A STUDY OF ARGOPURO SPECIALTY COFFEE DISTRIBUTION CHANNEL

Abstract

Specialty coffee is one form of coffee products that has developed into a niche market in the last five years in Indonesia. The development of the specialty coffee market starts from the many coffee shops that have sprung up in urban areas. This study focuses on the efficiency analysis of the Argopuro specialty coffee distribution channel. Argopuro as a single origin and new producer of specialty coffee requires a study of distribution channels that have been running in the past three years in order to develop efficient channels. Research location is located in Tlogosari Village, Sumbermalang Sub-district, Situbondo Regency. The sampling method is taken by non-probabling sampling by focusing on actors in each distribution channel. The sample consisted of 20 assisted farmers, 1 processor and 7 home roasters. The results of the study showed that the farmer share obtained by farmers in the Argopuro specialty coffee business is 36%. While the marketing strategy of each distribution chain actor includes; farmers (48%), processors (53%), and roastery (48%). Percentage of profit and cost ratio is obtained evenly between market institutions. Prossesor has a profit ratio of 83% and costs 73%. While roastery has a profit ratio of 73% and a cost ratio of 80%. Based on these indicators, the Argopuro specialty coffee distribution channel is efficient in terms of margin share, profit share and cost share. However, the purchase price at the farmer level needs to be considered so that the portion of the farmer share can be increased.

Keywords

• Specialty coffee
• efficiency
• distribution channel
• farmer share