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The Impact of Coffee Certification on the Economic Performance of Indonesian Actors The Impact of Coffee Certification on the Economic Performance of Indonesian Actors Citation for published version (APA): Sri Astuti Soeryaningrum Agustin, E. (2018). The Impact of Coffee Certification on the Economic Performance of Indonesian Actors. Datawyse / Universitaire Pers Maastricht. https://doi.org/10.26481/dis.20180508es Document status and date: Published: 01/01/2018 DOI: 10.26481/dis.20180508es Document Version: Publisher's PDF, also known as Version of record Please check the document version of this publication: • A submitted manuscript is the version of the article upon submission and before peer-review. There can be important differences between the submitted version and the official published version of record. People interested in the research are advised to contact the author for the final version of the publication, or visit the DOI to the publisher's website. • The final author version and the galley proof are versions of the publication after peer review. • The final published version features the final layout of the paper including the volume, issue and page numbers. Link to publication General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. • Users may download and print one copy of any publication from the public portal for the purpose of private study or research. • You may not further distribute the material or use it for any profit-making activity or commercial gain • You may freely distribute the URL identifying the publication in the public portal. If the publication is distributed under the terms of Article 25fa of the Dutch Copyright Act, indicated by the “Taverne” license above, please follow below link for the End User Agreement: www.umlib.nl/taverne-license Take down policy If you believe that this document breaches copyright please contact us at: [email protected] providing details and we will investigate your claim. Download date: 23 Sep. 2021 Esther Sri Astuti Soeryaningrum Agustin Cover Picture: © Copyright Esther Sri Astuti Soeryaningrum Agustin Maastricht 2018 Printing: Datawyse | Universitaire Pers Maastricht UMP ISBN 978 94 6159 820 2 UNIVERSITAIRE PERS MAASTRICHT The Impact of Coffee Certification on the Economic Performance of Indonesian Actors DISSERTATION to obtain the degree of Doctor at Maastricht University, on the authority of Prof. dr. Rianne M. Letschert, Rector Magnificus, in accordance with the decision of the Board of Deans, to be defended in public on Tuesday 08 May 2018, at 16.00 hours by Esther Sri Astuti Soeryaningrum Agustin born in Semarang on August 17, 1977, Indonesia Supervisor Prof. Pieter Glasbergen Prof. Bustanul Arifin (Lampung University, Indonesia) Co-supervisor Dr. Astrid Offermans Assessment Committee Prof. Pim Martens (Chairman) Prof. Wiebe Bijker Prof. Joop de Kraker Dr. R. Hanung Ismono (Lampung University) This PhD research was funded by the Royal Netherlands Academy of Arts and Sciences (KNAW) and the Directorate General of Higher Education (DIKTI) of the Ministry of Education and Culture of Indonesia and part of the SPIN project on ‘’Social and Economic Effects of Partnering for Sustainable Change in Agricultural Commodity Chains in Indonesia”. Table of contents List of Figures ........................................................................................... viii List of Tables .............................................................................................. ix Chapter 1 Introduction ................................................................................. 1 1.1 Personal background ............................................................................................ 2 1.2 Profile of the Indonesian coffee Sector ................................................................ 3 1.3 Actors and their relationships inthe Indonesian coffee value chain .................... 5 1.4 Coffee certification in Indonesia ........................................................................... 9 1.5 The debate on sustainability standards and certifications ................................. 18 1.6 Research aims and research questions .............................................................. 20 1.7 The conceptual framework of economic performance ...................................... 21 1.8 Scientific and policy relevance............................................................................ 24 1.9 Challenges in the fieldwork ................................................................................ 24 Chapter 2 The Impact of Coffee Certification on the Economic Performance of Indonesian Actors ........................................... 27 2.1 Introduction ........................................................................................................ 28 2.2 Value Chain Analysis: A Framework to Determine Economic Performance ....... 29 2.3 RESULTS AND DISCUSSION ................................................................................. 34 2.3.1 Economic Performance of Indonesian Actors and the Role of Certification Farmers ............................................................................ 34 2.3.2 Traders .................................................................................................. 38 2.3.3 Exporters .............................................................................................. 38 2.3.4 Roasters ................................................................................................ 38 2.3.5 Distribution of Economic Rent .............................................................. 39 2.4 CONCLUSION ...................................................................................................... 42 Chapter 3 Sustainability Certification and Economic Performance: An Analysis of Coffee Marketing Channels in Indonesia ................. 45 3.1 Introduction ........................................................................................................ 46 3.2 Research field ..................................................................................................... 48 3.3 Methodological framework ................................................................................ 50 3.3.1 Localization of channels. ...................................................................... 50 3.3.2 Performance of channels – efficiency. ................................................. 50 v 3.3.3 Performance of channels – equity. ....................................................... 52 3.3.4 Performance of channels – combining efficiency and equity ............... 52 3.4 Localization of Indonesian coffee channels ........................................................ 53 3.5 Dominant coffee channels .................................................................................. 56 3.6 Efficiency of Indonesian coffee channels ........................................................... 58 3.7 Analysis of the equity of dominant channels ..................................................... 60 3.8 Performance of Indonesian coffee channels: combining Efficiency and Equity .................................................................................................................. 62 3.9 Conclusion .......................................................................................................... 62 Chapter 4 Coffee Certification and Economic Performance: the Role of Partnership Constellations in Indonesia ................................... 65 4.1 Introduction ........................................................................................................ 66 4.2 Materials and Methods ...................................................................................... 67 4.2.1 Business models and economic performance ...................................... 67 4.2.2 Partnership constellations in the Indonesian coffee sector ................. 68 4.3 Methods ............................................................................................................. 70 4.3.3 Operationalization of economic performance ..................................... 71 4.3.4 Data analysis ......................................................................................... 72 4.4 Results ................................................................................................................ 73 4.4.5 Partnership constellations and smallholders’ economic performance ......................................................................................... 73 4.4.6 Intensity of differences in economic performance based on partnership constellations .................................................................... 76 Total coffee production (kg/ year) ...................................................................... 78 4.5 Discussion ........................................................................................................... 79 4.6 Conclusion .......................................................................................................... 80 Chapter 5 The Impact of Coffee Certification on Poverty Alleviation among Indonesian Coffee Smallholders .................................... 83 5.1 Poverty in Indonesia ........................................................................................... 84 5.2 Methods ............................................................................................................
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