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Global Sustainability Regulation and Coffee Supply Chains in Lampung Province, Indonesia

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  • Arifin, Bustanul

Abstract

This paper examines the global sustainability regulation in agricultural trade by conducting an in-depth assessment of the economics of coffee-producing regions in Lampung Province, Indonesia. A negative campaign blaming illegal coffee producers for the loss of tigers in the Bukit Barisan Selatan (BBS) National Park in the province further complicates the issue, as the current coffee supply chain could not guarantee the workability of price transparency and asymmetric structures of coffee markets, to name a few. In this region, community initiatives have been developed to foster forest conservation by adopting coffee multi-strata practices under the agroforestry system and community-based forestry management in the buffer zone outside the BBS National Park. Based on research findings, buyer-driven regulation of environmental practices in the coffee industry, which characterize most global initiatives, have somehow restructured the supply chain in producing regions. Recent global sustainability standards require adequate organizational capacity of coffee-farmer groups and rural cooperatives involved in the supply chain. The paper recommends policy integration between bottom-up initiatives at farm level or institutional changes at supply-chain organizations, and top-down sustainability standards set by the private sector and non-government organizations.

Suggested Citation

  • Arifin, Bustanul, 2010. "Global Sustainability Regulation and Coffee Supply Chains in Lampung Province, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 7(2), pages 1-23, December.
    • Handle: RePEc:ags:phajad:199090
    DOI: 10.22004/ag.econ.199090
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    References listed on IDEAS

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    1. Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September.
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    8. Arifin, Bustanul, 2006. "Transaction Cost Analysis of Upstream-Downstream Relations in Watershed Services: Lessons from Community-Based Forestry Management in Sumatra, Indonesia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25788, International Association of Agricultural Economists.
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    Cited by:

    1. Esther Sri Astuti & Astrid Offermans & René Kemp & Ron Cörvers, 2015. "The Impact of Coffee Certification on the Economic Performance of Indonesian Actors," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 12(2), pages 1-15, December.
    2. Glasbergen, Pieter, 2018. "Smallholders do not Eat Certificates," Ecological Economics, Elsevier, vol. 147(C), pages 243-252.
    3. Nia Rosiana & Rita Nurmalina & Ratna Winandi & Amzul Rifin, 2017. "Efficiency Analysis of Indonesian Coffee Supply Chain Network Using A New DEA Model Approach: Literature Review," Asian Social Science, Canadian Center of Science and Education, vol. 13(9), pages 158-158, September.
    4. Bitzer, Verena, 2012. "Partnering for Change in Chains: the Capacity of Partnerships to Promote Sustainable Change in Global Agrifood Chains," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(B), pages 1-25, December.

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