates a weak social capital that makes economic rationale dominate farmers’ business decisions. This study contributes to the limited literature on the contemporary smallholder value chain of non-specialty Robusta coffee.