Eastern Indonesia
Agribusiness Development
Opportunities (EI-ADO) - Coffee

Establishment of geographical indication protection system in Indonesia: case in coffee.

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Mawardi(2009)EstablishmentGeographicalIndicationProtectionSystemIndCaseCoffee_ICCRI.pdf

Coffee is one of the most important agricultural commodities for Indonesia either as an income source for millions of farming households or for foreign exchange earnings. The country produces a number of specialty coffees from different geographical origins having a distinctive cup taste profile. This paper provides an overview of the experience of Indonesia in establishing a geographical indication (GI) protection system from the starting point to the present progress. It draws on a pilot project that successfully implemented the GI protection system for Arabica coffee in the Kintamani highlands of Bali, which led to the first GI protection certificate for Kintamani Bali Arabica coffee being issued by the Directorate General for Intellectual Property Rights. One of the benefits of GI certification that the author notes in his overview is the increased price of Arabica coffee produced by farmers, which rose from around US$0.70 per kg to around US$3.10 per kg, resulting in an increase in farmer's income. According to the author, implementation of GI protection in Indonesia is moving forward gradually, with new applications from several origin products.

Publication Date:

2009

Author:

Mawardi S.

Publisher:

Worldwide Symposium on Geographical Indications, Sofia, 10-12 June, 2009

Keywords:

Commodity:

Global sustainability regulation and coffee supply chains in Lampung province, Indonesia.

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Arifin(2010)GlobalSustainabilityRegulationCoffeeSupplyChainsLampungIndo_UniLampung.pdf

Sustainability perspectives and long-term consequences of coffee practices on natural ecosystems and social-economic dimensions of the livelihood sector have been widely discussed in the literature. This paper contributes to this literature by examining the links between global sustainability regulation in agricultural trade and coffee supply chains by reviewing the economics of coffee-producing regions in Lampung Province, Indonesia. The case study demonstrates that sustainability regulation of global environmental practices in the coffee industry, which characterize most global initiatives, has somehow restructured the supply chain in producing countries. Recent global sustainability standards require adequate organizational capacity of coffee-farmer groups and rural cooperatives involved in the supply chain. As a result, the author recommends policy integration between bottom-up initiatives at farm level or institutional changes in supply-chain organizations, and top-down sustainability standards set by the private sector and non-government organizations to achieve better environmental governance in the coffee sector.

Publication Date:

2010

Author:

Arifin B.

Journal:

Asian Journal of Agriculture and Development 7(2)

Keywords:

Commodity:

Challenges of sustainable coffee certification in Indonesia.

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Wahyudi-Jati(2012)ChallengesSustainableCoffeeCertificationIndo_ICCRI.pdf

Forty-six coffee companies in Indonesia have currently been certified, producing a total of 47,000 tons of certified coffee per year. This paper examines the challenges of sustainable farming system certification for coffee in Indonesia. Coffee companies were found to engage in coffee certification for a number of reasons, namely as a marketing tool, to reduce risk when prices fluctuate, to make it easier to gather coffee beans from farmers, and to receive a price premium. Among the main challenges highlighted for certification is that smallholders do not fully understand the intention and objective of certification programs, which leads to confusion in responding to complex certification criteria and indicators. The research highlights the differences in implementation of certification programs for smallholders and private and government estates. Certification for smallholders is usually conducted by traders and exporters, while for coffee estates it is conducted by plantation owners. Coffee farmers have no capability to hold certification due to constraints in cost, knowledge, networking and marketing. The authors point to the need for efficient sustainable coffee certification in Indonesia—as well as other ASEAN countries—that is cost effective and globally acceptable.

Publication Date:

2012

Author:

Wahyudi T. and Jati M.

Publisher:

Indonesian Coffee and Cocoa Research Institute, Seminar on the Economic, Social and Environmental Impact of Certification on the Coffee Supply Chain, International Coffee Council 109th Session, London, 25 September 2012

Keywords:

Commodity:

A rapid assessment of the specialty coffee value chain in Indonesia

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Ottoway(2007)RapidAssessmentSpecialtyCoffeeValueChainIndo_USAID_AMARTA.pdf

While the demand for specialty coffee in Indonesia is high, the industry is constrained by its inability to increase production. This study assesses the trade and marketing practices of Indonesian specialty coffee through interviews with different value chain actors— exporters, farmer associations and cooperatives, processors, traders and government representatives—in the provinces of South Sulawesi, North Sumatra, Aceh and Bali. The research identifies a number of key constraints to increasing productivity including lack of coffee traceability, limited on-farm drying and pulping facilities, lack of control of coffee berry borer, and an inefficient coffee representative body. The author makes four key recommendations, namely a proposed intervention on Flores to improve agronomic practices and develop organic coffee; restoring Arabica coffee to tsunami abandoned acreage (>20 per cent) and expanding farmers drying capacity and pulping ability; the use of Broca traps to immediately improve production and quality of Robusta and low altitude Arabica coffees affected by coffee borer; and development of direct market linkages. The report notes that activities addressing some of these recommendations are already underway.

Publication Date:

2007

Author:

Ottaway A.

Publisher:

USAID AMARTA Project

Keywords:

Commodity:

Institutions, the governance of quality and on-farm value retention for Indonesian specialty coffee.

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Neilson(2007)InstitutionsGovernanceQualityOnFarmValueRetentionIndoSpecialtyCoffee_UniSyd.pdf

This paper examines the use of geographical identities as a specific tool for value-adding in agricultural produce, presenting the case of specialty coffee production in South Sulawesi, Indonesia. The study is based on ethnographic research in 21 villages of four major coffee producing districts in 2002 to 2003, with follow up visits in 2005 and 2006. The paper reveals that the potential for producer-driven geographical indications compete with corporate-driven quality constructions, where the later are able to appropriate place-related quality associations by using trademarks, vertical integration and tightly coordinated supply chain controls. An emergent politic of quality governance and ownership in global commodity chains reveals the highly restricted institutional terrain within which growers of specialty coffee might attempt to retain a higher share of the economic rent associated with quality production.

Publication Date:

2007

Author:

Neilson J.

Journal:

Singapore Journal of Tropical Geography 28, 188-204.

Keywords:

Commodity:

Global private regulation and value chain restructuring in Indonesian smallholder coffee systems.

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Neilson(2008)GlobalPrivateRegulationVCRestructuringIndoSmallholderCoffeeSystems_UniSyd.pdf

This paper explores the implications for value chain structures within smallholder coffee systems across Indonesia arising from the establishment of externally authored environmental and social compliance systems. The paper discusses their implications, and sometimes contradictions, thereby highlighting the complexities of applying global ethics locally. These demands are pivotally changing the incentive structures for various value chain participants, leading to changing business strategies and the emergence of new institutional forms. Certain organizations and actors are already emerging as key beneficiaries of these shifting ''rules of the game,'' including producer cooperatives and multinational trading companies. Key findings from this analysis include: (i) the prioritisation of idealized forms of farmer organisation (such as cooperatives) over traditional market-based trade networks; (ii) consolidation among a limited number of exporting firms and the upstream penetration of multinational trading firms; and (iii) trends toward contract farming-style arrangements between multinational coffee companies and producers leading to ''value chain enclosure'' and ''farmer capture.'' Finally, the ability of lead actors to ''govern'' the value chain by specifying compliance requirements across rural Indonesia is changing the relative profitability of various institutional arrangements in the coffee regions of Indonesia.

Publication Date:

2008

Author:

Neilson J.

Journal:

World Development 36(9), 1607-1622

Keywords:

Commodity:

Quality upgrading in specialty coffee chains and smallholder livelihoods in Eastern Indonesia: opportunities and challenges

sudo — Mon, 09 Feb 2015 08:48:24 +0000

NeilsonEtAl(2010)QualityUpgradingSpecialityCoffeeChainsSmallhoderLivelihoodsEasternIndo.pdf

The growth of international specialty coffee markets has increased the demand for high-quality coffee production at origin, offering opportunities for smallholders to engage in product upgrading and potentially increase the farm-gate price of their coffee. This paper examines smallholder farmer engagement in specialty coffee production across the islands of Sulawesi and Flores. The study integrates global value chain analysis with a livelihoods approach to address the critical linkages between quality upgrading in the value chain and farm livelihood strategies, asking the question whether or not quality upgrading directly contributes to improved livelihood outcomes without further institutional support. A key finding from this research is that distinct livelihood strategies affect both the willingness of farmers to participate in value chain upgrading as well as their potential to gain tangible benefits from enhanced value chain integration. The authors suggest that government interventions should no longer focus on areas of market failure or the provision of public goods, but instead areas of rural development not being provided through value chains.

Publication Date:

2010

Author:

Neilson J., Arifin B., Fujita Y. and Hartatri D.F.S.

Publisher:

In 'Proceedings of the 23rd International Conference on Coffee Science, Bali, 3-8 October 2010'

Keywords:

Commodity:

The sustainability of coffee-based livelihoods: a study of social and economic change in rural Indonesia

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Neilson(2012)SustainabilityCoffeeBasedLivlihoodsSocialEconomicChangeRuralIndo_UniSyd.pdf

Recent high coffee prices, due to a combination of rising demand in emerging markets and declining production outside of Brazil and Vietnam, have sparked concerns over the long-term supply of coffee beans. This paper evaluates the potential for expanding production from Indonesia—currently the world's third largest producer—to play a significant role in meeting predicted global demand. The research examines this possibility through a socio-economic assessment of coffee-based livelihoods in Indonesia. The research is based on a survey of household livelihood strategies across Sulawesi and Flores in 2008, and a series of stakeholder interviews with farmers, traders, NGOs and government officials. The findings show that coffee production retains an important function as a de facto social safety net for many impoverished rural households. However, few poor households are choosing coffee production as a viable pathway out of poverty. The author concludes that broader processes of industrialisation and economic development in Indonesia appear to be working against the possibility of Indonesia significantly increasing coffee production in the foreseeable future.

Publication Date:

2012

Author:

Neilson J.

Keywords:

Commodity:

Advantages, constraints and key success factors in establishing origin- and tradition-linked quality signs: the case of Kintamani Bali Arabica coffee geographical indication, Indonesia

sudo — Mon, 09 Feb 2015 08:48:24 +0000

Mawardi(2009)AdvantagesContraintsKeySuccessFactorsEstablishingOriginKintamaniBaliArabicaCoffee_FAO.pdf

Indonesia produces a range of agricultural products with quality reputations based on geographical origin. This report outlines the establishment of geographical indication (GI) for the protection of Kintamani Bali Arabica coffee and implementation considerations for GI systems. It includes background information on GI systems under Indonesian law, characterisation of the Kintamani Bali region and production and quality requirements. Information was collected via desktop study and interviews with various stakeholders in the Kintamani Bali Arabica coffee value chain. Establishment of a GI system requires numerous stakeholders which are detailed in this report along with their roles and the organisation required. An impact analysis encompassing a range of factors such as economic and social impacts, capacity building requirements, successes and opportunities, strengths and limitations is discussed. This program has resulted in: improved farmer understanding of the importance of taste quality and the management practices to achieve it and a collaborative focus by supply chain stakeholders on improving quality. Stakeholder expectations are for sustained premium quality, improved coffee farmer livelihoods, environmental benefits from improved management and greater market opportunities.

Publication Date:

2009

Author:

Mawardi S.

Publisher:

FAO

Keywords:

Bali

Traceability

Commodity:

Coffee

Identification of variety and its suitable cherries processing method for improving specialty Arabica coffees from dry climate area at Flores Island of Indonesia

sudo — Mon, 09 Feb 2015 08:48:24 +0000

MawardiEtAl(2010)IdentificationVarietySuitableCherriesProcessingMethodImprovingSpecialtyArabicaCoffeesFlores.pdf

Indonesia's specialty coffees have distinct and unique taste profiles based on their geographic origin. This paper assesses the impact of three processing methods (wet processed dry hulling (WPDH), wet processed wet hulling (WPWH) or pulped natural (PN)) on the cup profiles of three dominant Flores Arabica varieties ('Juria' (Typica type), S 795 and Hybrid of Timor (HdT)). Dominant varieties were identified through surveys of Arabica coffee farms in the Flores highland area of Ngada Bajawa. Cup profiles were assessed by 44 domestic and international taste panellists and evaluated fragrance and aroma, flavour, acidity, body, after taste, balance and overall preference. S 795 had the preferred cup profile with excellent balance of fragrance and aroma, flavour, acidity, and body with strong sweet tones. Processing method did not have a significant effect on the cup taste profile of S 795. Wet Processed Wet Hulling resulted in improved taste components for HdT. The local variety Juria had lower cup profiles than S 795 and HdT with the best cup profile achieved through Pulped Natural processing.

Publication Date:

2010

Author:

Mawardi S., Yusianto A. and Mars A.

Keywords:

Commodity:

Eastern IndonesiaAgribusiness DevelopmentOpportunities (EI-ADO) - Coffee

Establishment of geographical indication protection system in Indonesia: case in coffee.

Global sustainability regulation and coffee supply chains in Lampung province, Indonesia.

Challenges of sustainable coffee certification in Indonesia.

A rapid assessment of the specialty coffee value chain in Indonesia

Institutions, the governance of quality and on-farm value retention for Indonesian specialty coffee.

Global private regulation and value chain restructuring in Indonesian smallholder coffee systems.

Quality upgrading in specialty coffee chains and smallholder livelihoods in Eastern Indonesia: opportunities and challenges

The sustainability of coffee-based livelihoods: a study of social and economic change in rural Indonesia

Advantages, constraints and key success factors in establishing origin- and tradition-linked quality signs: the case of Kintamani Bali Arabica coffee geographical indication, Indonesia

Identification of variety and its suitable cherries processing method for improving specialty Arabica coffees from dry climate area at Flores Island of Indonesia

Eastern Indonesia
Agribusiness Development
Opportunities (EI-ADO) - Coffee