Value chain analysis of Toraja coffee

Abstract

Abstract Toraja Coffee is one of the most famous coffee in the world, which was produced in the Tana Toraja Regency. Although its level of production is not too high, this coffee has a high demand from connoisseur around the world. The problems that occurs at this time is that coffee plantations are generally in poor condition because of the limitations of farmers in capital, knowledge, cultivation, and management of results. Using the Value Chain Analysis might help to find out how far the role of each stakeholder involved which is directly related to the benefits received by each stakeholder. Thus, it will be able to provide supporting data to make some policies that can be taken to improve the value chain that is still considered as an inappropriate value chain. This study aims to analyze the value chain of the Toraja coffee commodity. The study was conducted in Tana Toraja Regency, South Sulawesi in 2018. The research method used in this research is quantitative descriptive which is used to analyze the total costs, revenues, revenues, and margins obtained by each value chain actor. The analytical approach used in this research is the quantitative analysis approach. The results showed that the Toraja coffee value chain shows the highest margin of the main value chain actors are household processing industry and collector who sells coffee outside the district. It can be concluded that it is important for the farmers to broaden their knowledge about the value chain of coffee and to give added value to their product to get higher revenue.

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