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Letefoho Arabica coffee in Timor-Leste has strong potential to expand into national and international markets, but better business management and marketing are needed to unlock that opportunity. The finding comes from Julmarcia Gioia Da Costa Belo, Rahmawati Setiyani, and Bimoseno Sepfrian of Universitas Duta Bangsa Surakarta, whose research analyzes the business model of Letefoho Arabica coffee using the Business Model Canvas. The article was accepted on August 26, 2026, and published in Jurnal Multidisiplin Madani (MUDIMA), Volume 6, Number 8, in August 2026.
The research highlights an important opportunity for Timor-Leste’s agricultural economy. Coffee is the country’s leading non-oil and gas export commodity and contributes significantly to rural household incomes and foreign exchange earnings. About 25 percent of farming households in Timor-Leste depend on the coffee sector for income. Ermera District is the country’s largest coffee-producing center, with coffee plantations covering 31,616 hectares, equivalent to approximately 38 percent of total national coffee production.
Letefoho is one of the areas in Ermera known for producing high-quality Arabica coffee. Its mountainous environment, with plantations located at elevations of around 1,400 to 1,900 meters above sea level, supports coffee production. The region commonly grows Arabica Typica and Hybrido de Timor (HDT), while traditional agroforestry and organic cultivation practices are widely used. The coffee is associated with distinctive aroma, floral and chocolate flavor notes, and balanced acidity.
High Quality Meets Business Challenges
Despite these advantages, Letefoho Arabica coffee has not yet fully converted its product quality into broader economic opportunities. One major challenge is the long marketing chain. Farmers remain dependent on middlemen and large exporters, which can reduce their profits. Conventional marketing practices also limit direct access to wider domestic and international consumers.
Belo, Setiyani, and Sepfrian examined the coffee business through nine components of the Business Model Canvas: customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. This framework provides a straightforward way to see how the coffee business creates value, reaches customers, generates income, uses resources, and manages costs.
The researchers collected primary and secondary information in Letefoho through interviews, recall, and documentation. The main informant was the Chair of the Arabica Coffee Farmers’ Group in Letefoho, selected because of direct knowledge and involvement in the local coffee agribusiness.
Five Key Business Findings
The analysis identifies several strengths and weaknesses in the existing Letefoho Arabica coffee business.
1. The current market is concentrated among higher-income consumers.
The relatively high price of Timor-Leste Arabica coffee means that the main customers are currently from middle- and upper-income groups. The researchers recommend offering different package sizes to make the product more affordable and reach lower-middle-income consumers.
2. Organic production is a major selling point.
Letefoho Arabica coffee is produced using organic ingredients without chemical preservatives. The production process emphasizes cleanliness, product quality, sustainability, and the use of locally available resources. The farmers’ group also highlights the use of locally grown Arabica coffee from Letefoho as an important part of its product value.
3. Marketing remains largely traditional.
Most coffee is distributed through middlemen, while only a smaller portion is sold directly to local markets and consumers. The study notes that information technology has not yet been fully integrated into marketing activities.
4. Revenue remains unpredictable.
Letefoho Arabica coffee is sold in 250-gram, 500-gram, and 1-kilogram packages. The prices reported in the study are US$4.50 for 250 grams, US$8 for 500 grams, and US$13 for 1 kilogram when sold to collectors. However, revenue fluctuates because the number of consumers purchasing the product varies.
5. Production resources and partnerships provide a strong foundation.
The business has access to coffee cherries, seedlings, water, organic fertilizer, packaging materials, agricultural equipment, processing machinery, and human resources. Its activities cover cultivation, selective harvesting, post-harvest processing, drying, sorting, roasting, grinding, packaging, marketing, and distribution.
Digital Technology Could Open Wider Markets
One of the clearest recommendations from the Universitas Duta Bangsa Surakarta researchers is to increase the use of digital technology and e-commerce.
Digital marketing could allow Letefoho Arabica coffee to move beyond traditional distribution channels and reach consumers directly. The study states that e-commerce can help expand market reach, increase product value, and strengthen the competitiveness of Timor-Leste coffee in international markets.
This approach could also help reduce excessive dependence on traditional intermediaries. By building direct relationships with consumers and developing stronger digital sales channels, coffee producers may gain better opportunities to communicate product quality, promote the Letefoho origin, and understand changing consumer demand.
The researchers also emphasize the importance of partnerships. Farmers, farmer groups, cooperatives, collectors, processors, and exporters already form part of the Letefoho coffee value chain. Stronger cooperation can provide farmers with market information, improve product quality, and create better marketing opportunities. Government agencies, financial institutions, and research organizations can also contribute through capacity building and improved access to capital.
From Local Commodity to Competitive Product
The findings suggest that the future competitiveness of Letefoho Arabica coffee will depend not only on the quality of its beans but also on how effectively the product is managed as a business.
Julmarcia Gioia Da Costa Belo and colleagues from Universitas Duta Bangsa Surakarta emphasize a development strategy built around more accessible packaging, digital marketing, stronger cooperative and exporter partnerships, efficient cost management, and consistent product quality. These measures are expected to expand the market, increase revenue, and strengthen Letefoho Arabica coffee’s position in national and international markets.
An ethical paraphrase of the researchers’ central finding is that Letefoho already possesses important business assets—high-quality organic coffee, adequate production resources, customer relationships, and supportive partnerships—but these strengths need to be connected to more effective marketing and market expansion.
For farmers and local businesses, the implications are practical. Smaller and differentiated packaging could make the product accessible to more consumers. Digital commerce could provide new routes to market. Stronger relationships with cooperatives and exporters could improve distribution, while careful cost management could help preserve profitability without sacrificing quality.
For policymakers, the findings point to the value of supporting farmer capacity, financing, digital business skills, market access, and sustainable partnerships. For the coffee industry, Letefoho demonstrates how a distinctive agricultural product can require both production excellence and a modern business strategy to compete beyond its local market.
Author Profiles
Julmarcia Gioia Da Costa Belo — Universitas Duta Bangsa Surakarta. Corresponding author of the article and researcher on the development of the Letefoho Arabica coffee business model.
Rahmawati Setiyani — Universitas Duta Bangsa Surakarta. Co-author of the research examining the Business Model Canvas and development opportunities for Timor-Leste Arabica coffee.
Bimoseno Sepfrian — Universitas Duta Bangsa Surakarta. Co-author of the research on the business development strategy for Letefoho Arabica coffee.
The source article does not state the authors’ academic degrees or specific individual fields of expertise. Those details are therefore not added here to preserve factual accuracy.
Research Source
Article title: Analysis of the Business Model Canvas for the Development of Timor-Leste Arabica Coffee
Authors: Julmarcia Gioia Da Costa Belo, Rahmawati Setiyani, Bimoseno Sepfrian
Affiliation: Universitas Duta Bangsa Surakarta
Journal: Jurnal Multidisiplin Madani (MUDIMA)
Publication: Volume 6, Number 8, August 2026
Pages: 1161–1165
DOI: https://doi.org/10.55927/mudima.v6i8.120
Official journal website: https://journalmudima.my.id/index.php/mudima
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