Study on Coffee Marketing and Farmer Organization in Pasuruan District

Abstract

Complexity of coffee supply chain system encourages business actors to optimize supply chain management as an effort to increase market transparencyamong them. Consolidating in farmer organization was required to strengthen bargaining position of farmer for facing the complexity of supply chain system.The aim of this research was to analyze supply chain and marketing margin on coffee marketing; and to analyze the characteristics of coffee farmer organization.This research was conducted in Pasuruan district as one of coffee producing area in East Java. Number of respondents were 18 that consisted of 16 farmersand 2 extension officers. The respondent was determined by snowball sampling method. The data was considered a primary data and secondary data was usedas supporting data. Data were analyzed by using descriptive method and marketing margin analysis. The result showed that coffee marketing chain in Pasuruan district would lead to a relatively long and complex which was dominated by collectors. The highest profit of Arabica coffee marketing received by collectors was gained by selling green beans. On the Robusta coffee marketing, the highest profit was derived by selling fresh cherries. Farmer organizations could not be able to improve their bargaining position and market access as a result of weakness on the role and function of them.