Revenue Sharing in Green Cluster Supply Chain of Highland Arabica Coffee

It was the advances in understanding the collaboration between the farmers and the other stakeholders in supply chain that resulted in the development of the concept of green cluster supply chain (GCSC), which is the program letting the farmers do environmental friendly activities, cooperate and share the information of their coffee products, and set the revenue sharing contracts between the farmer clusters, the assemblers, and the processor. This research aims to explore the optimum revenue sharing contracts prototype that leads to the rise of farmers’ income. The samples of 29 and 27 farmers in Pamiang and Pang Ma-O areas who are willing to participate in GCSC were selected by using the purposive sampling method, two assembler, and only one processor. The scenario and adjustment of the parameters techniques are used for determining the revenue sharing between non-GCSC and GCSC models and investigating the best results. The results show that the decision of contracts selection depends on the goal of supply chain agreements. If the goal is the profit maximization of the farmers, then the appropriate contracts of revenue sharing associates with the share of revenue are about 10% from the RPF to the assemblers and 10% from the assemblers to the farmer clusters. In another view, if the goal is the profit maximization of the supply chain, then the suitable form is only the share of revenue about 10% from the assemblers to the farmer clusters. The findings of this research bring about the optimum GCSC prototype in the selected highland areas leading to the rise of farmers’ income and well-being. Moreover, the relevant agencies can bring this prototype to impose the policy of highland development and expand to the other areas.