Pelita Perkebunan 35 (2) 2019, 156—166 Andriadi et al. ISSN: 0215-0212 / e-ISSN: 2406-9574

Coffee Marketing Mechanism: Social Relations Between Farmers, Collectors, Certification Cooperatives, and Exporters in ,

Andriadi1), Rizabuana Ismail1*), Fikarwin2), Badaruddin1), Ria Manurung1), and Henry Sitorus1)

1)Sociology Master Study Program, Universitas Sumatera Utara, Jln. Dr. A Sofian No.1, Padang Bulan, Medan, Sumatera Utara, Indonesia 2)Department of Anthropology, Universitas Sumatera Utara, Jln. Dr. A Sofian No.1, Padang Bulan, Medan, Sumatera Utara, Indonesia *)Corresponding author: [email protected] Received: 26 June 2019 / Accepted: 29 July 2019

Abstract

Several factors can influence the process of pricing mechanisms, namely competition between market participants, regulation, product quality, and consumer preferences. This is a challenge for Gayo Arabica coffee farmers, where coffee is the main commodity in Central Aceh . This paper aimed to determine the social relations that occur between social actors (farmers, collectors, certifi- cation cooperatives and exporters) in the coffee marketing mechanism. This paper used a qualitative research method with a survey approach by conducting inter- views with farmers, collectors, certification cooperatives and exporters. The results showed that the marketing of Gayo Arabica coffee involved several layers of actors. The coffee product marketing system can be done through two facilities, namely through export sales and domestic sales. There are differences in the income of coffee farmers in marketing coffee abroad or in the country where farmers benefit more from selling coffee products for exports. Relationship among actors are interdependent and bound. Farmers need collectors as tool providers and coffee price informans. Farmers follow cooperative certificates to get fair and more profitable prices.

Keywords: Marketing mechanism, social relations, coffee farmers, collector traders, cooperative certification

INTRODUCTION 172,919 tons of Arabica coffee (Ditjenbun, 2016). The commodity contributes US$824 Coffee has been cultivated across million to the state income. The bountiful Indonesia’s major islands from the west production are supported by the climate and part to the east. Currently there are about altitude of the farm which is very suitable 1.2 million hectares of coffee plantation for the coffee crop agro-climate. The high consisting of 899,627 ha of Robusta cofee production of Indonesian coffee encourage and 330,373 ha of Arabica coffee. Data in the coffee industry to continue to grow and 2016 showed that Indonesia’s coffee total spread in all provinces in Indonesia ranging production reached 639.305 tons consisting from Aceh to Papua with different qualities of 466,492 tons of Robusta coffee and and quantities (Martauli, 2018). The Sumatera

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Island contributes 68% of the total produc- cooperatives, entrepreneurs and exporters. tions with sources located in various places As in a study conducted in Dampit District, such as South (17.2%), Lampung it was shown that there were several actors (17.2%), Aceh (7.4%), Bengkulu (8.8%). involved in the coffee contestation process The remaining is located in Sulawesi (6.5%), such as big traders, coffee shops, small traders Java (17%), Nusa Tenggara (6.7%), and exporters (Purnomo, 2018). This is Kalimantan (1.0%), and Maluku and Papua because, that at each layer of marketing has (0.4%) (Ditjenbun, 2016). This data places limitations and attachments to the marketing Indonesia in the fourth place in the world as layer above and below it. These limitations the main coffee exporter after Brazil, Vietnam, are related to the need for income as the results and Colombia (Sari & Tety, 2017). Coffee of coffee production among the farmers, capital plays an important role in the livelihood of ownership (money) for marketing participant smallholder farmers. The International Coffee in purchasing the coffee and transparency Organization noted that coffee supports of the coffee price. While the attachment farmers and provide them with substantial on the marketing layers is regarding the social employment opportunities. Coffee cultiva- capital which created some sort of dynamic tion requires an extension of labor, espe- social relations in the marketing of coffee. cially in the production process and in the harvesting process, which makes coffee as an important aspect of development in rural MATERIALS AND METHODS areas (Sarirahayu & Aprianingsih, 2018). To analyze the marketing mechanism In the Central Aceh Regency coffee has and social relations that occur between become the main commodity produced by actors, this study used qualitative methods smallholder plantations as the main source with a case study approach. The purpose of export activities and at the same time of this paper was to find out the Gayo coffee supporting the regional economic structure. marketing mechanism through the layers The local residents have also relied on their of actors involved in it. The reason the author lives to become coffee farmers. The marketing chose Central Aceh Regency was the back- of Gayo Arabica coffee in international trade ground of this article because in general, (New York market) is based on the product the Gayo Arabica coffee plantation is a certification (Nurlina & Putra, 2016). The community plantation (privately owned). international product certification of Gayo In addition, there are coffee fruit processing Arabica coffee includes organic and fairtrade and the existence of trade administration certificate. In today’s economy, most producers institutions such as collecting agents, coffee do not sell their products directly to the final entrepreneurs, cooperatives (with certifica- consumers, thus the consumers will not tion and without certification) and exporters directly buy their coffee/product directly from in the process of trading Gayo Arabica coffee. producers. Therefore, a marketing channel This paper analyzed about social relations is needed to deliver the product from producers that occur between actors, namely farmers, to consumers by involving marketing layers. traders, and collectors. The respondents Several layers of marketing involved involved in this paper can summarize the started from collecting traders, certification following:

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Table 1. Description of respondents identity Respondent name Age (year) Job IM 38 Employee in Dinas Perdagangan, Cooperative and UKM (community activity unit) Aceh Tengah District S 48 Quality Control (QC) of X Cooperative – . WRB 45 The author of a book about Gayo Arabica coffee and coffee traders in Takengon. RP 50 Quality Control and Head of Warehouse in Y Cooperative Tanah Gayo IT 35 Employee in the Administrative Section of the Y Cooperative in Baburayan Regency Central Aceh Cooperative. A 35 Quality Control at the Y Cooperative in Tanoh Gayo and a Gayo Arabica Coffee Cupper in Central Aceh District. MA 72 Head Organization of Masyarakat Perlindungan Kopi Gayo (MPKG) ex- Chairman of Forum Kopi Aceh in 2005. An activist who initiated The Geographical Indication (IG) and Gayo Arabica coffee varieties G1 and G2 M 40 Manager in CI Company in Aceh Tengah District and a coffee Q Grader Indonesia, especially in Aceh Tengah District T 45 Manager in Y Cooperative in Takengon and a Gayo Arabica coffee cupper K 50 Employee in Local government in Aceh Tengah District and owner of an organic pilot garden. A coffee activist who initiated the Geographical Indications (IG) and Gayo Arabica coffee varieties G1 and G2. AR 40 Quality Control in Z Cooperative, Aceh Tengah District and owner of Home Coffee Industry AB 45 The head of X Cooperative T 60 Coffee Farmer Arabica Gayo. S 57 Coffee Farmer Arabica Gayo. Z 55 Coffee Farmer Arabica Gayo.

Survey activities carried out by inter- ended up to be the recipients of prices from views and observations of selected respon- buyers. The coffee trading system that has dents, where the respondents were chosen a fixed pattern concurrent with the marketing because they had experience working in this network structure often harms the farmers field and were involved in the process of as they become the victim of the market. buying and selling coffee in the Central Aceh The lack of access which farmers have to District. This helps the data collection and the production process of the coffee, their information about the processes experienced inadequate knowledge about the coffee trade, by each actor in order to market the results has made the farmers increasingly difficult of this coffee plantation both in national and to accept various provisions and requirements international scope. Then the author also tries demanded by the market participants. to find information about social relations In this paper it is stated that the main between actors in the coffee marketing factor in determining the selling price of process, so that income can be known by Gayo Arabica coffee from farmers to the coffee farmers. Collectors is the quality of coffee cherry (the coffee fruit) which assesed by measuring the percentage of water content in the (dry) RESULTS AND DISCUSSION coffee beans. The purchasing price of the The market mechanism of Gayo coffee made by the Collectors is based on Arabica coffee the local market price which is a formula- tion of the price of the New York Market. The problem often faced by Gayo Arabica The coffee cherry picked from the farmers’ coffee farmer is their inability to negotiate farms tends to vary in the types of the fruit the price of coffee. The farmers are always maturity. The more uniform the ripeness is,

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Table 2. Purchase Arabica coffee at the farm level (coffee market price of IDR 64,000) Coffee type Coffee price calculation Purchase price Cherry IDR64,000 x 0.13 x 12 kg) IDR99,840,- (IDR90,000 – IDR100,000) Bean (Water content 40 %) (IDR99,840 x 0.3) IDR29,952,- (IDR28,000 – IDR30,000) Information: - 1 kaleng = 12 kg (cherry). - 1 kg of fresh cherry = 0.13 kg of green beans (water content 11-12%). - 1 kg of dry coffee cherry = 0.3 kg of green beans (water content 11-12%). - 1 kg of dry coffee cherry = 0.5 kg of unselected green beans (water content 15%). the higher the price will be. Whereas for the 1. Cherry coffee beans (dry), the processing of coffee - 700 kg of green bean = 4,200 kg of is still through a traditional system. The drying cherry coffee. process for the coffee beans is done by utilizing the sun. While for the measuring - 4,200 kg of cherries: 12 kg of cherries of the coffee beans size is done by assesing (size 1 kaleng of cherry coffee) = 350 the physical shape and biting the coffee kaleng. beans. - 350 kaleng x IDR100,000 = IDR35,000,000. To measure the percentage of water 2. Green bean with moisture content (MC) content of the coffee beans the process is  40% generallly done by looking at the physical - 350 kaleng x 3.5 kg = 1,225 kg of shape of the coffee beans. However, the green bean MC  40%. coffee farmers only process a certain amount of coffee beans, while the rest is usually - 1,225 kg of grain x price of green done by the Collectors especially during the bean MC  40%. coffee harvest season. In terms of experience, - 1,225 x IDR30,000 = IDR36,750,000. the Collectors have better understanding on Notes: the percentage of water content of the grain - 1 kaleng of cherry coffee = 12 kg of cherry coffee. - 6 kg of cherry coffee = 1 kg of green bean MC 11-12 %. and labu coffee beans compared to the farmers. - 1 kaleng of cherry coffee = 3.5 kg of green bean MC  Such condition is exploited by the Collectors 40%. to obtain higher profits. The process of selling Meanwhile in the foreign market (export), carried out by farmers to collecting traders the Central Aceh Regency, which is the can be seen in the Table 2. Gayo Arabica coffee producing region, Each type of coffee sold by farmers to is referred to as the producer country and collector traders will vary the results of product foreign buyer is referred as consumer country. sales. Each stage of coffee processing It can be seen that the production of Gayo determines the size of the coffee price. In Arabica coffee in 2016 was up to  25,000 this study, the average coffee production tons and as many as 20,000 tons (80%) of of farmers 700 kg/ha of green bean (with the total coffee production was marketed in a moisture content of 12%). Farmers who the world market. The majority of consumers usually sell coffee in the form of cherries of the Gayo Arabica coffee are advanced will have different results to farmers who countries such as in the Americas and the sell coffee in the form of green bean with European Union or referred to as consumer the following calculations: countries. Based on data from Badan

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Investasi dan Promosi Aceh, it is noted that tives are not only for product determina- the EU population is around 500 million, with tion marketed in the New York market, but the average amount coffee consumption of certification is an advantage for coopera- 5 kg/year. tives in the coffee marketing process. Based on the market structure of the Organic certification sets a premium price Gayo Arabica coffee on the international of USD0.20% on each contract. While the market, we can see that the price of coffee Fairtrade certification sets a premium price is always determined by the market. The of USD0.44092% on each contract and the determination of the prices set by the market minimum price for purchasing Gayo Arabica has led the farmers to be in an unfavorable coffee is the USD4,188 on the New York market. position. The farmers are in the first (lowest) Coffee marketing is based on a certification layer of the coffee marketing system and system to continue to run, certification the farmers are only as sellers and recipients cooperatives must pay certification permits of the offered prices from the marketing each year. The permit fee for organic certifi- layers above them, because every layer of cation is IDR100,000,000/year, while the marketing is always looking for profits in permit fee for Fairtrade certification is purchasing coffee owned by farmers. The IDR50,000,000/year. Calculation of contract capital owned by the marketing layers is also value and price of premium product certifi- very influential on the purchase of coffee cation in the marketing system of the coopera- at the farmer’s level. tive certification (one of cooperative in Aceh Tengah District) is presented as follows: Collectors are the second layer in the Gayo Arabica coffee marketing system. a. Contract value Collectors are coffee buyers in each village and are located around the farmer’s location. - 19,000 kg x IDR64,000 = IDR1,216,000,000. The process of purchasing coffee through - IDR1,216,000,000 x 60% = IDR729,600,000 farmers is done by the collectors who purchase (the buyer gives 60% the contract value the coffee fruit directly in the farm right after in the purchase process). the harvest process is finished. For the purchase b. Price of organic certification premium of grain coffee beans, the process is done (in 1 contract) through visiting the farmers who have grain coffee beans or vice versa. Hereafter, the - (US$ 0.20) x 18,000 kg collectors then sell the coffee beans to coffee - 0.20% x IDR13,254 = IDR2,651 businesses and exporters. - IDR2,650.8 x 18,000 kg = IDR47,714,400 The certification cooperative is in the c. Fairtrade certification premium price third layer in the market structure of Gayo (in 1 contract) Arabica coffee. The certification coopera- tives is institution or business entities that - (US$0.44) x 18,000 kg market coffee based on the product certi- - 0.44% x IDR13,254 = IDR5,843.95 fication. Farmers who are members of a - IDR5,843.95 x 18,000 kg = IDR105,191,166 certification cooperative will gain price trans- parency based on the buyer contracts on In 2016 ‘X’ Cooperative had 10 contracts the New York market. The farmers can also on the New York market with an average find out to which country their coffee is quantity of coffee of 18,000 kg. If the value of exported. Certifications owned by coopera- each contract is IDR1,216,000,000, the total

160 PELITA PERKEBUNAN, Volume 35, Number 2, August 2019 Edition Coffee marketing mechanism: Social relations in Aceh, Indonesia value of 10 contracts is IDR12,160,000,000. to determine the type of coffee, the quantity For the price of Organic certification premium of coffee and the quality of coffee produced on 10 contracts reached IDR477,144,000, by each certification cooperative. The part- while the price of Fairtrade’s premium nership will make it more convenient for the certification on 10 contracts reached exporters to fulfill the demand of the buyer. IDR1,051,911,660 (1.05 billion more). The In the fifth layer, the Buyer is an Inter- premium price obtained by ‘X’ Cooperative national buyer who binds contract to purchase from the sale of organic and fairtrade certi- the Gayo Arabica coffee with a certification fication is IDR1,499,055,660 (1.4 billion cooperative in the New York market. In the more). Coffee farmers (members) of the X purchasing contract, there are regulations Cooperative currently number 2,000 farmers about the purchasing price of product certi- involved in the certification program. The fication. Without price regulation, rational involvement of farmers in the certification buyers will try to find products with the lowest program gets 2 (two) benefits, namely the price in order to get maximum profits. determination of the price of the coffee In determining the price of Gayo Arabica purchase contract and the benefits of the coffee, the buyer will contact collectors (coffee premium certification fund. That is farmers marketing intermediary) who has the experi- who are members of cooperatives with an ence to get high-quality Gayo Arabica coffee average coffee production of 700 kg in grain to be marketed to the consumers. The rela- coffee sales of IDR36,750,000 get additional tionship and approach between buyers and profits from the total value of 10 organic collectors has been going on for a long time and fairtrade certification contracts of by forming a trust system. The establishment IDR749,527. However, the amount of of this system has the purpose to demonstrate premium funds is not fully received by professional performance. farmers, because the total profit from the total coffee sales premium funds must be spent on certification permit fees and cooperative Social Relation Among Actors operational costs. Along with the increasing popularity of Fairtrade and Gayo coffee in Social relation among farmers world trade, the higher the level of partici- The people of Gayo , who are generally pation of Gayo coffee farmers in the Fairtrade coffee farmers, have cultural values or tribal certification network. Fairtrade certification characteristics in their community life. Some provides several benefits to farmers, namely of the cultural values of Gayo farmers include fair and transparent prices, more than working hard (mutentu), helping each other premium funds (premium fees), and the (alang tulung) and high self-esteem position of farmers in the international market (bersememelen). These values become the becomes stronger. idealism in the success of the coffee farms The fourth layer is the exporter. The owned by the farmers. Each value shows coffee price is determined by the exporter the function and purpose of the farmers for based on a coffee purchase contract agree- activities regularly conducted in the culti- ment with the buyer. In the marketing process, vation of coffee plants and coffee produc- exporter must conduct partnerships with tion. The success of a farmer in the coffee certification cooperatives and the Gayo cultivation management system and excel- Arabica coffee entrepreneurs/businesses in lence in coffee production will become an Central Aceh Regency. The partnership aims example for other farmers.

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Generally, the Gayo Arabica coffee farmers machines for the coffee cherry. Farmers with interacting with other farmers regarding the a better economic status could easily have development of each coffee plantation they the technology of plantation sub-sector manage, including the condition and location equipment. While farmers with lower economic of the garden, the physical form of their coffee level will find it difficult to have the technology crops, types of coffee varieties, the processing of plantation sub-sector equipment and prefer of coffee, coffee production, and income. to borrow from other farmers, especially those Different levels of education, income and who have a bond of kinship. experience will determine the coffee culti- In the process of harvesting the coffee vation system, farm arrangement and coffee cherry, farm owners will also use the help of productivity level of each farmer. However, other farmers to pick the coffee cherry. The a strategic location of farm and accessibility coffee cherry picking activity is conducted by the farmers is the main determining factor based on the agreement of fellow farmers in the development of coffee plantation for by assessing the maturity level of the coffee each farmer. If these factors are shared by cherry picked of each farmer. The picking two farmers, when there is a significant dif- process of the coffee cherry is conducted ference in the yields of these farmers in their alternately from one farm to another until coffee plants and coffee production, then the finished. After the coffee cherry has been farmer who is not superior will feel ashamed harvested, the farmer who is the owner of to the superior farmer. the farm will provide a salary to the farmers The social relation of fellow farmers involved determined by the amount of coffee based on mutual cooperation and friendli- cherry they picked. Whereas in the process ness can be seen in the process of the coffee of peeling coffee cherry, the farmers who farming, the process of harvesting the coffee do not own a peeler machine, tend to bring cherry and the process of peeling the fruit their coffee to other farmers around the of coffee cherry. Each farmer (farm owner) farmer’s residence who owns one. will involve several other farmers in the process of the coffee cultivation. The process Social relation between farmers and collectors of coffee cultivation includes the maintenance of the crops, fertilizer application and clearing During the coffee harvest season, the of wild grass in the location of the coffee Collectors become the main target of the farms. Farmers who are involved in this farmers in selling their coffee production. process tend to have a special bond or kinship, The existence of collectors around the location and emotional relationships with farm owners. of the farm and the residence of farmers, However, looking at the economic condi- as well as their ownership on facilities and tions of the farmers who were quite alarming, equipment (transporting vehicles and coffee the farm owners will provide labor costs to cherry peeler machine), cash payment and the farmers who were involved in the activity the availability of capital loans are the deter- process. Some technological equipment in mining factors for the farmers to sell their the plantation subsector that is used at the coffee production to certain collectors of Gayo Arabica coffee farmers in Central Aceh their choice. The close distance between the Regency includes grass-cutting machines, location of the farmer’s residence and the fertilizer spraying machines and fruit peeling collectors makes it easier for farmers to

162 PELITA PERKEBUNAN, Volume 35, Number 2, August 2019 Edition Coffee marketing mechanism: Social relations in Aceh, Indonesia obtain coffee price information. Information by farmers became another reason for the on the coffee price will determine the income utilization of transporting vehicles owned by from the sale of coffee produced by the collectors. farmers. In general, the farmers will ask Usually, the farmer who has emotional about the current price to several collectors relation and kinship to the collectors has located around the farmer’s residence to look easier access for the processing of their for differences in the price of coffee. coffee cherry. In this process, an agreement The limitation of the farmers for not is usually carried out between the farmer owning vehicles and the peeling machine for and the collectors. After the coffee cherry coffee cherry is one of the causes for farmers has been processed into grain coffee beans, to become always depend on collectors who the farmer must sell it to the collectors with have these facilities. Collectors generally the previously determined price benchmark. purchase the coffee in the form of coffee If the farmer violates the agreement, the cherry and grain using a pick-up truck by collectors will not be interested in buying going around the coffee plantation area and the farmer’s coffee. Thus, it will have an the farmer’s residence. Therefore will ease impact on the farmers in selling their coffee the farmers in the use of transportation production in the next period, because the facilities to transport their coffee produc- farmer have to find new collectors to sell tion that has been picked in the farm or their coffee for. which has been processed into the grain. Seen from the average coffee production of farmers with the yield amount of 700 kg/ Benefits for farmers as members of hectare/year (± 500 kg of coffee cherry/ the certification cooperative week and 142 kg of grain/week) it must Coffee certification is an activity to foster require 1 unit of pickup truck with an open and educate the farmers about the proper tub to transport the coffee cherry and 1 unit and correct coffee cultivation process in of pedicab to transport the coffee grain, accordance to the established standards, in therefore it can be sold to the collectors. order to improve their coffee quality and to The low level of the farmer’s economy encourage farmers to care about the envi- has led the farmers to rarely have transporting ronment and social conditions, therefore the vehicle ownership that is needed during the farming is sustainable. The coffee certifi- coffee harvest season. Coffee farmers usually cations obtained by the certification coopera- only own a motorbike which then is used tives in Central Aceh Regency has only two to transport the farmer from their home to types of certification, namely organic and coffee plantations and for other purposes fairtrade certification. In order to become in the daily lives of the farmers. To trans- a member of the certification cooperative, port the coffee product in the form of coffee the Gayo Arabica coffee farmers in Central cherry from the farm to the collectors, it Aceh must follow a product certification certainly becomes a big risk to the farmer program. Each product certification provides when it is packaged in a 50 kg plastic sack. benefits for the farmers for their coffee plan- The same procedure also found in grain tation, products and the premium price pro- coffee farmers. In addition to safety risks, vided by the product certification agencies the risk of damage to the motorbikes owned to the farmers.

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In organic certification, there are several The gayo Arabica coffee farmers in benefits which will be obtained by the farmers, other regions in Central Aceh has also joined including the cultivation system of their to become members of the fairtrade certifi- Arabica coffee plants will be carried out with cation cooperative. The fairtrade is a social organic system, social protection, and product movement with a market-based approach protection. The Arabica coffee cultivation which aims to reduce poverty at a global with the organic farming systems in principle scale and to promote sustainable trade is emphasizing the importance of preserving systems. The Central Aceh Gayo Arabica the environment by applying adequate culti- coffee farmers who join and have been vation practice, therefore, the crop produc- registered by Fairtrade-certified cooperatives tion will be increased and sustainable. Addi- will gain benefit from the certification process. tionally, organic certification also plays a role Due to the high cost of certification by the in marketing as the organic product is highly cooperatives as certification holders and ones demanded by the consumers in developed who market the coffee in the fair trade. After countries. The organic certification is a process gaining Fairtrade certification, cooperatives to obtain the recognition that the process must conduct a number of procedures such as of farming is organic or the processing of strengthening the organization, documenting the organic product is conducted based on activities and production, making reports and the predetermined standards and regulations. receiving visits from Fairtrade Labeling If it meets the organic standards and regu- Organization (FLO) inspector, who will lations, the producers will obtain an organic come to the site periodically both in terms certificate and have the right to put organic of guidance and audit matters (Chairawaty, labels on the products they produced and 2017). The FLO itself is a non-profit organi- on the products when it is marketed. zation that is responsible for the directing and Another benefit of this certification is executing, setting standards and supporting that it will provide social protection which producers and traders in trade activities benefits the farmers and for child protec- within the fair trade. tion. The female farmers will also have the The results of this paper indicate that same opportunities as male farmers to obtain social actors are participating in the coffee training, credit facilities, increase resources, marketing process in Central Aceh Regency. nutrition, health, and protection from sexual In this paper, there are several actors involved, harassment. Whereas for the protection of namely, farmers, collectors, certification children, the farmers and the certification cooperatives and exporters. Each actor has cooperatives must not hire children under their duties and functions and unconsciously 15 (fifteen) years old as workers, both as have built relationships that are interdependent farm workers and workers in the certifica- and bound to one another. This fact also tion cooperative. Because organic certifica- occurs in the process of marketing Arabica tion has determined that underage children coffee in South Sulawesi in Rinding Allo District. must obtain equal education and recreation. Where market structures that do not compete The protection of products on organic certi- perfectly lead to increased dependence of fication is a guarantee for the products pro- farmers on marketing domination by exporters duced by the farmers. The guarantee of and wholesalers (Sallatu, 2006). The form organic products makes it easy for the Gayo of dependence that occurred in this paper Arabica coffee farmers to market their coffee is not much different from what Sallatu both in the domestic and international market. mentioned. Coffee farmers depend on the

164 PELITA PERKEBUNAN, Volume 35, Number 2, August 2019 Edition Coffee marketing mechanism: Social relations in Aceh, Indonesia presence of traders in providing the equip- certification only provides space in the ment needed to process coffee beans and coffee marketing process both in short as a means for coffee farmers to sell their and long term. The benefits of full product coffee. Collecting traders can have several certification are only felt by exporters and trading functions such as sales, purchasing, collectors to seek profits with the capital storage, transportation, selection, packaging, they have in purchasing coffee. While farmers market information and financing functions are only involved as producers of products (Siregar et al., 2015). While the determina- from certification programs and offer price tion of the price of coffee is not only deter- recipients (price takers). The relationship mined by the international market but also among actors is an associative relationship. by local prices. Therefore, farmers have two The relationship between cultural farmers choices to market coffee, namely in domestic where the community still applies the or export. Putri et al. (2013) stated that there value of cooperation between them is good, were 4 coffee marketing channels in Aceh especially in coffee harvesting and mainte- Tengah and Bener Meriah districts, namely nance of coffee plants. The relationship the first channel, farmers-collectors-coopera- between farmers and collectors is also a collabo- tives-exporters (non-cooperatives). The ration where the collectors help farmers in second channel, farmer-collector-exporter providing the equipment needed by farmers (non-cooperative). The third channel, farmers- in this coffee plantation activity. However, collectors-exporters (cooperatives) -exporters as this activity progresses, the relationships (non-cooperatives) and the fourth channel between them become dependent relation- namely farmers-collectors-exporters (coopera- ships, where farmers depend on the price tives). Through these studies and the results of coffee determined by international and found by the authors indicate that the coffee local markets. marketing mechanism in Central Aceh Regency will involve at least 4 actors, namely farmers, collectors, cooperatives, and exporters. REFERENCES Chairawaty, F. (2017). Dampak pelaksanaan perlindungan lingkungan melalui CONCLUSIONS sertifikasi Fair Trade (studi kasus: petani kopi anggota Koperasi Permata The marketing mechanism of Gayo Gayo, Kabupaten Bener Meriah, coffee in Central Aceh Regency involves Nanggroe Aceh Darussalam). Jurnal several actors ranging from farmers, traders, Ilmu Lingkungan, 10, 76–84. and collectors which has caused the Martauli, E.D. (2018). Analysis of coffee marketing system of Gayo Arabica coffee production in Indonesia. Journal of in Central Aceh District run in efficiently. Agribusiness Science, 1, 112–120. Many processes must be passed cause farm- Nurlina & E. Putra (2016). An analysis of factors ers always receive the lowest prices that affect the export of Gayo coffee in Bener have an impact on farmers income from the Meriah Regency, Aceh, Indonesia. production of coffee plants. The existence Academic Journal of Economic Studies, of cooperative certification, ownership of 2, 102–113. product certification and Warehouse Receipt Ditjenbun (2016). Statistik Perkebunan Indonesia System which is the governments concern (The Crop Estate Statistics of Indonesia). for farmers, has not been able to increase Direktorat Jenderal Perkebunan- farmers income from coffee sales. Product Kementerian Pertanian. Jakarta.

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Purnomo, M. (2018). Contesting Indonesia’s Tana Toraja dan Enrekang, Sulawesi single origin coffee market: A dynamic Selatan. Tesis, Institut Pertanian capabilities perspective. Asian Social Bogor. Bogor, Indonesia. Science, 14, 91–101. Sarirahayu, K. & A. Aprianingsih (2018). Strategy Putri, M.A.; A. Fariyanti & N. Kusnadi (2013). to improving smallholder coffee Struktur dan integrasi pasar kopi farmers productivity. The Asian Journal Arabika Gayo di Kabupaten Aceh of Technology Management (AJTM). Tengah dan Bener Meriah. Buletin 11, 1–9. RISTRI, 4, 47–54. Siregar, M.; Salminah & Iskandaini (2015). Sari, D.R. & E. Tety (2017). Export competitiveness Analisis tataniaga rambutan di kota analysis of coffee Indonesia in the binjai (Studi kasus: Kelurahan world market. Jurnal Ilmiah Ekonomi Pahlawan, Kabupaten Langkat). Journal dan Bisnis Maret, 14, 105–114. of Agriculture and Agribusiness Socioeconomics. 2, 1–11. Sallatu, I.A. (2006). Analisa Pangsa Pasar dan Tataniaga Kopi Arabika di Kabupaten **0**

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