Value Chain of Coffee Farming Business Development

Abstract

The problem faced by Indonesian countries in the export sector for agricultural commodities is the decline in the production of Arabica coffee and Robusta coffee. One of the problems with the decline in coffee production is the income of farmers and this is the cause and the processing of the coffee industry in the region does not contribute to improving the selling price of farmers' green coffee beans. Coffee producers in Indonesia (96.19%) have a farmer background. It is hoped that applying the analysis of the GVC (Global Value Chain) so that it can provide an overview of changes in the structure of the order starting from farmers to consumers. It is hoped that this paper will provide a solution on how to improve farmers' income and also improve the value chain of coffee farming. In improving the welfare of coffee farming in Indonesia, it is necessary to improve prices that can be determined by the government so that a win-win solution process In improving the welfare of coffee farming in Indonesia, it is necessary to improve prices. It can be determined by the government in order to have not only positive impact on farmer’s income, but also provide benefits for the company. Efficiency in the value chain has significant benefits on coffee production as well as quality, thereby benefiting state and local governments. With the welfare of the farming community, it can change the minds of the younger generation to become and farmers don't look down on them to reduce the bad impact of the farmer crisis which is very important today.