Coffee has become one of the important commodities traded on the world market. The end of the quota system that was put in place in international coffee agreements (International Coffee Agreements, ICAs) has caused significant changes in various countries of the world coffee producers. At present, Indonesia is the fourth largest coffee producer in the world, after Brazil, Vietnam and Colombia. Before the 2000s, Colombia and Indonesia respectively were the second and third coffee producers in the world. However, Vietnam has managed to significantly increase coffee production since the late 1990s. These conditions make Vietnam the second largest coffee producing country in the world, after Brazil.
Indonesia is an agricultural country with a large portion of the population and the country's income depends on agricultural commodities, including plantations and livestock. In the plantation sector, various commodities are the backbone of the government in running its economy.
Robusta and Arabica coffee are the types of coffee that are mostly cultivated by farmers and planters
In trading, the coffee market is divided into two types of markets, namely the commercial coffee market and the specialty coffee market. Although the coffee market is classified into two different markets, the quality of coffee is an important aspect that needs to be considered by market participants in the marketing of coffee. Quality criteria inherent in coffee commodities can provide benefits to market participants, because they get better prices and are relatively high.
According to AEKI, the value of exported Arabica coffee reaches around 30% of the value of all coffee exported by Indonesia. As mentioned earlier, coffee is cultivated in almost all regions in Indonesia. In fact, some areas are known as specialty coffee producing areas that are known to have high quality due to the specificity of flavor, including Gayo Coffee (Aceh), Mandheling (North Sumatra), Ijen Raung (East Java), Kintamani (Bali), Toraja (South Sulawesi) , Arabica Flores Bajawa (Flores, East Nusa Tenggara) and Wamena (Papua). In the world market, the price of specialty coffee is generally higher than the price of coffee at the New York terminal. As an illustration, the price of coffee beans in Gayo in early July reached at least Rp. 60,000 at the farm level, while prices in the New York terminal were only around Rp. 35,000. Thus, farmers have a greater chance to be able to increase their income by producing quality coffee.
The prospect of coffee trading can be seen from the high prices given by consumers, the opening of market opportunities both domestically and internationally, the high demand for consumer demand, and various variations in product diversification. World coffee consumption, including Indonesia, continues to increase from year to year. The increase in world population, economic improvement and the level of community welfare play a role in increasing consumption of coffee and its processed products.
The United States is the country with the highest coffee consumption in the world. In general, the biggest coffee consumption is consumer countries that are included in the traditional market domain such as the United States, European Union countries, Japan and so on. But now, coffee consumption in coffee exporters / producers (such as Brazil, Indonesia, etc.) is also experiencing growth. In fact, coffee consumption in emerging market countries such as South Korea, Eastern Europe, China, Hong Kong, Australia and other countries is also growing.
Increased coffee consumption also occurs in Indonesia, which is influenced by lifestyle changes. Today, coffee is no longer a hobby for the elderly, but is also preferred by young people. In fact, coffee connoisseurs also come from diverse social classes, ranging from the ordinary to the executive. Coffee is also more than just a drink, because coffee can be a medium for connecting and communicating and exchanging ideas among the audience. At present, the coffee beverage business is experiencing rapid growth. This is marked by the number of modern coffee shops both locally and internationally that color the coffee industry sector in Indonesia. The presence of these stalls is not only in urban areas, but has begun to be found in many areas, especially the main coffee producing areas. The coffee shops offer a variety of quality coffee products and various forms of presentation. On the other hand, ready-to-drink coffee drinks with a variety of flavors are also increasingly being marketed by large companies engaged in the food and beverage business. Of course, each of these companies has specific target market segments and target markets. The production of various flavors is generally adjusted to the preferences and needs of consumers. To increase market share, business people need to pay attention to which market segments are entered and who are the target markets being targeted. Several aspects that can be used to explore the economic value of coffee, namely geographical, demographic, psychographic and behavioral aspects. These aspects are the mapping / classification variables in market segmentation. Thus, coffee's economic potential can be explored through the creation of business opportunities by utilizing behavioral changes and the development of a culture of drinking coffee among the people.
The increase in coffee consumption both in the world and in Indonesia itself is an opportunity that must be utilized by coffee farmers and all coffee stakeholders in Indonesia. The availability of land, farmers' knowledge about cultivation, and the availability of labor makes Indonesia
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