Analysis of the coffee market and supply chain in Indonesia

November 14, 2017 1:45 pm

Serikat Paguyuban Petani Qaryah Thayyibah (SPPQT) is an Indonesian cooperative established in 1999 with the aim to improve the situation of the farmers in Central Java. SSPQT currently represents approximately 18,000 members.

Coffee production is an important source of income for many farmers in this region. Over 8,000 farmers from 13 districts in Central Java supply approximately 4 tons of coffee annually. However, the coffee producers sell their coffee to middlemen who define the (relatively low) coffee price. Farmers are not capacitated to access the market directly and perceive a power misbalance. In addition, they do not add value to their coffee. No sorting or grading is done and knowledge of the market and consumer demands is lacking.

SPPQT does currently not play an active role in supporting its coffee farmer members and in collective marketing. It lacks up to date knowledge on the coffee value chain its members are part of. They would like to explore the possibilities for a viable business plan for collective marketing, meeting the demand of the consumers and for improving the livelihoods of the farmers by providing them with more expertise, skills and, therefore,power. To provide SPPQT and its members with a clear understanding of the coffee value chain a profound value chain analysis is done, incorporating the current position of the farmers, the consumer demands and the potential role of SPPQT in supporting its members and in defining a strategy to improve the livelihoods of the coffee producers in the region.

The research started mid 2017 and is expected to be finalised mid 2018.