The objectives of this study are 1) To describe the Arabica coffee cultivation process at the Solok Radjo cooperative; 2) To describe the process of processing Arabica coffee beans into ground coffee at the Solok Radjo Cooperative; and 3) The data analysis method used in this study is the Hayami method.
The results of this study indicate that: (1) Arabica coffee cultivation carried out at the Solok Radjo Cooperative includes seed selection, soil preparation, fertilization, pest and disease control, and harvesting; (2) The process of processing coffee beans into ground coffee carried out by the Solok Radjo Cooperative begins with sorting coffee beans, roasting, cooling, and the final stage is packaging; and (3) The added value obtained from processing Arabica coffee beans into ground coffee at the Solok Radjo Cooperative is IDR. 734,583.33 per kg with a value-added ratio of 64,95% and a profit of IDR. 714,583.33 per kg with a profit rate of 63.18%.
Coffee is one of the most important agricultural commodities in the world and plays a strategic role in supporting rural economies, employment, and export earnings in many developing countries (Gizaw et al., 2022; Massrie, 2025; Muhie, 2022). Indonesia is recognized as one of the largest coffee-producing countries globally, with Arabica coffee serving as a premium commodity due to its distinctive flavor, aroma, and higher market value compared to Robusta coffee (Lubis & Lubis, 2024; Tampubolon et al., 2023). The increasing demand for specialty coffee in domestic and international markets has encouraged coffee-producing regions to improve product quality and develop value-added processing activities (Ayele et al., 2026; Ma'ruf et al., 2025). Consequently, coffee is no longer viewed merely as a primary agricultural commodity but as a product with substantial opportunities for agroindustrial development and economic transformation.
The development of coffee agroindustry is closely associated with efforts to increase farmers' income through downstream processing activities. Value addition through processing enables producers to transform raw agricultural commodities into products with higher economic value and greater market competitiveness (Białowąs & Budzyńska, 2022; Hu et al., 2025; Istudor et al., 2026). In the coffee sector, processing activities such as roasting, grinding, packaging, and branding contribute significantly to increasing product prices and expanding market opportunities. Previous studies have demonstrated that agroindustrial processing can improve profitability, strengthen market positioning, and create employment opportunities in rural areas (Pansantia et al., 2022; Singh, 2021). Therefore, understanding the economic benefits generated through coffee processing is essential for designing sustainable agribusiness strategies.
Cooperatives play an important role in supporting coffee farmers by facilitating production, quality control, processing, and marketing activities. Through collective action, cooperatives help farmers overcome limitations related to capital, technology, and market access. In Indonesia, coffee cooperatives have become key institutions in promoting sustainable coffee production and improving the bargaining position of smallholder farmers. The Solok Radjo Cooperative is one example of a successful coffee cooperative that has actively developed Arabica coffee production and processing activities in Solok Regency, West Sumatra. The cooperative has gained recognition for producing high-quality Arabica coffee with unique sensory characteristics that meet market preferences. Solok Radjo Cooperative was established to help coffee farmers improve the quality and selling value of their coffee products (Yusmarni et al., 2020). This cooperative focuses on the development of Arabica coffee, which is one of the leading commodities in the region (Ashardiono & Trihartono, 2024). The existence of cooperatives plays a crucial role for farmers to unite and collaborate in overcoming various challenges in the production line. One tangible example is the Solok Radjo Cooperative, which has a competitive advantage in the coffee product industry, particularly in the characteristics of the Arabica coffee flavor it produces. Based on this potential, this study aims to examine in depth three main aspects. First, this study describes how the Arabica coffee cultivation process is carried out by the Solok Radjo Cooperative. Second, an analysis is conducted to describe the post-harvest processing that transforms Arabica coffee beans (green beans) into ready-to-consume coffee powder. Third, this study focuses on analyzing the amount of added value created from the process of transforming coffee beans into coffee powder at the cooperative.
Through this approach, this study is expected to provide both theoretical and practical contributions to various parties. For the author and future researchers, this study can broaden knowledge, understanding, and practical experience regarding the downstream processing of coffee products, while also serving as a valid academic reference for future value-added analysis studies. On the other hand, for agro-industry business actors, this research provides concrete information regarding projections of added value and estimated revenue obtained, which can serve as strategic indicators in the development of business scale. Finally, for the government and relevant policymakers, this analysis is expected to contribute ideas and serve as objective consideration in establishing regulations and development programs for a sustainable coffee processing industry.
The basic method used in this study is quantitative descriptive. This research was conducted in June 2025 at Koperasi Solok Radjo, located at Jl. Lingkar Aie Dingin, Jorong Data, Nagari Aie Dingin, Kecamatan Lembah Gumanti, Kabupaten Solok, West Sumatra Province. To support the analysis, the data collected in this study consist of primary and secondary data. Primary data were obtained directly from the main source through in-depth interviews with key informants, involving the leadership and two employees of Koperasi Solok Radjo. Meanwhile, secondary data were obtained indirectly through literature document studies or third parties relevant to the research topic.
The variables observed in this study are structured based on the three main research objectives:
1. Cultivation Process: To address the first objective regarding the description of the Arabica coffee cultivation process, the variables observed include environmental factors, plant maintenance techniques, and post-harvest handling that affect the final quality of coffee beans.
2. Post-Harvest Processing Process: To answer the second goal regarding the processing of Arabica coffee beans into ground coffee, observations are focused on three main sub-variables, namely: The raw materials used, including the type, humidity, cleanliness, and defects in the coffee beans; The processing process, including roasting, roasting temperature, doneness level, and cooling; Grinding process, including the diversity of coffee powder sizes and the type of grinding applied.
3. Value-Added Analysis: Finally, to address the third objective related to the value-added analysis of the transformation of coffee beans into ground coffee, the observed variables focus on the groups of output, input, and price. The specific components measured include the volume of output produced (kg/production), the volume of raw materials used (kg/production), labor allocation (Man-Days/production), output price (IDR/kg), as well as the prevailing average labor wage (IDR/kg).
The data analysis used in this study includes qualitative and quantitative descriptive analysis. Qualitative descriptive analysis is conducted to answer the first and second research objectives, which are to describe the cultivation and processing of Arabica coffee beans into ground coffee at Solok Radjo Cooperative. Qualitative descriptive analysis is used to obtain a depiction of the coffee cultivation and processing system at Solok Radjo Cooperative, which includes a description of the business and the techniques of processing Arabica coffee into ground coffee. Quantitative descriptive analysis is conducted to answer the third research objective, which is to analyze the added value from processing Arabica coffee beans into ground coffee at Solok Radjo Cooperative during a single production process. The purpose of calculating the added value is to determine how much added value is obtained by Solok Radjo Cooperative. To analyze the magnitude of the added value, it can be explained by using the Hayami method value-added analysis.
Arabica coffee plants (Coffea Arabica) are one of the leading plantation commodities that have high economic value in both domestic and international markets. The Solok Radjo Arabica coffee cultivated comes from the Sigarar Utang and Kartika varieties. The Arabica coffee cultivation carried out by the Solok Radjo Cooperative includes Seed Selection, Land Management, Fertilization, Pest and Disease Control, Harvesting, and Post-harvest.
The process of processing Arabica coffee beans into ground coffee at Solok Radjo Cooperative uses various equipment such as roasting machines, grinders, and sealers: (1) Coffee bean sorting, (2) Roasting, (3) Cooling, (4) Grinding, and (5) Packaging.
Based on the analysis, Solok Radjo Cooperative uses 10 kg of raw materials in a single production and produces 8.7 kg of coffee powder. The added value obtained from processing Arabica coffee beans into ground coffee at Koperasi Solok Radjo, Lembah Gumanti Subdistrict, Solok Regency, is IDR 734,583.33 per kg with an added value ratio of 64.95% and total profit of IDR 714,583.33 per kg with a profit rate of 63.18%.
The results indicate that processing Arabica coffee beans into ground coffee at the Solok Radjo Cooperative generates a high added value. These findings demonstrate that downstream processing activities significantly increase the economic value of coffee compared to selling coffee beans as raw materials. The high added value is closely related to the transformation process, including sorting, roasting, grinding, and packaging, which create a product with greater market acceptance and a higher selling price.
The profit distribution analysis also reveals that company profit accounts for 71.39% of the processing margin, while labor receives only 1.99% and other inputs account for 26.61%. This indicates that the economic benefits of processing activities are largely derived from managerial efficiency and product value enhancement.
From the results of the research and discussion, it can be concluded that Arabica coffee cultivation carried out at Koperasi Solok Radjo includes seed selection, soil processing, fertilization, pest and disease control, harvesting, and post-harvest. The process of processing coffee beans into ground coffee carried out by Koperasi Solok Radjo starts with coffee bean sorting, roasting, cooling, grinding, and the final stage is packaging. The added value obtained is IDR 734,583.33 per kg with an added value ratio of 64.95% and total profit of IDR 714,583.33 per kg with a profit rate of 63.18%.
Future research is recommended to analyze the added value of Arabica coffee using a broader sample involving several coffee cooperatives and agroindustries in different regions. Further studies may also examine the influence of product diversification, branding strategies, and digital marketing on the added value and profitability of coffee processing businesses.
This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.