Marketing analysis and feasibility analysis of coffee (Coffea sp)

Abstract

Coffee is a natural resource that has economic value and is also a mainstay commodity for most farmers and is increasingly promising as the market expands. The purpose of this research is to identify and analyse the marketing flow and to analyse the feasibility of a coffee business. This study uses data analysis to see the feasibility of a business by looking for total costs, total revenue and revenue cost ratio (R/C). The results obtained from this study indicate that the coffee marketing channel has 2 different channels involving farmers, small traders, level 1 collectors and consumers. The business feasibility of this study shows that the total fixed costs incurred are IDR 1,000,000/year and the total variable costs incurred is IDR 6,000,000/year, so that the total costs incurred are IDR 7,000,000/year. The revenue obtained is 9,600,000 IDR/year, the result is obtained from a total production of 480 kilos and a selling price of 20,000 IDR/kilos, per kg. The conclusion is that coffee deserves to be done development because the R/C obtained > 1 is 1.37.

Profitability of coffee-based agroforestry system to support farmers’ income in Toba Regency, North Sumatra Province, Indonesia

“…Economic analysis is applied to evaluate the performance of a system based on the benefits derived from the inputs used in the system. It helps to determine the economic benefits that can be obtained from the use of various crop combinations in agroforestry systems [2,17]. To calculate the economic value obtained by farmers, the following formula can be used: Based on the profitability analysis of coffee-based agroforestry land owned by farmers, the results are presented in Table 2.…”