Abstract
Argopuro mountain in Jember district, East Java, has the potential to develop coffee agroindustry. The areas include Arjasa, Sukorambi, Panti, Bangsalsari, Tanggul and Sumberbaru sub-districts. This research was conducted to determine potential coffee-producing locations for coffee agro-industry development. The research was quantitative and qualitative research using location quotient (LQ) method, then for region with highest LQ value, then factors identified for development coffee agroindustry using factor analysis with KMO and Bartlett's Test. The highest LQ results were found in Bangsalsari sub-district which (5.02). Identification of factors affecting the development of coffee agro-industry in the Bangsalsari contained 9 factors, namely education, members farmer group, institutions, marketing, quality, area, production, capital and technology. Analysis of factor obtained the KMO value of 0.590, significance value of Bartlett's Test, and Sphericity was 0.001. The factor analysis was appropriate for coffee agroindustry development and results of anti-image matrices obtained 5 factors, namely marketing (0.737), quality (0.709), production (0.707), capital (0.673) and technology (0.633). These factors influence the development of coffee agro-industry in Argopuro mountain area Jember.
Highlights
Coffee has an important role in improving the country's economy, employment providers, and income sources of farmers
Of thesesix coffee producing districts in Jember district which are located in Argopuro mountain area, location quotient (LQ) analysis is carried out
Calculation by LQ analysis uses a comparison of coffee crop production with other commodities in the plantation sector in each district of the Argopuro mountain range in Jember district (Table 1)
Summary
Coffee has an important role in improving the country's economy, employment providers, and income sources of farmers. Coffee industry involved in the process of cultivation, production or processing to become a product and marketing process [1]. Coffee is produced in more than 50 countries in the world, including Indonesia. Total coffee production in Indonesia in 2014 was 643,857, more than 96% of it was from smallholder plantations, 1.82% from state plantations and 1.99% from private plantations [2]. The coffee variety were robusta and arabica coffee. The Argopuro mountain area of Jember Regency precisely in districts of Sumberbaru, Tanggul, Bangsalsari, Panti, Sukorambi and Arjasa produces quite large coffee
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