Given a high unit price, substantial demand for specialty coffee and Indonesia's low international market share, there is scope for expansion of Indonesian Arabica coffee exports. This report summarises the key factors that impact on the competitiveness of the Arabica coffee industry in Indonesia and prioritises areas for intervention. Field visits and interviews with value chain participants informed the analysis. The report examines three scenarios for expanding production and farm income i) increasing on-farm production and yield rate, ii) increasing area of mature trees, iii) a combination of i) and ii). Three coffee farms from Northern Sumatra are profiled in an integrated value chain analysis covering farmers to exporters. On-farm production limitations are identified as well as market and value chain constraints. The author highlights the lack of extension services for on farm technical support and the need for an overarching industry organisation representing stakeholders along the farm to export supply chain to address policy and market based issues.
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Commodity:
Publication Date:
2007
Author:
Global Development Solutions
Publisher:
World Bank
Keywords: