agung rahmat kurniansyah
IPMI International Business School
Amelia Naim Indrajaya
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As the number four coffee producers in the world, Indonesia has been supplying the worlds demand for coffee, with plantations spreading from Aceh to Papua. Each type of coffee has their own characteristics - both from bean shape, size, aroma and taste. The vast array of variety in each type, combined with diverse location and height of the plantation also yielded a wide diverse of tastes. Each region has different geographic characteristics, with different soil conditions, temperature and water quality. This created unique taste as each coffee has its own flavor note. Unfortunately, not many people know about this uniqueness.
One institution that strives to develop appreciation to Indonesian coffee is SCAI (Specialty Coffee Association of Indonesia). They have done efforts to improve the coffee quality, from the cultivation, post-harvest processing, to how to make a good cup of coffee. As one of the member of the SCAI, NoozKav Coffee has aimed to prove through its innovative business model and simple research and development program. Innovative in the sense of taking the role as a bridge between farmers and processors with the consumers.
The first step is how to get good products. This was done by educating the farmers on selection of the seeds, proper cultivation and harvest method. Processors will be guide to do best practices in order to get best quality raw material.
The second step is to communicate the feedback received from consumers to farmers and processors. Feedback on quality will be used as base for improvement while demand data will be used to determine the types of coffee that will be produced.
The combination does not only deliver good quality coffee to its consumers and preserve the variety of the Indonesian Coffee, but also improve farmers' welfare and empower conventional farmers to practice improvement and sustainable coffee farming technique.
NoozKav coffee then collaborates with CV Green Health Agriculture to further accelerate the initiative. The partnership mostly expand the downstream capacity of the business. With the experience on the on-farm (good agricultural practices and organic fertilizer) combined with wider network of marketing, the new partner ensures that better products and faster response to market demand can be met.
Based on interview with Rizky Ardhi Nugroho, the founder of CV Green Health Agriculture's, they want to apply a good quality control in the process of cultivation, crop handling and post-harvest process to improve the quality in accordance with the market demand. The farmers will be assisted to upgrade their product with efficient cost.
Currently, coffee farmers have no incentive to produce high quality coffee beans. Lack of knowledge and low price due to long supply chain are the culprits. In supply chain, coffee goes through long steps to reach its customers. From farmers, it is collected by village traders and then goes to regency traders then to province collectors or big traders. Big traders may sell the coffee to branded coffee manufacturers or export it. Since the relationship between the traders and the farmers mostly are based on business, traders tend to buy the coffee at the lowest price possible from the farmers to maximize their gain from their next chain. This whole system results in high price of coffee for the customer.
Sometimes the farmers just produce what they can produce, which is not always suitable for the market demand. This also created “waste” and loss for the farmers.
By being involved in the whole supply chain process, the collaboration among NoozKav and Green Health Agriculter ensures efficiency and fast and correct response to the market demand. Further enhancement for serving the costumer is the capability to do tailor-made roasting. Different market demands different type of coffee flavor. Some customer like dark coffee, some can stand high acidity. Close interaction with the customer means faster response to meet any request of specific taste.
From the beginning, coffee was considered only as a commodity. By being treated as commodity, the effort mostly goes to produce more to lower the price and sell in high quantity.
The initiative aims to create appreciation on Indonesian coffee. It has flavors so unique that have been neglected by poor processing and serving method. Education can change this.
By producing high quality coffee but affordable price due to shorter supply chain, more people can enjoy good coffee. The current trend of drinking coffee as a life style have created a high image of coffee. Though it creates a 'high image' on coffee and provides very good margin for those in the distribution chain, farmers and customers (those at the beginning and the end of the supply chain) do not benefit much from this model.
CV. Green Health Agriculture proves to its coffee stakeholders, that they can serve the best coffee for all coffee lovers. By doing the right coffee processing method, not only the farmers and the end-customers get benefit out of it, but also the land and the coffee plants are all benefited.
With its business model, CV. Green Health Agriculture have maximized the profit of coffee business. Its' continuous research and development program results in better farming techniques that subsequently resulted in improved productivity, efficient post harvest process and superb end products manufacturing techniques.
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CV. Green Health Agriculture has a commitment to produce and distribute high quality food products that are affordable for every segment. Since its humble beginning, they have continuously done research and development on coffee farming to deliver more values not only to its customers but also to all of its stakeholders. Noozkav, its coffee brand, currently is ready to be ordered in Jabodetabek areas, across Java, Bali, and Sumatera islands, and also accept orders from abroad.
