Main Article Content
Abstract
Purpose of Study: This study aims to analyze the level of visibility of low-scale ground coffee agro-industry and determine the role of the government in the development of low-scale ground coffee agro-industry.
Methodology: This research was conducted using a low-scale survey agro-industry method which was applied to a ground coffee centre in one of the provinces in Indonesia. The number of samples is seven low-scale coffee business units. Data analysis used is financial analysis (NPV, IRR, Net B/C ratio, and Payback Period), Break-Even Point analysis, and sensitivity analysis.
Results: The results showed that the low-scale ground coffee agro-industry was profitable and looked to be continued (IRR 99%, NPV 27,883,981.46 to 16,076,282,505.24 and Net B/C of 1.02 to 1.32), the sensitivity analysis showed that the cost of production to the scale of costs decreased, namely the decline in production below 20%.
Application: The creativity of producers in the marketing of processed coffee products and innovation of flavour variants is important for consumer attractiveness in maintaining the stability of agro-industry income.
Novelty: As for the role of the government, the seven production units have received guidance, counselling, and training.
Keywords
Article Details
Authors retain the copyright without restrictions for their published content in this journal. IJMIER is SHERPA ROMEO Journal.
Publishing License
This is an open-access article distributed under the terms of
References
- Abebe, G. (2020). Dealing with climate change and other stressors: small-scale coffee farmers in the Fero-two Peasant Association in the Wensho district, southern Ethiopia. GeoJournal, 1-16.
- https://doi.org/10.1007/s10708-020-10210-7
- Al-Abdulkader, A. M., Al-Namazi, A. A., AlTurki, T. A., Al-Khuraish, M. M., & Al-Dakhil, A. I. (2018). Optimizing coffee cultivation and its impact on economic growth and export earnings of the producing countries: The case of Saudi Arabia. Saudi Journal of Biological Sciences, 25(4), 776-782.
- https://doi.org/10.1016/j.sjbs.2017.08.016, PMid:29740243 PMCid:PMC5936977
- Azeez, S. A. (2017). Human resource management practices and employee retention: A review of literature. Journal of Economics, Management and Trade, 1-10. https://doi.org/10.9734/JEMT/2017/32997
- Brunerová, A., Haryanto, A., Hasanudin, U., Iryani, D. A., Telaumbanua, M., & Herák, D. (2019). Sustainable management of coffee fruit waste biomass in ecological farming systems at West Lampung, Indonesia. IOP Conference Series: Earth and Environmental Science, 345(1), 12007.
- https://doi.org/10.1088/1755-1315/345/1/012007
- Chen, C., Sun, Y., Lan, Q., & Jiang, F. (2020). Impacts of industrial agglomeration on pollution and ecological efficiency-A spatial econometric analysis based on a big panel dataset of China's 259 cities. Journal of Cleaner Production, 258, 120721. https://doi.org/10.1016/j.jclepro.2020.120721
- Chien, C.-F., Dou, R., & Fu, W. (2018). Strategic capacity planning for smart production: Decision modeling under demand uncertainty. Applied Soft Computing, 68, 900-909. https://doi.org/10.1016/j.asoc.2017.06.001
- Dai, H.-N., Wang, H., Xu, G., Wan, J., & Imran, M. (2020). Big data analytics for manufacturing internet of things: opportunities, challenges and enabling technologies. Enterprise Information Systems, 14(9-10), 1279-1303. https://doi.org/10.1080/17517575.2019.1633689
- Djamin, Z. (2013). Perencanaan dan Analisa Proyek. FE-UI.
- Fort, T. C., Pierce, J. R., & Schott, P. K. (2018). New perspectives on the decline of US manufacturing employment. Journal of Economic Perspectives, 32(2), 47-72. https://doi.org/10.1257/jep.32.2.47
- Fousekis, P., & Grigoriadis, V. (2017). Joint price dynamics of quality differentiated commodities: copula evidence from coffee varieties. European Review of Agricultural Economics, 44(2), 337-358.
- https://doi.org/10.1093/erae/jbw015
- Krishnan, S. (2017). Sustainable coffee production. In Oxford Research Encyclopedia of Environmental Science. https://doi.org/10.1093/acrefore/9780190846626.013.319
- https://doi.org/10.1093/acrefore/9780199389414.013.224
- Ma, N. L., Peng, W., Soon, C. F., Hassim, M. F. N., Misbah, S., Rahmat, Z., Yong, W. T. L., & Sonne, C. (2021). Covid-19 pandemic in the lens of food safety and security. Environmental Research, 193, 110405. https://doi.org/10.1016/j.envres.2020.110405, PMid:33130165 PMCid:PMC7598367
- Poudel, P. B., Poudel, M. R., Gautam, A., Phuyal, S., Tiwari, C. K., Bashyal, N., & Bashyal, S. (2020). COVID-19 and its global impact on food and agriculture. Journal of Biology and Today's World, 9(5), 221-225.
- Pound, B., & Conroy, C. (2017). The innovation systems approach to agricultural research and development. In Agricultural Systems (pp. 371-405). Elsevier. https://doi.org/10.1016/B978-0-12-802070-8.00011-6
- Purbasari, R., Wijaya, C., & Rahayu, N. (2019). Entrepreneurial ecosystem and regional competitive advantage: A case study on the creative economy of Indonesia. Advances in Social Sciences Research Journal, 6(6), 92-110. https://doi.org/10.14738/assrj.66.6652
- Rasul, G., Nepal, A. K., Hussain, A., Maharjan, A., Joshi, S., Lama, A., Gurung, P., Ahmad, F., Mishra, A., & Sharma, E. (2021). Socio-Economic Implications Of Covid-19 Pandemic In South Asia: Emerging Risks And Growing Challenges. Frontiers in Sociology, 6. https://doi.org/10.3389/fsoc.2021.629693, PMid:33869579 PMCid:PMC8022444
- Åšlusarczyk, B. (2018). Industry 4.0: Are we ready? Polish Journal of Management Studies, 17.
- https://doi.org/10.17512/pjms.2018.17.1.19
- Steel, R.G.D. and Torrie, J. . (1993). Principles and Procedures of Statistics (Student Ed). Mc. Grow-Hill Int.
References
Abebe, G. (2020). Dealing with climate change and other stressors: small-scale coffee farmers in the Fero-two Peasant Association in the Wensho district, southern Ethiopia. GeoJournal, 1-16.
https://doi.org/10.1007/s10708-020-10210-7
Al-Abdulkader, A. M., Al-Namazi, A. A., AlTurki, T. A., Al-Khuraish, M. M., & Al-Dakhil, A. I. (2018). Optimizing coffee cultivation and its impact on economic growth and export earnings of the producing countries: The case of Saudi Arabia. Saudi Journal of Biological Sciences, 25(4), 776-782.
https://doi.org/10.1016/j.sjbs.2017.08.016, PMid:29740243 PMCid:PMC5936977
Azeez, S. A. (2017). Human resource management practices and employee retention: A review of literature. Journal of Economics, Management and Trade, 1-10. https://doi.org/10.9734/JEMT/2017/32997
Brunerová, A., Haryanto, A., Hasanudin, U., Iryani, D. A., Telaumbanua, M., & Herák, D. (2019). Sustainable management of coffee fruit waste biomass in ecological farming systems at West Lampung, Indonesia. IOP Conference Series: Earth and Environmental Science, 345(1), 12007.
https://doi.org/10.1088/1755-1315/345/1/012007
Chen, C., Sun, Y., Lan, Q., & Jiang, F. (2020). Impacts of industrial agglomeration on pollution and ecological efficiency-A spatial econometric analysis based on a big panel dataset of China's 259 cities. Journal of Cleaner Production, 258, 120721. https://doi.org/10.1016/j.jclepro.2020.120721
Chien, C.-F., Dou, R., & Fu, W. (2018). Strategic capacity planning for smart production: Decision modeling under demand uncertainty. Applied Soft Computing, 68, 900-909. https://doi.org/10.1016/j.asoc.2017.06.001
Dai, H.-N., Wang, H., Xu, G., Wan, J., & Imran, M. (2020). Big data analytics for manufacturing internet of things: opportunities, challenges and enabling technologies. Enterprise Information Systems, 14(9-10), 1279-1303. https://doi.org/10.1080/17517575.2019.1633689
Djamin, Z. (2013). Perencanaan dan Analisa Proyek. FE-UI.
Fort, T. C., Pierce, J. R., & Schott, P. K. (2018). New perspectives on the decline of US manufacturing employment. Journal of Economic Perspectives, 32(2), 47-72. https://doi.org/10.1257/jep.32.2.47
Fousekis, P., & Grigoriadis, V. (2017). Joint price dynamics of quality differentiated commodities: copula evidence from coffee varieties. European Review of Agricultural Economics, 44(2), 337-358.
https://doi.org/10.1093/erae/jbw015
Krishnan, S. (2017). Sustainable coffee production. In Oxford Research Encyclopedia of Environmental Science. https://doi.org/10.1093/acrefore/9780190846626.013.319
https://doi.org/10.1093/acrefore/9780199389414.013.224
Ma, N. L., Peng, W., Soon, C. F., Hassim, M. F. N., Misbah, S., Rahmat, Z., Yong, W. T. L., & Sonne, C. (2021). Covid-19 pandemic in the lens of food safety and security. Environmental Research, 193, 110405. https://doi.org/10.1016/j.envres.2020.110405, PMid:33130165 PMCid:PMC7598367
Poudel, P. B., Poudel, M. R., Gautam, A., Phuyal, S., Tiwari, C. K., Bashyal, N., & Bashyal, S. (2020). COVID-19 and its global impact on food and agriculture. Journal of Biology and Today's World, 9(5), 221-225.
Pound, B., & Conroy, C. (2017). The innovation systems approach to agricultural research and development. In Agricultural Systems (pp. 371-405). Elsevier. https://doi.org/10.1016/B978-0-12-802070-8.00011-6
Purbasari, R., Wijaya, C., & Rahayu, N. (2019). Entrepreneurial ecosystem and regional competitive advantage: A case study on the creative economy of Indonesia. Advances in Social Sciences Research Journal, 6(6), 92-110. https://doi.org/10.14738/assrj.66.6652
Rasul, G., Nepal, A. K., Hussain, A., Maharjan, A., Joshi, S., Lama, A., Gurung, P., Ahmad, F., Mishra, A., & Sharma, E. (2021). Socio-Economic Implications Of Covid-19 Pandemic In South Asia: Emerging Risks And Growing Challenges. Frontiers in Sociology, 6. https://doi.org/10.3389/fsoc.2021.629693, PMid:33869579 PMCid:PMC8022444
Åšlusarczyk, B. (2018). Industry 4.0: Are we ready? Polish Journal of Management Studies, 17.
https://doi.org/10.17512/pjms.2018.17.1.19
Steel, R.G.D. and Torrie, J. . (1993). Principles and Procedures of Statistics (Student Ed). Mc. Grow-Hill Int.