Strategy Directions for the Potential Development of Robusta Coffee Based on Social Forestry with Value Chain and Added Value Approaches

Abstract

LMDH “Rengganis” Pakis Village, Panti Subdistrict, Jember Regency is one of the social forestry programs that involves forest village communities to use it for productive activities and to improve the economy of rural communities around the forest. However, along the way, it faces many obstacles, including the lack of knowledge of farmers, the facilities for developing agro-industry and cooperative institutions at the village level are still limited. The purpose of this study is to design a strategy for developing the Value Chain of coffee products and Added Value of coffee products, as well as to identify opportunities to increase the economic value of coffee products. The method used is descriptive exploratory by determining the area purposively. The analysis technique used is Value chain analysis (VCA) and added value analysis (AVA). The method of collecting data is using a questionnaire through in-depth interviews. The data used consists of primary data and secondary data. Conclusions: (a) Based on the value chain analysis where the main and supporting activities to build the value chain are carried out entirely in the LMDH "Rengganis" work area including inbound logistics, operations, outbound logistics, marketing, and services. While the supporting activities include: firm infrastructure, HRM, Technology development and procurement that are integrated and coordinated to achieve value added from each coffee product processing segment, (b) The value chain is built from processing cherry coffee to ground coffee as follows: (1) The yield of processing green bean coffee is 48%, roasted coffee 72% and coffee powder 70.25% (from green bean coffee), (b) The added value of processing green bean coffee is Rp. 6,690/kg, roasted coffee is Rp. 58,500/kg and Rp. 20,251 /kg, (c) Percentage of added value for processing green bean coffee 49.78%, roasted coffee 65%, and roasted coffee 13.97%, (d) Labor income for green bean coffee Rp 2500/kg, roasted coffee Rp 1,000/kg , and roasted coffee Rp. 694.44/kg, and (e) Margin to the company's profit from processing green bean coffee Rp. 6.940/kg (60.37%), roasted coffee Rp. 62.000/kg (92.74%), and roasted coffee Rp. 27,041/kg (73.39%).