Profitability Analysis of Coffee Farming in Order to Reduce Poverty In Wonogiri Regency

The plantation sector is vital to Indonesia's economic development, with coffee being a key commodity that contributes 7% to global production. Wonogiri Regency possesses significant potential for coffee cultivation, supported by favorable geographical conditions. Although coffee farming has a long tradition in the region, many farmers temporarily shifted to cloves due to market fluctuations. A subsequent 35% decline in clove prices has now prompted a return to coffee. However, farmers continue to face challenges in managing their farms systematically. This study evaluates the benefits and feasibility of coffee cultivation as a strategy to enhance farmer income and economic resilience. Using a descriptive quantitative method, data was collected from 60 local coffee farmers. The analysis employed cash flow indicators, Gross Profit Margin (GPM), Net Profit Margin (NPM), Benefit-Cost Ratio (B/C), and Revenue-Cost Ratio (R/C). The results indicated a consistent positive cash flow, with revenues surpassing production costs. The farming demonstrated high profitability (GPM: 83%; NPM: 66%) and excellent viability (B/C Ratio: 5.10; R/C Ratio: 6.10), confirming it as a robust and profitable business model. Furthermore, these findings underscore the role of coffee cultivation in advancing the Sustainable Development Goals (SDGs), particularly in reducing poverty (SDG 1).