Value Chain Upgrading Strategies for Sustainable Coffee Industry:- A Visionary SWOT Approach

Abstract

The government of India believes boosting exports of agricultural commodities is a sure-shot way to enhance the farmer’s income in the country [1]. Indian coffee is primarily an export-oriented commodity with over 75 per cent of the annual production being exported to various destinations around the world [2]. Small coffee growers dominate coffee production in the country. The study comprised both qualitative and quantitative data collected for coffee value chain actors in Kodagu districts of Karnataka during the study period. The main objective of the study is to develop strategies to upgrade the value chain for the sustainable coffee industry. The results of the study indicate that value chains for coffee are largely diffuse, with limited coordination in terms of quality and specifications in the conventional chain. For up gradation in the value chain in the study area farmers has to adopt Branding and Labeling, value chain through bio-dynamic farming, Sale through direct auction, Collectivization, Direct Sale of ripe cherries to a Corporate, Internet Marketing, organic certification etc [1]. This study suggests that upgrading strategies could be difficult at the level of the chain without any institutional support. Hence, the government needs to develop policies for effortless adoption by the coffee planters of identified upgrading strategies.