Journal of Economic, Bussines and Accounting (COSTING)
Vol 7 No 4 (2024): Journal of Economic, Bussines and Accounting (COSTING)

Evaluation Of Coffee Supply Chain Performance Using Value Chain Analysis And Fishbone Diagram (Case Study On Coffee Farmers In East Java)

Amilia Azzahro (Institut Teknologi Sepuluh Nopember)
Syarifa Hanoum (Institut Teknologi Sepuluh Nopember)



Article Info

Publish Date
21 Jul 2024

Abstract

Coffee has grown into a high-value commodity in international trade, contributing significantly to global GDP and creating millions of jobs worldwide. This study aims to analyze the value chain of the coffee industry in East Java, identify the root cause of the low margins obtained by coffee farmers, and provide recommendations to increase their income and efficiency in the supply chain. The methodology used included primary data collection through in-depth interviews with coffee supply chain actors in East Java and analysis using fishbone diagrams to identify factors causing low margins of coffee farmers, such as limited market access, inadequate processing equipment, and conventional drying methods. The results of the study show that coffee farmers get the lowest profit margin, less than 10%, due to low efficiency and productivity. The recommendations included digital technology training, financial assistance for equipment, and low-interest credit programs for coffee farmers. The implementation of this recommendation is expected to increase the efficiency, productivity, and profit margins of coffee farmers in East Java, increasing their competitiveness in the global market. The study also highlights the need for multi-stakeholder support and long-term evaluation to measure the effectiveness of proposed interventions.

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Journal Info

Abbrev

COSTING

Publisher

Subject

Economics, Econometrics & Finance

Description

COSTING : Journal of Economic, Bussines and Accounting reviewed covers theoretical and applied research in the field of Economics, Business and Accounting. Priority is given to those articles which satisfy the main scope of the journal, and have an impact in the research areas of interest. ...