Challenges of Arabica Coffee Marketing: A Case Study in Kerinci Regency, Indonesia

Indonesia has several Arabica coffee varieties that are well known in the domestic and world markets. However, marketing challenges exist for the domestic market and few cooperatives are able to export. Arabica Coffee Kerinci, a cooperative that exports, is an exception; nevertheless, marketing challenges persist for this cooperative too. Our objectives are to examine a case study of a successful cooperative that focuses on the export market and to clarify the challenges remaining for Arabica coffee marketing. Descriptive statistics were employed to capture the complexities of these marketing challenges. Semi-structured interviews using simple random sampling were conducted with the cooperative’s leader and with 51 farmers. We find that the fundamental challenges are quality inconsistency, price fluctuations, lengthy and bureaucratic export administration, absence of bank loans, and lack of government support. We recommend the following key steps: (1) focusing on improvements in producing and maintaining superior quality that meets export standards and provides capital stimulus; and (2) through greater government and industry synergy, encouraging governments to provide support to farmers and cooperatives alike. Further, other Indonesian regions could adopt Arabica coffee for rural development. This study contributes by formulating a better understanding of the major challenges facing producers of agricultural commodities.