Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
The Value Chain Analysis of Coffee Products in the Case of Bandung District Leni Herdiani*1.
Maun Jamaludin2.
Melinda Aprilia Rizkinita3.
Iman Sudirman4.
Ismet Rohimat5 Universitas Langlangbuana.
Indonesia*135 Universitas Pasundan.
Indonesia24 herdiani@gmail.
com*1, maun.
jamaludin@unpas.
id2, melirzknta@gmail.
imansudirman@unpas.
id4, ismet.
rohimat@gmail.
Abstract: Coffee, a significant plantation product, holds vast opportunities in both domestic and global markets.
Bandung Regency is renowned for its distinctive fruit-flavored coffee, particularly from Ciwidey and Puntang, where coffee is marketed in cherry and green bean forms without branding.
A value chain analysis is essential to enhance the coffee industry's added value and This study aims to identify the coffee value chain in Bandung Regency, analyze the cost of production, total revenue, and profit of the coffee processing industry in Ciwidey and Puntang, and determine the added value of coffee products in these areas.
Using descriptive analysis, results indicate that Ciwidey (MS Coffe.
has a lower cost of goods produced than Puntang (Acs Siliwang.
due to higher production volumes in Puntang leading to higher costs.
However.
PuntangAos larger production volume also generates higher monthly revenue and profit due to a higher selling price per kilogram.
Value-added analysis reveals that PuntangAos value-added per kilogram (Rp.
55,025.
00/k.
surpasses that of Ciwidey (Rp.
44,647.
00/k.
, attributed to higher selling prices, superior product quality, and greater market presence in Puntang.
Conversely, higher input prices in Ciwidey result in lower value-added.
Keywords: Cost Analysis.
Profit.
Revenue.
Value-Added.
Value Chain Analysis INTRODUCTION Currently, coffee has an increasing level of existence in society and is in demand domestically and internationally.
Coffee is a type of plantation crop that has long been cultivated in Indonesia which has a high economic value and acts as a source of foreign exchange (Latunra et al.
, 2.
Coffee is one of the leading commodities and has good opportunities domestic and international opportunities in the plantation subsector.
The export value of coffee is in third place after the export value of rubber and coconut (Ratna et al.
, 2.
Coffee has a key role as a source of foreign exchange income and can have quite a good influence, especially for local farmers because coffee is a source of income obtained by local farmers.
Indonesian coffee products have a variety of types that, if properly utilized, can increase competitiveness by improving production activities and maintaining quality (Raharjo.
et al.
, 2.
Coffee was first introduced to Indonesia around 1646 by the Dutch, who received Arabica mocha beans from Arabia.
As a major agricultural product, coffee contributes significantly to the Indonesian economy.
It is not only important as a source of income for farmers and industrial producers, but also as a foreign exchange earner, job creator, and driver for regional development (Lestari and Anindita, 2018 in Ruwiyati et al.
, 2.
However, the coffee agribusiness in Indonesia faces complex challenges from upstream to downstream.
Indonesia's coffee productivity is lower in the upstream sector than in the world's main coffee-producing countries (Rahayu et al.
, 2.
Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
In the case of coffee, farmers have more room to maneuver.
In other words, this commodity has high potential value, allowing farmers to gain more profits through simple and inexpensive processing activities.
However, the current supply chain is long and complex, limiting their opportunities to do so.
Previous studies have shown that these traditional supply chains have intensified competition to the detriment of small farmers (Mayne & Kirwan, 2010.
Renting et al.
, 2003 Umaran et al.
, 2.
Long supply chains make it difficult for farmers to capture more value, as most of it is distributed to other This has reduced the sustainability of Indonesia's coffee supply chain by creating risks that can affect the economy, environment, and society (Bashiri et al.
, 2.
To increase the sustainability of the coffee industry as a highly competitive agricultural product, it is essential to pay attention to the value chain aspects of business entities in the coffee supply chain from upstream to downstream.
One strategy that coffee farmers must adopt is to process coffee beans into ready-to-eat ingredients or products (Njikh et al.
, 2.
This research focuses on the value chain problem of Arabica coffee.
In Ciwidey, the superior product is MS Coffee, while in Puntang, it is Acs Siliwangi.
Maintaining the supply and quality of coffee is one of the efforts to increase the value proposition and maintain customer relationships (Yusuf, 2.
A value chain analysis was conducted to assess the potential of each chain in the coffee industry and increase its added value.
Value Chain Analysis is a strategic approach used to evaluate a company's internal By assessing these activities, the analysis identifies areas where a company may have competitive advantages or disadvantages.
Research by Wongpit P.
et al.
developed a coffee value chain framework to outline the roles and activities of various actors.
Their analysis of coffee productivity highlighted that low productivity levels in Indonesian coffee plantations stem from farmers' limited knowledge of coffee Yusuf E.
et al.
assessed the value chain and performance to evaluate sustainability across environmental, economic, social, marketing, and policy dimensions, and proposed sustainability strategies and business models.
Effendi M.
performed a value chain analysis by mapping the actors, volume, and value of The coffee value chain involves four primary actors: farmers, collectors, first-stage processors, and second-stage processors.
Singh S.
and Pratama R.
Salikudin M.
identified these actors and their roles in adding value, examined the strength of their linkages, and analyzed factors influencing coffee cooperatives in developing an effective value chain.
Furthermore, improving coffee marketing requires better infrastructure (Hirpato A.
, 2.
Herdiani L.
et al.
demonstrated that value chain analysis adds value at each stage of production and delivery, encompassing both primary and supporting activities.
Value chain analysis involves mapping, qualifying, and economically analyzing the value chain.
Porter's value chain analysis can scrutinize each segment of value chain activities, encompassing both primary and support activities.
According to Wijaya .
, conducting a value chain analysis is crucial for identifying the effectiveness and efficiency levels of each activity within the value chain.
Moreover, the primary function of the value chain is to minimize production costs to enhance profitability.
The value chain demonstrates the overall value comprising value-adding activities and margins.
Valueadding activities are physically and technologically distinct, while the margin represents the disparity between total value and the collective costs of executing these activities (Porter, 1994, as cited in Idsan R.
et al.
, 2.
Added value is achieved through refining inputs or raw materials in the production process, resulting in enhanced value.
This augmentation of added value can be achieved by transforming coffee into finished products (Manesa T.
, 2.
The magnitude of balanced added value significantly Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
influences the sustainability of supply chain operations, proving highly advantageous for all participants in the coffee agro-industry supply chain (Sriwana K.
et al.
, 2.
Nugraha et al.
proposed policy recommendations to amplify added value for coffee farmers and facilitated through quality improvement, product differentiation, and closer relationships with buyers (Stofya, 2.
Farmers must broaden their understanding of the coffee value chain and augment the value of their products to secure greater incomes (Salam M.
et al.
, 2.
Value added is the increase in value that occurs because a commodity undergoes processing, transportation, and storage in a production process .
se or provision of functional input.
(Herdiani et al.
, 2.
Added value is the economic value added to a product or service offered to consumers.
offered to consumers.
The value added is influenced by technical factors and non-technical factors.
The information or outputs obtained from the results of the added value analysis are the amount of added value, the value and margin ratio, and the remuneration received by the owners of production factors (Hutauruk et al.
, 2.
The Hayami method can measure how far raw materials/input are treated so that in this case the processing industry can increase Hayami is called a method that is easy to use and easy to understand to obtain complete information (Hasni et al.
, 2.
The Hayami method is utilized to analyze added value within the processing subsystem or secondary production.
This method yields insights into productivity, output value, added value, labor services, and the profits derived from the processing activities.
It specifically measures the added value created by actors involved in processing that alters the product's form and enhances its price.
Given the local community's limited interest in coffee products, it is essential to bolster coffee processing efforts by engaging key stakeholders crucial for developing a comprehensive value chain.
This approach is vital as the coffee value chain plays a significant role in sustainable development (Canwat, 2.
Integrating sustainable practices into the value chain can boost added value, improve market access, and foster local economic growth (Stofya, 2.
Consequently, this study aims to identify the coffee product value chain in Bandung Regency, especially in the Ciwidey and Puntang analyze production costs, total revenue, and profits in the local coffee processing and determine the added value of coffee products in these regions.
Overall, value chain evaluation is very important for coffee producers and companies to identify areas that need improvement and increase their competitiveness in national and international markets.
Processors can find opportunities to reduce costs, add value, increase efficiency, and improve sustainability by conducting a comprehensive review at each stage of the value chain.
This move will ultimately result in higher profitability and a more sustainable business model (Khatri, et.
al, 2.
METHODS The research employs an analytical descriptive method, concentrating on current issues by gathering data that is subsequently organized, clarified, and analyzed (Surakhmad in Sundari et al.
, 2.
This descriptive approach aims to provide a comprehensive overview of each analysis unit based on the relevant data.
Data is the raw material for information resulting from data processing, which can be used to increase knowledge for recipients (Suliyanto, 2018 in Haryadi and Bramasto, 2.
This research was conducted in Ciwidey and Puntang.
Bandung Regency.
The data collection method involved interviews, literature studies, and observations.
The data analysis methods used are Porter's value chain analysis, cost and profit analysis, and added value analysis.
Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Value chain analysis helps reveal how value is generated at each stage of production or service delivery to the end consumer (Herdiani et al.
, 2.
The activities within the coffee value chain include both primary and supporting activities.
Cost analysis is conducted to assess the profits earned by farmers.
Additionally, a value-added analysis is performed using the Hayami method.
This method, applicable across various companies within the supply chain, enables the determination of added value, output value, and productivity (Karyani et al.
, 2018.
Baihaqi et al.
, 2020.
Sundari et al.
, 2021.
Ruhyana et al.
, 2.
According to Hayami and Kawagoe, as cited in Sundari et al.
, the procedure for calculating added value includes components such as output, input, price, revenue, and profit.
The conceptual framework in research can be illustrated as shown in Figure 1.
Field Study:
Observation Interview Study of literature Formulation of the problem :
What is the value chain for coffee products in Bandung Regency, especially MS Coffee and Acs Siliwangi products? What are the production costs, total income and profits obtained in the coffee processing industry at MS Coffee and Acs Siliwangi? What is the added value of coffee products in the MS Coffee and Acs Siliwangi processing industries? Objective :
Identify the coffee product value chain in Bandung Regency, especially MS Coffee and Acs Siliwangi Analyze the cost of production, total revenue, and profits obtained in the coffee processing industry at MS Coffee and Acs Siliwangi.
Determine the added value of coffee products in the MS Coffee and Acs Siliwangi processing Descriptive Analysis:
Production Process Porter's Value Chain Analysis of Production Costs and Profits:
Cost of Goods Sold Total Receipts Profit Value Added Analysis:
Calculation of Added Value using the Hayami Method Analysis and Discussion Conclusions and recommendations Figure 1.
Research Framework Source: Processed by researchers .
RESULTS AND DISCUSSION The Coffee Value Chain of MS Coffee and Acs Siliwangi Coffee plant diversification includes cherries processed into green beans until the final processing into powdered coffee presented in the form of an industrial tree.
The following Figure 2 shows the coffee industry tree from cherry raw material to powdered coffee.
Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Coffee Fruit/ Cherry Flesh of fruit Alcohol Coffee Bark Mulch Coffee Instant Greenbean Coffee Plants Decaffeinated Coffee Tablet Coffee Food Caffeine Drink Pulp Wood Wood Cotton Figure 2.
Industrial tree of coffee plants to products Source: Processed by researchers .
In processing packaged powdered coffee products, several stages of the process can be observed as depicted in Figure 3.
Harvest Peeling Fruit Skin Fermentation Washing and Drying Peeling Coffee Grain Skin Sorting Roasting Coffee Beans Grinding Packaging Figure 3.
Coffee product processing Source: Processed by researchers .
Meanwhile, explanations regarding the primary activities and supporting activities found in the coffee product value chain can be seen in Figure 4.
Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
MS COFFEE AND ACS SILIWANGI PROCESSING INDUSTRY INFRASTRUCTURE
(Road access to the ground coffee product processing industry in the MS Coffee and ACS Siliwangi processing industries is adequat.
HUMAN RESOURCES
(The workers' abilities in picking and carrying out the production process were trained by the coffee processing business owners MS Coffee and ACS Siliwang.
PRIMA
ACTIVI
TECHNOLOGY DEVELOPMENT
(Has semi-modern production equipment, namely using machines assisted by human powe.
PROCUREMENT
(Raw materials, supporting materials, as well as machines and equipment are obtained from local areas in Bandung Regenc.
SUPP
ORTIN
ACTIVI
INBOUND
LOGISTICS
OPERATIONS
Procurement of Raw Materials for Coffee Fruit (Cherrie.
Production Process of Packaged Ground
Coffee Gardens owned by local farmers in the Ciwidey and Puntang areas are planted on Perum
Perhutani land
Peeling Fruit Skin
OUTBOUND
LOGISTICS
Fermentation Washing and Drying Peeling Coffee Grain Skin Coffee Sorting Roasting Coffee Beans MARKETING & SALES Marketing is carried out directly and not through social media or ecommerce.
Meanwhile, product purchases are made by visiting the processing place directly and can also be delivered by the owner of the processing business if the consumer buys in a predetermined Grinding Packaging Harvesting Coffee Fruit (Cherrie.
Coffee Fruit Processing (Cherrie.
Pemasaran Consumer Figure 4.
Porter Value Chain Analysis of MS Coffee and Acs Siliwangi Coffee Products Source: Processed by researchers .
The coffee processing value chain into packaged powdered coffee products of MS Coffee and Acs Siliwangi involves two main actors: farmers who act as cherry pickers, providing raw materials for production, and serving as processors to produce quality products ready for marketing.
Additionally, business owners who also serve as distributors play a role in marketing coffee products until they reach consumers.
Both processing facilities in these areas procure their coffee cherries from their plantations, ensuring that the required raw materials are always available every month and thus eliminating the need for external suppliers.
Primary activities in the coffee product value chain in the Ciwidey and Puntang regions have been running smoothly.
However, there is a need for further improvement in inbound logistics and marketing, sales, and service activities because both of these activities play a crucial role in increasing product sales.
The goal is to expand the market and make it easier for consumers to obtain the products.
Meanwhile, supporting activities that need improvement include technology development.
As time passes and production volume increases, there will be a need for more modern machinery and equipment with larger capacities.
Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Analysis of Production Costs Production cost analysis of packaged powdered coffee at the MS Coffee processing facility and Acs Siliwangi processing facility is presented in Table 1.
Table 1.
Cost of Production MS Coffee and Acs Siliwangi Calculation of Cost of Goods Production MS Coffee Acs Siliwangi Information Amount Information Indirect Raw Material Costs 362,500Indirect Raw Material Costs Direct labor costs 540,000Direct labor costs Factory Overhead Costs 3,134,078Factory Overhead Costs Cost of Goods Production/Month 4,036,578Cost of Goods Production/Month Number of Packaged Ground 100 pcsNumber of Packaged Ground Coffee Production/Month Coffee Production/Month Cost of Production/pcs 40,366Cost of Production/pcs Cost of Production/Year 48,438,936Cost of Production/Year Source: Processed by researchers .
Amount
825,000
2,080,000
10,375,972
13,280,972
200 pcs
66,405
159,371,664
Total Revenue Total monthly revenue obtained by MS Coffee and Acs Siliwangi in Table 2.
Table 2.
Total Revenue of MS Coffee and Acs Siliwangi Total Revenue MS Coffe.
Acs Siliwangi Information Amount Information Amount Product MS Coffee Product ACS Siliwangi Production result 100 pcs/200 gram Production result 200 pcs/250 gram Price/Pack 60,000Price/Pack 87,500 Total Revenue/Month 6,000,000Total Revenue/Month 17,500,000 Total Revenue/Year 72,000,000Total Revenue/Year 210,000,000 Source: Processed by researchers .
Profit Profit is the reward received by the owners of both processing facilities located in (MS Coffee and Acs Siliwang.
, where it is obtained by subtracting the total revenue from the cost of production, which includes all expenses incurred during the production process (Table .
Table 3.
Total profit of MS Coffee and Acs Siliwangi Total Profit MS Coffee Acs Siliwangi Information Amount Information Amount Total Revenue/Month 6,000,000Total Revenue/Month 17,500,000 Cost of Goods 4,036,578Cost of Goods 13,280,972 Production/Month Production/Month Profit/Month 1,963,422Profit/Month 4,219,028 Profit/Pcs 19,634Profit/Pcs 21,095 Profit/Year 23,561,064Profit/Year 50,628,336 Source: Processed by researchers .
Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
Value Added Analysis The results of value-added calculations for packaged powdered coffee products of MS Coffee and Acs Siliwangi using the Hayami method (Hutauruk et al.
, 2.
(Effendi et al.
, 2.
are presented in Table 4.
Table 4.
Calculation of Added Value of MS Coffee and Acs Siliwangi Coffee Products Variable Formulation Value of Ciwidey Regional Coffee Products (MS Coffe.
Output.
Input.
Price Output .
g/mont.
Raw Material Input (Cherrie.
g/mont.
Labor (HOK) .
Conversion Factor = .
Labor Coefficient (HOK/k.
= .
Output Price (Rp/k.
300,000 Average Labor Wage (R.
46,875 Revenue and Profits Price of Raw Materials .
(Cherrie.
(Rp/k.
Other Input Prices (Rp/k.
9,898 Output Value (Rp/k.
= .
54,545 Added Value (Rp/k.
= .
- .
- .
44,647 Value Added Ratio (%) .
= .
x 100% Labor Income (Rp/k.
= .
15,584 Labor Share (%) .
= .
x 100% Profit (R.
= .
Ae .
29,063 Profit Rate (%) .
= .
x 100% Remuneration for Production Factor Owners Margin (Rp/k.
= .
Ae .
54,545 Direct Labor Income (%) .
= .
x 100% Contribution of Other Inputs .
= .
x 100% (%) Processor Profit (%) .
= .
x 100% Source: Processed by researchers .
Value of Puntang Regional Coffee Products (Acs Siliwang.
350,000 113,750 7,475 62,500 55,025 29,713 25,312 62,500 Based on the analysis by Hayami, the positive added value (> .
indicates that the development of the packaged ground coffee processing industry in both regions adds value for farmers.
Furthermore, according to Reyne's criteria .
as cited in Salsabila, et al.
, the added value of processing packaged ground coffee products in these regions is classified as high, exceeding 40%.
The value chain of packaged powdered coffee processing in MS Coffee and Acs Siliwangi involves two main actors: farmers who serve as cherry pickers, suppliers of raw materials, and processors in producing quality products ready for the market, as well as business owners who also act as distributors, playing a role in marketing coffee products until they reach consumers.
Although the overall coffee product value chain in the Ciwidey and Puntang areas has been running smoothly, it is not without obstacles posed by external parties or the value chain actors themselves.
Some of these obstacles include: .
The produced products lack attractiveness to consumers, particularly in Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
terms of packaging, which appears ordinary, leading to poor sales.
There is incomplete information available, and the placement of the expiration date on the packaging edge makes it difficult for consumers to find.
Packaging is only adorned with stickers rather than direct printing.
Therefore, packaging should be made according to recognized standards and consider the aesthetic factor of the product to enhance its sales.
The distribution of packaged powdered coffee products in both Ciwidey and Puntang areas mainly targets local communities.
Intensive promotion across various media channels is needed to gain recognition among consumers.
Limited access to capital results in inefficient agricultural processing.
Assistance from the District and Provincial Governments is not evenly distributed among coffee farmers.
This capital assistance could include training in coffee processing methods, as many coffee farmers lack knowledge in this area.
Moreover, funding for machinery and production equipment is Although some farmers have processing skills, they lack supportive facilities and infrastructure.
Only a small fraction of farmers possess the ability to process coffee and own their machinery and equipment.
Comparison analysis of the total profits received in the processing businesses in Ciwidey and Puntang areas (Table .
Table 5.
Comparative Analysis of Total Profits of MS Coffee and Acs Siliwangi Comparative Analysis of Total Net Profits MS Coffee Acs Siliwangi Information Amount Information Amount Total Revenue/Month 6,000,000Total Revenue/Month 17,500,000 Cost of Goods 4,036,578Cost of Goods 13,280,972 Production/Month Production/Month Profit/Month 1,963,422Profit/Month 4,219,028 Profit/Pcs 19,634Profit/Pcs 21,095 Profit/Year 23,561,064Profit/Year 50,628,336 Source: Processed by researchers .
Therefore, in the comparison of total profits between the two areas above.
Puntang (Acs Siliwang.
has a larger profit, namely Rp21,095.
00/pcs, while Ciwidey (MS Coffe.
has a profit of Rp.
19,634/pcs.
These two areas have a difference in profit of Rp.
1,461.
In the Ciwidey area, the value added by MS Coffee is Rp.
44,647.
00 per kilogram, with a value-added ratio of 81.
This means that 81.
85% of the output value .
ackaged powdered coffee product.
represents the value added by the coffee processing industry.
Conversely, in the Puntang area, the value added by Acs Siliwangi is Rp.
55,025.
00 per kilogram, with a value-added ratio of 88.
This indicates that 04% of the output value .
ackaged powdered coffee produc.
is the value added from the processing industry.
Therefore, the value-added analysis for processing one kilogram of cherries into packaged powdered coffee products is Rp.
44,647.
00 per kilogram in Ciwidey (MS Coffe.
and Rp.
55,025.
00 per kilogram in Puntang (Acs Siliwang.
CONCLUSION
Based on the research findings on primary activities, both outbound logistics and marketing, sales, and service activities need enhancement to expand product marketing and increase sales.
Meanwhile, in supporting activities, technology development needs improvement because, over time, there will be a need for more modern machines with larger capacities.
The value chain in both processing industries involves two main actors:
farmers who act as cherry pickers to provide raw materials for production and act as Submitted: May 28, 2024.
Revised: July 28, 2024.
Accepted: July 30, 2024.
Published: August 20, 2024.
Website: http://journalfeb.
id/index.
php/almana/article/view/2566 Almana : Jurnal Manajemen dan Bisnis Volume 8.
No.
2/ August 2024, p.
ISSN 2579-4892 print/ ISSN 2655-8327 online DOI: 10.
36555/almana.
processors in the production process until it becomes finished products ready to be marketed, and business owners who also serve as distributors marketing the finished products until they reach consumers.
Moreover, intensive mentoring is needed for the development of coffee processing to proceed and have an impact on the community's economy, along with improvements in the marketing chain to ensure the availability of coffee commodities for processing and meet market demand.
REFERENCES