IDEAS home Printed from https://ideas.repec.org/a/ags/ajosrd/342310.html
   My bibliography  Save this article

Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia

Author

Listed:
  • Kaidoa, Boris
  • Takashino, Nina
  • Fuyuki, Katsuhito

Abstract

Indonesia has several Arabica coffee varieties that are well known in the domestic and world markets. However, marketing challenges exist for the domestic market and few cooperatives are able to export. Arabica Coffee Kerinci, a cooperative that exports, is an exception; nevertheless, marketing challenges persist for this cooperative too. Our objectives are to examine a case study of a successful cooperative that focuses on the export market and to clarify the challenges remaining for Arabica coffee marketing. Descriptive statistics were employed to capture the complexities of these marketing challenges. Semi-structured interviews using simple random sampling were conducted with the cooperative’s leader and with 51 farmers. We find that the fundamental challenges are quality inconsistency, price fluctuations, lengthy and bureaucratic export administration, absence of bank loans, and lack of government support. We recommend the following key steps: (1) focusing on improvements in producing and maintaining superior quality that meets export standards and provides capital stimulus; and (2) through greater government and industry synergy, encouraging governments to provide support to farmers and cooperatives alike. Further, other Indonesian regions could adopt Arabica coffee for rural development. This study contributes by formulating a better understanding of the major challenges facing producers of agricultural commodities.

Suggested Citation

  • Kaidoa, Boris & Takashino, Nina & Fuyuki, Katsuhito, 2021. "Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 11(01), January.
    • Handle: RePEc:ags:ajosrd:342310
    DOI: 10.22004/ag.econ.342310
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/342310/files/Challenges%20of%20Arabica%20Coffee%20Marketing%20A%20Case%20Study%20in%20Kerinci%20Regency%2C%20Indonesia.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.342310?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    2. Gede Sedana & Nengah Dasi Astawa, 2019. "Establishment of inclusive business on coffee production in Bali province: lesson from the coffee development project in Nusa Tenggara Timur province, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(1), pages 111-122, June.
    3. Palmiro Poltronieri & Franca Rossi, 2016. "Challenges in Specialty Coffee Processing and Quality Assurance," Challenges, MDPI, vol. 7(2), pages 1-22, October.
    4. Sokchea, An & Culas, Richard J., 2015. "Impact of Contract Farming with Farmer Organizations on Farmers’ Income: A Case Study of Reasmey Stung Sen Agricultural Development Cooperative in Cambodia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 23, March.
    5. Jef Rudiantho Saragih, 2013. "Socioeconomic and Ecological Dimension of Certified and Conventional Arabica Coffee Production in North Sumatra, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 3(3), pages 93-107, March.
    6. Valkila, Joni, 2009. "Fair Trade organic coffee production in Nicaragua -- Sustainable development or a poverty trap?," Ecological Economics, Elsevier, vol. 68(12), pages 3018-3025, October.
    7. Jef Rudiantho Saragih, 2013. "Socioeconomic and Ecological Dimension of Certified and Conventional Arabica Coffee Production in North Sumatra, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 3(3), pages 93-107.
    8. Saragih, Jef Rudiantho, 2013. "Socioeconomic and Ecological Dimension of Certified and Conventional Arabica Coffee Production in North Sumatra, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 3(03), pages 1-15, March.
    9. Gede Sedana & Nengah Dasi Astawa, 2019. "Establishment of Inclusive Business on Coffee Production in Bali Province: Lesson from the Coffee Development Project in Nusa Tenggara Timur Province, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 9(1), pages 111-122.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boris Kaido & Nina Takashino & Katsuhito Fuyuki, 2021. "Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 11(1), pages 53-62, March.
    2. Chiputwa, Brian & Spielman, David J. & Qaim, Matin, 2015. "Food Standards, Certification, and Poverty among Coffee Farmers in Uganda," World Development, Elsevier, vol. 66(C), pages 400-412.
    3. Minten, Bart & Reardon, Thomas & Singh, K.M. & Sutradhar, Rajib, 2010. "The benefit of cold storages: Evidence from Bihar," MPRA Paper 54345, University Library of Munich, Germany, revised 14 Dec 2010.
    4. Hernandez-Aguilera, Juan N. & Gómez, Miguel I. & Rodewald, Amanda D. & Rueda, Ximena & Anunu, Colleen & Bennett, Ruth & Schindelbeck, Robert R. & van Es, Harold M., 2015. "Impacts of smallholder participation in high-quality coffee markets: The Relationship Coffee Model," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205650, Agricultural and Applied Economics Association.
    5. Emily Ouma & John Jagwe & Gideon Aiko Obare & Steffen Abele, 2010. "Determinants of smallholder farmers' participation in banana markets in Central Africa: the role of transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 111-122, March.
    6. Pietrelli, Rebecca & Salvatici, Luca & Montalbano, Pierluigi, 2015. "Food security and farmers' participation to value supply chain: the case of Ugandan maize," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207354, Italian Association of Agricultural and Applied Economics (AIEAA).
    7. Vargas Hill, Ruth & Maruyama, Eduardo & Olapade, Markus & Frölich, Markus, 2020. "Strengthening Producer Organizations to Increase Market Access of Smallholder Farmers in Uganda," IZA Discussion Papers 13703, Institute of Labor Economics (IZA).
    8. Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank.
    9. Cazzuffi, Chiara & McKay, Andrew, 2012. "Rice market participation and channels of sale in rural Vietnam," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126566, International Association of Agricultural Economists.
    10. Ogutu, Sylvester Ochieng & Okello, Julius Juma & Otieno, David Jakinda, 2014. "Impact of Information and Communication Technology-Based Market Information Services on Smallholder Farm Input Use and Productivity: The Case of Kenya," World Development, Elsevier, vol. 64(C), pages 311-321.
    11. Bussolo, Maurizio & Godart, Olivier & Lay, Jann & Thiele, Rainer, 2006. "The impact of commodity price changes on rural households : the case of coffee in Uganda," Policy Research Working Paper Series 4088, The World Bank.
    12. Muto, Megumi, 2009. "The impacts of mobile phone coverage expansion and personal networks on migration: evidence from Uganda," 2009 Conference, August 16-22, 2009, Beijing, China 51898, International Association of Agricultural Economists.
    13. Negi, Digvijay S. & Birthal, Pratap S. & Roy, Devesh & Khan, Md. Tajuddin, 2018. "Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks," Food Policy, Elsevier, vol. 81(C), pages 106-121.
    14. Oswaldo Viteri Salazar & Jesus Ramos-Martin & Pedro L. Lomas, 2016. "Using household types for improving livelihood strategies of smallholders: coffee and cocoa producers in the Northern Amazon of Ecuador," Documentos de Trabajo FLACSO Ecuador 2016_02, Facultad Latinoamericana de Ciencias Sociales (FLACSO).
    15. Pierre Courtois & Julie Subervie, 2015. "Farmer Bargaining Power and Market Information Services," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(3), pages 953-977.
    16. Chandra Sekhara Rao Nuthalapati & Yogesh Bhatt & Susanto K Beero, 2020. "Is the Electronic Market the Way Forward to Overcome Market Failures?," IEG Working Papers 387, Institute of Economic Growth.
    17. Varun Kumar Das & A. Ganesh-Kumar, 2019. "Commercialization, diversification and structural determinants of farmers' income in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-042, Indira Gandhi Institute of Development Research, Mumbai, India.
    18. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    19. Prabal Barua & Syed Hafizur Rahman, 2020. "Livelihood Security Determinants Of The Organic Farm Household In South-Eastern Coast Of Bangladesh," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 2(1), pages 1-5, November.
    20. Subir Bairagi & Ashok K. Mishra & Anil Giri, 2019. "Good agricultural practices, farm performance, and input usage by smallholders: Empirical evidence from Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 471-491, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajosrd:342310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aesstea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.