Investigating the Value Chain-Based Model of the KOMASTI Variety Agroindustry in Indonesia

This study examines the establishment of a model agroindustry for Komasti coffee in North Sumatra. It analyses its value chain to overcome inefficiency and improve farmers' welfare. The paper proposes a novel architecture for coordinating upstream and downstream operations in the coffee industry. We applied a mixed approach, using qualitative interviews, focus group discussions, a quantitative survey, and the Hayami method for value-added analysis. Her study recommends that the coffee agroindustry of Komasti has a high potential and needs to have a high value-added ratio, i.e., 47.34%, and a profit margin of 97.59%, showing very high profitability and operational efficiency. However, the proportion of the total added value received by farmers is still far below due to traditional, simple processing and poor market distribution. The model suggests strengthening farmers' cooperatives, based on IDT, and marketing the models through digitised platforms for market connection and supply chain efficiency. The novelty of this study is the holistic integration approach and multi-stakeholder co-operation that are likely to result in a 35% increase in income of the smallholder farmers and the expansion of export markets. These implications are particularly relevant to policymakers and agroindustry players promoting a competitive and sustainable coffee sector.