Although Arabica coffee prices may be favorable in certain periods, increased production during peak harvest seasons can create excess supply and expose farmers to price declines, particularly when farmers rely mainly on selling coffee cherries or green beans with limited value addition. Therefore, downstream processing is needed to capture higher added value and reduce farmers’ vulnerability to market volatility. This study aims to analyze the added value generated from Arabica coffee processing and map the business model adaptation of farmer groups in Trawas District, Mojokerto Regency, East Java Province. The study was conducted from January to June 2023 using a mixed-methods approach that combined quantitative value-added analysis with qualitative Business Model Canvas mapping. The Hayami method was used to calculate value added, while interviews, field observations, and focus group discussions identified business model components and development strategies. The results show that processing red coffee cherries into green beans generated an added value of IDR 4,975.00/kg with a value-added ratio of 39.48%, indicating a moderate level of value creation. In contrast, processing green beans into ground coffee generated a much higher added value of IDR 102,250.00/kg with a value-added ratio of 90.88%, indicating a high level of value creation. These findings demonstrate that downstream processing into ground coffee provides substantially greater economic benefits than green bean processing. Practically, farmer groups need to strengthen processing capacity, product quality control, packaging, branding, digital marketing, and institutional partnerships to capture higher value and reduce vulnerability to price fluctuations caused by excess supply during peak harvest periods.