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Asian Journal of Agricultural Research
  Year: 2018 | Volume: 12 | Issue: 1 | Page No.: 1-9
DOI: 10.3923/ajar.2018.1.9
 
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Arabica Coffee Agroindustry Cost Requirement Analysis at Margamulya Coffee Producers Cooperative

Tuti Karyani , Endah Djuwendah, Agriani Hermita Sadeli , Sesilia Kirana and Nurul Risti Mutiarasari

Abstract:
Background and Objective: The research analyze coffee agribusiness as one of the potential commodity that produced in Margamulya Coffee Producers Cooperative (MCPC) Bandung Regency. The purpose of this research was to explore business linkage between coffee farmers and cooperatives and analyze farming costs and cooperative operating costs on the agro-industry process at Cooperative level. Material and Methods: The research used case study and analyzed by value chain mapping and Porter Model approach to analyzed Arabica coffee agroindustry cost requirement. Results: The MCPC, which consists of 140 farmers, focus its business process on processing and marketing sub-systems, while, the farmers concentrate its business on farm sub-systems. Processed cherries in the form of green beans and roasted bean has been exported, with constituted 80 and 20%, respectively, while grounded bean sold to other market destinations, such as e-commerce and cafes around Bandung. Based on Porter Cost Analysis, production cost on coffee plant maintenance at farmer level was IDR3,849 per tree per year. The most significant cost proportion was farmer operation cost, which used for fertilization cost, plant maintenance, pest eradication and plant depreciation, with 41.57%. In Cooperatives level, the cost of production per year was IDR4, 235, 675, 207 and the largest cost proportion was purchasing cost of cherry and grain (horn skin) raw materials (accounted for 89.72%). Conclusion: Farmers were suppliers of raw materials for the business of MCPC in the form of cherry coffee which was then processed into green bean, roasted beans and ground beans. Both farmers, processing farmers and cooperatives require the largest fees for primary activities directly related to their business, not for management strengthening or technology development activities.
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How to cite this article:

Tuti Karyani, Endah Djuwendah, Agriani Hermita Sadeli, Sesilia Kirana and Nurul Risti Mutiarasari, 2018. Arabica Coffee Agroindustry Cost Requirement Analysis at Margamulya Coffee Producers Cooperative. Asian Journal of Agricultural Research, 12: 1-9.

DOI: 10.3923/ajar.2018.1.9

URL: https://scialert.net/abstract/?doi=ajar.2018.1.9

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