Distribution and Efficiency Analysis of Commodity Trading of Robusta Coffee in Silo District, Jember Regency

Abstract

The need for coffee in the world is increasing every day, especially in developed countries like Germany, Japan and America. One of the largest producers of Robusta coffee in the world is Indonesia, producing the same from various regions such as the Silo District, Jember Regency. Silo coffee is certified by Bank Indonesia. However, the rapid growth of coffee demand is inversely proportional to the situation of coffee farmers in Jember Regency. One of the prime challenges of coffee farmers in the Silo district is the inefficiency of the trade value chain, from upstream to downstream. The farmers here mainly adopt three trading channels/systems; each trade system has different efficiency levels, whereby the price offered to the farmers varies according to the quality of the Robusta coffee beans sold. The drier the water content, the higher the price that is offered to the farmer.