The Robusta coffee value chain in Wonogiri Regency, Central Java, Indonesia in this study is investigated from the structure, economic performance, and the role of the producers in enhancing smallholder integration. Data were collected via mixed methods from 33 respondents including farmers, producer organisations, collectors, wholesalers, processors, and cafe owners. Seven marketing channels were identified: traditional routes dominated by intermediaries to more vertically integrated routes involving producer organisations and small–medium processors. Value chain mapping showed that farmers produce mostly fresh cherries, and downstream players do major value–adding activities like drying, hulling, roasting, grinding, and packaging. Economic analysis showed that marketing margins and profit vary considerably between channels. Profits reached Rp 61,070/kg in channels where producer organisations and small–medium processors perform downstream processing. On the contrary, traditional channels gave collectors and wholesalers the highest margins, while farmers received low returns. Across channels led by producer organizations, the share of the final consumer price ranged from 34.48% to 44.62%. Results indicate that organisational coordination, value addition, and market access are necessary for smallholder benefits improvement. Despite positive trends, challenges including limited processing capacity at the farm level, poor infrastructure, and weak market linkages remain. A strong producer organisation, improved access to processing technologies, and institutional support are necessary for inclusive and sustainable value chain development.
Widadie et al. (Thu,) studied this question.
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