After crude oil, coffee is the most traded commodity in the world From that figure, only about 30% of the world’s coffee is consumed in coffee-producing countries, the rest is exported to consuming countries such as Finland, Norway, the Netherlands, Germany and America. In recent years, total world coffee production has remained relatively constant while demand for coffee has increased significantly. Indonesia produces various types of special Arabica coffee such as Gayo coffee, Java coffee, Toraja coffee, Lintong coffee, Bajawa coffee, and Robusta coffee such as Java Robusta and Robusta Flores. Domestic coffee consumption is low, only around 3.3 million sacks of green green coffee per year. The rest, which is around 7.7 million, or about 70% of its production, both in the form of green beans and roasted coffee, is exported to Germany, USA, Japan and Italy. Of the total exports, around 25-30% are high quality Arabica coffee. E-commerce technology can play an increasingly important role in empowering such a traditional industry of agriculture. The technological underpinnings of e-commerce avail to expand the market channels of agricultural products, realizing the scale and organizational realm of agricultural product circulation, reducing the intermediaries of distribution, and reducing transaction costs. Recent studies have suggested that e-commerce helps firms to increase the information flow of agricultural products, reduce asymmetric information of farm products, and promote the creation of traceability information system for agricultural product chains. E-commerce can be part of developing a conceptual foundation for agricultural studies in the modern era and provide an understanding of the potential positive values of e-commerce.
This form of agricultural acceleration requires considerable effort as a form of capacity building, agricultural production, as well as developing agricultural product innovations into processed products that have economic value, and are multipurpose. Business in the field of coffee farming has a long and complicated supply chain that is often encountered from upstream to downstream and is also one of the obstacles in developing business in the Arabica coffee sector. The success of sustainable rural agricultural development in Indonesia is very important so that the expected results can ultimately contribute to the country’s economic stability and support the country’s economic growth. Indonesia’s agricultural sector has played a major role in supporting the country’s stability, as well as in improving quality and production to meet the growing national food needs. Thus, agricultural development efforts are focused on increasing production levels through land expansion and agricultural intensification. The increasing adoption of sustainable agriculture is attracting the attention of governments and farmers, especially companies and end consumers, with the increasing awareness of sustainability in agriculture which has become the concern of the global market, many producers are competing to improve their products from year to year. On the one hand, the benefits of sustainable agriculture can also be seen from consumer interest, starting with an increasing preference for environmentally friendly products and services. On the other hand, the enthusiasm of several parties in establishing relationships with other companies that have implemented sustainable agriculture programs is an effective and good way in agriculture.
Arabica coffee owned by Toraja especially North Toraja is very distinctive with the aroma and flavor produced so that it becomes its own attraction in the hearts of coffee enthusiasts everywhere. But behind the taste and aroma that is very unique there are many problems faced by Arabica coffee farmers in Toraja in particular. This study aims to analyze the potential of North Toraja Arabica coffee agribusiness, which is then followed by studying the benefits that can be done by using the concept of organic farmers to create an appropriate strategy to improve quality in Arabica coffee agribusiness competition. Data taken using observations and direct interviews in the form of a questionnaire to farmers that includes how much can be produced each harvest season, and the price received each sell the harvest to collectors, companies, and several parties who participated in this research. Primary data used in this study are quantitative and qualitative data. The results of this study indicate that the Arabica coffee owned by Toraja has the potential, farmers as producers have a very big role in improving the performance of Arabica coffee development programs. However, observations show that policies in developing human resources in rural areas, especially in terms of farmers’ quality and skills, are relatively not working as expected. To reduce the level of dependence of farmers to traders, it is necessary to strive for financial institutions that are able to provide capital needs to farmers in a fast time without complicated procedures. Therefore farmers have alternatives to choose marketing channels that can provide better prices.
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