This report presents a sector profile and value chain analysis of the coffee industry in East Nusa Tenggara, identifying the potential for improved smallholder coffee returns. The research shows that coffee in this region has considerable potential, not least because of its natural low acidity and high body flavour derived from its soil and climate. Other factors contributing to its potential include low inputs in current production practices, reduced pests and diseases in mountain climates in some areas, large areas of undeveloped land that could be used for coffee production, and a favourable short to medium term price outlook for mild flavoured coffee styles. The analysis also shows potential for lifting smallholder returns by improving post-harvest fermentation practices and working with existing buying groups. The report provides a number of recommendations aimed at improving smallholder returns through long-term technical assistance.

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