FACTORS AFFECTING CONSUMPTION OF POWDER COFFEE IN THE SOUTH KALIMANTAN PROVINCE OF INDONESIA

Abstract

Coffee commodities still have a very wide and open local market; domestic coffee consumption and foreign market demand are rising, but coffee production is steadily declining. Due to its potential for fertile soil, South Kalimantan Province is recognized as an agricultural region and a producer of a range of agricultural, horticultural, and plantation commodities. It can be argued that South Kalimantan residents consume more ground coffee on a weekly per capita basis every year. It is reported that South Kalimantan residents consumed 0.08 kg of ground coffee on average per week in 2018, 0.09 kg in 2019, 0.10 kg in 2020, and 0.12 kg in 2021. This study aims to examine: (a) ground coffee consumption patterns in South Kalimantan Province at different income levels; (b) community factors that affect ground coffee consumption; and (c) the price, income, and cross-elasticity of ground coffee products in South Kalimantan Province. Tobit's censored data multivariable regression was employed for the data analysis. The study's findings indicate that while the causes influencing ground coffee consumption in urban and rural areas are distinct, there are variances in consumption patterns between rural and urban groups at different income levels. Cross-income between rural and urban groups yields the same result for price elasticity.

Keywords

• consumer
• consumption
• ground coffee
• tobit censored data regression