IDEAS home Printed from https://ideas.repec.org/a/ags/phajad/258966.html

Panca Datu Partnership in Support of Inclusive Business for Coffee Development: The Case of Ngada District, Province of Nusa Tenggara Timur, Indonesia

Author

Listed:
  • Sedana,Gede
  • Astawa, Nengah Dasi

Abstract

Coffee development has big potential as coffee is one of the globally traded commodities in the world. Arabica and Robusta are the most popular coffee varieties produced by smallholder farmers in Indonesia, including those in Flores Island, Nusa Tenggara Timur Province. The produce of this island is well known in the global market as Flores coffee. Coffee farmers have poor knowledge and skills in farm management, which, along with poor postharvest practices, had contributed to low productivity and low quality of coffee beans. A project (AIP-PRISMA) has been implemented in Ngada District in Flores Island with the goal of increasing productivity and developing goodquality coffee. This study aims to describe the model business implemented in coffee development and the roles of actors involved in the business model. Ngada District was purposively selected as study site because a coffee development center exists in the island. Data were collected using focus group discussion (FGD) and documentation techniques. In this study, data collected is fully analyzed using descriptive method. The results of study pointed out that there are five main value chain actors involved in the market system. The first three are the coffee farmers’ cooperative, PT. Indokom Citra Persada (coffee exporter), and the Bank of Nusa Tenggara Timur (a local government bank). Also, there are two supporting value chain actors, namely the Indonesian Coffee and Cocoa Research Institute (ICCRI, a research institution), and VECO-Indonesia (an international non-government organization or NGO). Inclusive business among the actors was based on a business model. There is a strong partnership among the five actors locally called panca datu (panca is five, and datu is element). Sustainability of inclusive business is happening because each actor plays the roles and generates an economic incentive for each.

Suggested Citation

  • Sedana,Gede & Astawa, Nengah Dasi, . "Panca Datu Partnership in Support of Inclusive Business for Coffee Development: The Case of Ngada District, Province of Nusa Tenggara Timur, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 13(2).
    • Handle: RePEc:ags:phajad:258966
    DOI: 10.22004/ag.econ.258966
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/258966/files/AJAD_Panca%20Datu%20for%20Coffee%20Development_Indonesia.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.258966?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ortmann, Gerald F. & King, Robert P., 2006. "Small-Scale Farmers in South Africa: Can Agricultural Cooperatives Facilitate Access to Input and Product Markets?," Staff Papers 13930, University of Minnesota, Department of Applied Economics.
    2. Markelova, Helen & Meinzen-Dick, Ruth & Hellin, Jon & Dohrn, Stephan, 2009. "Collective action for smallholder market access," Food Policy, Elsevier, vol. 34(1), pages 1-7, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Boris Kaido & Nina Takashino & Katsuhito Fuyuki, 2021. "Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 11(1), pages 53-62, March.
    2. Kaidoa, Boris & Takashino, Nina & Fuyuki, Katsuhito, 2021. "Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 11(01), January.
    3. Gede Sedana & Nengah Dasi Astawa, 2019. "Establishment of inclusive business on coffee production in Bali province: lesson from the coffee development project in Nusa Tenggara Timur province, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(1), pages 111-122, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Banaszak, Ilona & Beckmann, Volker, 2010. "Compliance with Rules and Sanctions in Producer Groups in Poland," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 38(01), pages 1-15.
    2. Crespo, Joan & Réquier-Desjardins, Denis & Vicente, Jérôme, 2014. "Why can collective action fail in Local Agri-food Systems? A social network analysis of cheese producers in Aculco, Mexico," Food Policy, Elsevier, vol. 46(C), pages 165-177.
    3. Shreya Anand & Souvik Ghosh & Anirban Mukherjee & Arijit Roy, 2026. "How sustainable are the farmer producer companies (FPCs) in India?—Unravelling the determinants of farmers’ perceptions through multivariate analyses," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 97(2), pages 369-399, June.
    4. Stefano Ciliberti & Angelo Frascarelli & Gaetano Martino, 2020. "Drivers of participation in collective arrangements in the agri‐food supply chain. Evidence from Italy using a transaction costs economics perspective," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(3), pages 387-409, September.
    5. Gersch Inka, 2018. "Producer organizations and contract farming: a comparative study of smallholders’ market strategies in South India," ZFW – Advances in Economic Geography, De Gruyter, vol. 62(1), pages 14-29, March.
    6. Wanjala, Bernadette, 2016. "Can the big push approach end rural poverty in Africa? : Insights from Sauri millennium village in Kenya," Other publications TiSEM 5a686b22-6749-4e9e-8bf4-4, Tilburg University, School of Economics and Management.
    7. Dinesh Dhakal & David O’Brien & Peter Mueser, 2021. "Government Policy and Performance of Agricultural Cooperatives: A Case Study in Chitwan District, Nepal," Sustainability, MDPI, vol. 13(21), pages 1-20, November.
    8. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi & Demont, Matty, 2021. "The spillover effect of direct competition between marketing cooperatives and private intermediaries: Evidence from the Thai rice value chain," Food Policy, Elsevier, vol. 101(C).
    9. Balie, Jean & Strutt, Anna & Nelgen, Signe & Narayanan, 2018. "Infrastructure investments for improved market access in subSaharan Africa: A CGE analysis," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
    10. Allison Benson & Jean-Paul Faguet & Maria del pilar LÔøΩpez Uribe, 2020. "Increasing Access to Agricultural Credit: The Heterogeneous Effects of Collective Action," Documentos CEDE 18347, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Hao, Jinghui & Heerink, Nico & Heijman, Wim & Bijman, Jos, "undated". "Cooperatives Membership And Smallholder Farmers’ Welfare - Evidence From Shaanxi And Shandong Provinces, China," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 260914, European Association of Agricultural Economists.
    12. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    13. James Wangu & Ellen Mangnus & A. C. M. (Guus) van Westen, 2021. "Recognizing Determinants to Smallholders’ Market Orientation and Marketing Arrangements: Building on a Case of Dairy Farming in Rural Kenya," Land, MDPI, vol. 10(6), pages 1-16, May.
    14. Ellen Verhofstadt & Miet Maertens, 2014. "Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 39-52, November.
    15. Wenielyn G. Nilo & Maryjoy S. Bacus & Anecil S. Quijano-Pangutayao & James Karlo S. Maiso & Dexter Neil B. Guden, 2026. "Organizational Development Capacity of Coconut Farmer Cooperatives in Camarines Sur, Philippines: A Multidimensional Assessment," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 10(4), pages 7476-7490, April.
    16. Federica Di Marcantonio & Enkelejda Havari & Liesbeth Colen & Pavel Ciaian, 2022. "Do producer organizations improve trading practices and negotiation power for dairy farms? Evidence from selected EU countries," Agricultural Economics, International Association of Agricultural Economists, vol. 53(S1), pages 121-137, November.
    17. Bagchi, Niladri Sekhar & Mishra, Pulak & Behera, Bhagirath, 2021. "Value chain development for linking land-constrained farmers to markets: Experience from two selected villages of West Bengal, India," Land Use Policy, Elsevier, vol. 104(C).
    18. Mercy Mwambi & Jos Bijman & Patience Mshenga, 2020. "Which type of producer organization is (more) inclusive? Dynamics of farmers’ membership and participation in the decision‐making process," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 213-236, June.
    19. Baoubadi, Atozou & d’Errico, Marco & Ulimwengu, John, 2024. "Building Resilience through Integrated Assistance: Evidence from the Democratic Republic of the Congo," African Journal of Economic Review, African Journal of Economic Review, vol. 12(4).
    20. Arouna Dissa & Jos Bijman & Maja Slingerland & Ousmane Mama Sanogo & Ken E Giller & Katrien Descheemaeker, 2022. "Growing cotton to produce food: Unravelling interactions between value chains in southern Mali," Development Policy Review, Overseas Development Institute, vol. 40(5), September.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:phajad:258966. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/searcph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.