Sustainable Coffee Chain Strategy for Local Small-Scale Roaster: A Case Study of Narakopi

• Main Author: Nurul Fuadah, Mediane
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28826
• Institution: Institut Teknologi Bandung

Narakopi is a social-based small business start-up with the main business in roasting and distributing <br /> <br /> coffee beans both for business and individual needs. To achieve its missions, Narakopi aspired to <br /> <br /> perform sustainable coffee chain. Nevertheless, there are not much guidelines or researches about it <br /> <br /> strategy that can be implemented for local small-scale roasters. Within the context of a sustainable value <br /> <br /> chain management, the purpose of this study is to implement the appropriate strategy that possibly <br /> <br /> undertaken by Narakopi as local small-scale roaster with smallholder coffee farmers in Dewata Village, <br /> <br /> South Sulawesi. <br /> <br /> The value chain management strategy in coffee industry is also known as sustainable coffee chain. It <br /> <br /> encompasses social and environmental dimension aside of economy goals. A firm could get benefits by <br /> <br /> applying sustainable coffee chain strategy such as competitive advantage derived from higher rating of <br /> <br /> environmental, ethical, profitability, stakeholders’ satisfaction, imitation difficulty, more efficient cost, <br /> <br /> higher adaptability, and more positive image that is supported by growing sustainable market. However, <br /> <br /> sustainable coffee chain strategy is only carried out by foreign institutions especially major coffee <br /> <br /> companies. Qualitative research method was performed to explore and analyze the data. Field work and <br /> <br /> data collection were done in June-September 2016. In current circumstances, the main challenge for <br /> <br /> Narakopi as a small scale roaster in applying sustainable coffee chain strategy is the absence of <br /> <br /> comprehensive implementation plan to do so. <br /> <br /> The biggest problem found in smallholder coffee farming in Dewata Village was economic problem <br /> <br /> that mostly had implications to other dimensions. Therefore, by focusing on the economic dimension, it <br /> <br /> could impact all other dimensions. The feasible solutions as sustainable coffee chain strategy could be <br /> <br /> classified into five categories: network assistance, direct partnership, better pricing, capacity building, <br /> <br /> and value promotion. <br /> <br /> In creating implementation plan, each category was broken down into key activities. Resources required <br /> <br /> from each activity were recorded for budget estimation. Total fund needed to implement sustainable <br /> <br /> coffee chain strategy was estimated at Rp30,440,000. The estimated time schedule was also calculated, <br /> <br /> it would take approximately 8 weeks to implement sustainable coffee chain strategy for Narakopi. <br /> <br /> Being a single case study, some caution needs to be applied to generalize findings beyond the specific <br /> <br /> context studied. The study has implications for local small-scale business owners in creating <br /> <br /> implementation plan for sustainable coffee chain strategy. It also highlights the potential of local smallscale <br /> <br /> roaster to solve sustainability problems in rural areas while increasing competitive advantages for <br /> <br /> the future organizations.