Abstract

Indonesia is among the four largest of coffee beans producing country in the world with production reaching more than half a million tons per year. Pasuruan Regency, located on the slopes of Mount Bromo, has a coffee plantation area of 4,458.20 hectares with a coffee production yield of 1,283.13 tons which has a very high potential of producing good quality Robusta coffee. This potential is used by farmer groups, mainly those under “Dwi Tunggal” farmer group association (Gapoktan) to produce Robusta roasted coffee beans and ground coffee (powder). This study aims to determine the added value of the process of Robusta coffee grinding and roasting and provide recommendations to the farmer groups to face global competition. The research area selection is done purposively considering the potential of the. This study uses value added analysis with the Hayami method. The results showed that the added value of Robusta coffee products in both the milling and roasting process was high and had a positive impact on the welfare of farmer group members. Added value for roasted coffee was Rp. 33,871.08 with a value-added ratio of 48.11%. Added value for ground coffee was Rp. 67,341.15 with the value-added ratio of 64.7%

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