Farmer sales decisions and the sustainability of the coffee supply chain in Indonesia

Abstract

The aims of this study: 1) analyze of Indonesian coffee farmers in determining the purpose of selling coffee; 2) analyze the factors that influence the decisions of Indonesian coffee farmers in determining coffee sales for improving the sustainability of the Indonesian coffee supply chain. This study uses data from the Indonesian Plantation Business Household Survey and multinomial logistic analysis methods. The number of respondents analyzed was 21 361 coffee farmers scattered throughout Indonesia. Coffee farmers in Indonesia sell to collectors, markets, village unit cooperatives, and plantation companies. The percentage of farmers coffee sales is through collectors due to distance, cost, ease of cash, and ease of transaction. In contrast, farmers who deal with the company will tend to sell coffee to the company because of the partnership. improvement of quality consistency and production continuity is carried out such as with Geographical Indications (GI) of production center areas. This can be done by various supply chain actors such as the Community Concerned for Geographical Indications (MPIG) in conducting counseling and mentoring for farmers. This can trigger the coffee supply chain in Indonesia.

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“…Apart from that, according to farmers, selling coffee to village intermediaries can reduce unwanted risks such as counterfeit money and road hazards. It is in line with research by Rosiana and Feryanto (2022), where collecting traders come to the farmer's place so that the farmer does not bear the cost of the vehicle. b) Marketing Channels II Marketing channel II involves farmers, city intermediaries, and exporters.…”