Indonesia is one of the world's leading coffee-producing countries, and Arabica coffee has become an increasingly valuable commodity due to its premium flavor, aroma, and growing demand in specialty coffee markets. While many farmers still sell coffee as raw beans, the expansion of coffee agroindustry has encouraged producers to process coffee into finished consumer products that command significantly higher market prices.
The Solok Radjo Cooperative in Solok Regency, West Sumatra, represents one of the successful examples of this transition. Known for producing high-quality Arabica coffee with distinctive sensory characteristics, the cooperative has integrated cultivation, post-harvest handling, processing, and marketing into a single value chain. The new study highlights how this integrated approach contributes to higher profitability and sustainable rural economic development.
The research was conducted in June 2025 using a descriptive quantitative approach. Researchers collected primary data through interviews with cooperative leaders and employees, while secondary information was obtained from relevant literature and supporting documents. To measure the economic benefits generated during processing, the research applied the Hayami value-added analysis, a widely used method for evaluating how agricultural products gain additional economic value through processing.
The study documented every major stage of Arabica coffee production, beginning with cultivation and continuing through processing into ready-to-consume coffee powder.
The cultivation system implemented by the Solok Radjo Cooperative includes:
- Selection of high-quality Arabica seed varieties.
- Proper land preparation and soil management.
- Organic and chemical fertilization.
- Manual and biological pest and disease control.
- Selective harvesting of fully ripe red coffee cherries.
- Careful post-harvest handling to maintain bean quality.
After harvesting, the coffee undergoes a series of post-harvest operations before becoming green beans. These include water sorting to separate high-quality cherries, controlled drying inside plastic dome drying houses for approximately 30–45 days, and mechanical hulling once the moisture content reaches around 10–12%.
The transformation into ground coffee then follows several standardized processing steps:
- Manual sorting of green coffee beans.
- Roasting at 180–200°C for 10–15 minutes.
- Cooling for approximately 5–7 minutes.
- Grinding into medium-sized coffee powder.
- Packaging into drip bags, sachets, and retail boxes.
During each production cycle, the cooperative processes 10 kilograms of Arabica coffee beans, producing approximately 8.7 kilograms of ground coffee, equivalent to about 174 retail boxes weighing 50 grams each.
The economic analysis revealed that downstream processing creates substantial financial value.
Key findings include:
- Added value: IDR 734,583.33 per kilogram of coffee beans processed.
- Added value ratio: 64.95%.
- Profit: IDR 714,583.33 per kilogram.
- Profit rate: 63.18%.
- Output value: Approximately IDR 1,131,000 per kilogram of processed raw material.
The researchers also found that each kilogram of coffee beans generated a processing margin of IDR 1,001,000. Approximately 71.39% of that margin became company profit, 26.61% covered supporting production inputs, and 1.99% represented direct labor income.
These figures indicate that most of the economic gains are generated during roasting, grinding, packaging, branding, and product marketing rather than from selling green coffee beans alone.
According to Herda Gusvita and colleagues from Universitas Ekasakti, the results confirm that value-added processing significantly improves the commercial value of Arabica coffee. By combining careful cultivation practices with standardized post-harvest handling, quality-oriented roasting, and attractive packaging, cooperatives can transform agricultural commodities into premium consumer products with much higher market value.
The study also reinforces previous international research showing that cooperatives play a critical role in improving product quality, expanding market access, and strengthening farmers' bargaining power. Solok Radjo Cooperative demonstrates that integrating production, processing, and marketing within one organization allows more value to remain within local communities instead of being captured elsewhere along the supply chain.
The implications extend beyond a single cooperative. For coffee farmers, the findings suggest that participating in value-added processing can substantially increase income compared with selling raw coffee beans. For agribusinesses, the research highlights the importance of investing in roasting technology, product differentiation, packaging innovation, and branding.
Policymakers may also use these findings to strengthen Indonesia's coffee development strategy by supporting cooperative-based agroindustry, expanding processing infrastructure, improving farmer training, and encouraging product diversification. Such initiatives could increase the competitiveness of Indonesian specialty coffee in both domestic and international markets.
As global demand for premium coffee continues to grow, research such as this provides practical evidence that downstream processing offers one of the most effective pathways for increasing rural incomes while promoting sustainable agricultural development.
Author Profile
Herda Gusvita, S.P., M.P. is a lecturer and researcher in the Agribusiness Study Program, Faculty of Agriculture, Universitas Ekasakti, Padang. Her research focuses on agribusiness development, agricultural economics, value-added analysis, and agroindustrial systems. This study was conducted in collaboration with Esa Diya Wahyuni, Zenta Afriyanto, and Gusriati, who are also affiliated with the Faculty of Agriculture at Universitas Ekasakti and contribute to research on agricultural value chains, coffee agribusiness, and rural economic development.
Source
Article Title: Analysis of The Added Value of Arabica Coffee Beans into Coffee Powder at Solok Radjo Cooperative
Authors: Herda Gusvita, Esa Diya Wahyuni, Zenta Afriyanto, Gusriati
Journal: Formosa Journal of Science and Technology (FJST)
Publication Year: 2026
DOI: https://doi.org/10.55927/fjst.v5i6.99
Official Journal: https://journalfjst.my.id/index.php/fjst
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