Mitigation of gayo arabica coffee supply chain risk using the house of risk method in Aceh Tengah

Abstract

Aceh Tengah District is the largest Gayo Arabica Coffee production area in Aceh Province. Therefore, coffee has an important role in the economy of the people of Aceh Tengah, both as a source of income for coffee farmers, a source of foreign exchange and as a provider of employment through processing, marketing and trading activities. However, Gayo Arabica Coffee farmers are often faced with many obstacles and risks in run their business. The aim of this research is to analyze the risks with the highest impact on the Gayo Arabica Coffee supply chain and formulate mitigation to reduce the risk impact on it by using the House of Risk (HOR) method. Based on the research results, 42 risk events and 37 risk agents were obtained and 7 dominant risk agents were obtained which could be prevented with 9 mitigation strategies. The risk with the highest impact on the Gayo Arabica Coffee supply chain in Aceh Tengah District is assessed based on the highest to lowest Aggregate Risk Potential (ARP) value using the 67:20 Pareto Diagram. Mitigation strategies for Gayo Arabica Coffee supply chain risks in Aceh Tengah District are assessed based on the Effectiveness to Difficulty (ETD) value from highest to lowest.