Coffee Supply Chain Research Articles

Farmer sales decisions and the sustainability of the coffee supply chain in Indonesia

The aims of this study: 1) analyze of Indonesian coffee farmers in determining the purpose of selling coffee; 2) analyze the factors that influence the decisions of Indonesian coffee farmers in determining coffee sales for improving the sustainability of the Indonesian coffee supply chain. This study uses data from the Indonesian Plantation Business Household Survey and multinomial logistic analysis methods. The number of respondents analyzed was 21 361 coffee farmers scattered throughout Indonesia. Coffee farmers in Indonesia sell to collectors, markets, village unit cooperatives, and plantation companies. The percentage of farmers coffee sales is through collectors due to distance, cost, ease of cash, and ease of transaction. In contrast, farmers who deal with the company will tend to sell coffee to the company because of the partnership. improvement of quality consistency and production continuity is carried out such as with Geographical Indications (GI) of production center areas. This can be done by various supply chain actors such as the Community Concerned for Geographical Indications (MPIG) in conducting counseling and mentoring for farmers. This can trigger the coffee supply chain in Indonesia.

Coffee Supply Chain Management: A Case Study In Ciamis, West Java, Indonesia

Ciamis Regency is a potentially developed coffee-producing area in West Java with Arabica and Robusta coffee types. However, in the current marketing process, it is still faced with various obstacles that make the supply chain flow non-optimal. Therefore, in optimizing the Ciamis coffee supply chain management, it is necessary to conduct further research related to supply chain flow, performance, and farmer’s share. This study aims to determine the flow, performance, and farmer’s share of the coffee supply chain in Ciamis Regency. This research uses the descriptive, SCOR, and farmer’s share methods. The results showed that the supply chain flow consisted of material flow in the form of green beans that flowed from upstream to downstream, the flow of information in the form of information (quantity, price, and quality of green beans) that flowed from upstream to downstream and from downstream to upstream, and financial flows in the form of cash payment transactions that flow from downstream to upstream. The performance of coffee supply chain management in Ciamis Regency has an average category with a value of 56.91. The most significant farmer's share value is found in the distribution channel from farmers to inter-regency traders, ending with outside-regency traders.

Colombian Origin Coffee Supply Chain Traceability by a Blockchain Implementation

This exploratory study explains how to implement Blockchain technology for a supply chain by a proof of concept on Hyperledger Fabric, an open distributed ledger platform. This approach allowed to identify the feasibility and some implementation challenges, yield feedback, and exemplify one manner of tracing product origin using a distributed ledger technology. For this purpose, the case study of origin coffee is analyzed, given the relevance of traceability in this type of coffee and the cultural and economic importance of this agricultural product in the Colombian context. In addition, the data stored in the Blockchain and some technological architecture aspects are discussed.

Understanding the importance of farmer–NGO collaboration for sustainability and business strategy: Evidence from the coffee supply chain

AbstractDespite the attention to governance strategies based on international market intervention and product differentiation, research on how farmers and NGOs collaborate and share knowledge in production countries to help address sustainability challenges bottom‐up remains limited. Through evidence from the coffee supply chain, this article endorses a human ecology viewpoint and shows how farmer–NGO collaboration in domestic markets can help foster relevant environmental, social, and economic upgrades. More significantly, it provides evidence of the importance of farmer–NGO collaboration for business strategy and indicates how NGOs can help farmers to grow as independent business owners and build their own market channels locally. By conceptualizing a strategic framework of farmer–NGO collaboration to better overcome sustainability challenges bottom‐up and empower farmers as independent business owners, while also outlining the possible unintended consequences of such collaboration, this article finally contributes to the literature on the coffee supply chain and offers generalizable takeaways for NGO strategy.

A hybrid modeling approach for resilient agri-supply network design in emerging countries: Colombian coffee supply chain

Sustainability and resilience in Agri-Food Supply Chains is a challenging topic of current interest in the research community. Resilience for Agri-Food Supply Chain (AFSC) is the capability of the supply network to manage and mitigate disruptions due to global warming and natural phenomena such as landslides and floods of crops, among others caused by humans. A significant challenge is to design efficient and resilient AFSCs in emerging countries while perishability constraints are considered. A methodology to design an AFSC for emerging countries is addressed in this research. The phenomena that aid in identifying critical aspects of the AFSC affecting their resilience are identified. The former approach combines optimization and simulation schemes by considering resilience metrics related to availability and connectivity. Indeed, the solution approach addresses the uncertainty by using simulation of disruptive events and finding resilient designs using mathematical programming. The proposed framework has been evaluated in a Colombian coffee supply chain. The obtained results show the efficiency of the proposed scheme to design AFSCs and allow the practitioners to measure, predict, compare, and improve the level of resilience of their supply chains (SCs).

Coffee Silverskin: Chemical and Biological Risk Assessment and Health Profile for Its Potential Use in Functional Foods.

The coffee supply chain is characterized by a complex network with many critical and unsustainable points producing a huge amount of waste products. Among these, coffee silverskin (CS), the only by-product of the coffee roasting phase, has an interesting chemical profile that suggests potential use as a food ingredient. However, few data on its safety are available. For this reason, the purpose of the study was to assess the occurrence of chemical and biological contaminants in CS, and the resulting risk due to its potential consumption. Essential, toxic, and rare earth elements, polycyclic aromatic hydrocarbons (PAHs), process contaminants, ochratoxin A (OTA), and pesticides residues were analyzed in three classes of samples (Coffea arabica CS, Coffea robusta CS, and their blend). Furthermore, total mesophilic bacteria count (TMBC) at 30 °C, Enterobacteriaceae, yeasts, and molds was evaluated. The risk assessment was based upon the hazard index (HI) and lifetime cancer risk (LTCR). In all varieties and blends, rare earth elements, pesticides, process contaminants, OTA, and PAHs were not detected except for chrysene, phenanthrene, and fluoranthene, which were reported at low concentrations only in the arabica CS sample. Among essential and toxic elements, As was usually the most representative in all samples. Microorganisms reported a low load, although arabica and robusta CS showed lower contamination than mixed CS. Instead, the risk assessment based on the potential consumption of CS as a food ingredient did not show either non-carcinogenic or carcinogenic risk. Overall, this study provides adequate evidence to support the safety of this by-product for its potential use in functional foods.

Identifying market power of retailers and processors: Evidence from coffee supply chain in India

This paper deals with the dynamics of market power with processors and retailers in the coffee supply chain in India. We develop an imperfect competition model that allows for the potential oligopoly and/or oligopsony power of retailers and processors with respect to adjacent stakeholders in the supply chain. We also empirically determine the presence/absence of market power among processors and retailers in the coffee supply chain in India. This paper highlights the existence of market power with processors in the coffee industry that plays an important role in the imperfect price transmission and should not be ignored when developing regulatory policies.

Some Insights Into Effective Demand Planning

Demand planning enables organizations to manage their and their partner supply chain processes. We introduce and evaluate the demand planning process, including the aspects of goal formulation, forecasting techniques, information source, forecasting and decision making, and synchronizing supply with demand. We, especially, show its applicability and evaluation in a Vietnamese coffee supply chain context, which also provides insights for general supply chain and organizational practices, especially in emerging economies. We find that the demand planning relates strongly to cost and delivery performance. There is greater evidence that demand planning is not only valuable but has multiple important dimensions that managers and organizations need to be concerned within its implementation. We provide some practical insights into the design of demand planning as well as issues that organizations may face.

Valorization of coffee industry wastes: Comprehensive physicochemical characterization of coffee silverskin and multipurpose recycling applications

Every year, the coffee supply chain produces tons of waste materials from the processing of the coffee bean. Coffee silverskin (CS) is the only waste product from the coffee bean roasting phases but as roasting is a key step in obtaining the coffee beverage, there are tons of CS collected and thrown away by coffee roasting industries. This study is based on the characterization of this integument, with a view to its use in nutritional, nutraceutical and industrial fields. From the results obtained, silverskin can be used in the food sector for its nutritional profile with a good amount of protein (18.9%) and total dietary fiber (34.7%) andits low-fat content (3.0%). Food safety was also determined by evaluating the low levels of contaminants such as ochratoxin A (OTA) and acrylamide (AA), with values < 0.1 mg/kg and <0.02 mg/kg respectively. Low concentrations of heavy metals and polycyclic aromatic hydrocarbons (PAHs) completed the safety-related overview in terms of CS contamination. For the nutraceutical aspect, an in-silico analysis of the peptide fraction was proper to evaluate the presence of angiotensin-converting enzyme (ACE) inhibitory peptides, antioxidants and dipeptidyl peptidase (DPP) IV inhibitors with promising uses for the treatment of diabetes and its side effects. Finally, through morphological-structural characterization of CS, the main constituents such as lignin, cellulose and hemicellulose were identified spectrally by Fourier transform infrared spectroscopy (FT-IR) and solid-state CP/MAS 13C NMR spectroscopy. The CS thermostability was monitored by thermogravimetric (TG) analysis, and the tegument surface was evaluated by Scanning Electron Microscopy (SEM) and volumetric nitrogen adsorption analysis. This information provides a broader view of the possible uses of CS as a filler for biocomposite materials. Therefore, from the perspective of recovering waste materials from food supply chains, coffee silverskin could be a good product to focus on.

ANALISIS KINERJA RANTAI PASOK (SUPPLY CHAIN) KOPI ROBUSTA DI KECAMATAN ULUBELU, KABUPATEN TANGGAMUS

Coffee was a commodity that had good prospects for commerce. The high demand for coffee must be accompanied by a good supply chain in order for the trade to run effectively. The study aims to know the flow of products, information streams, and financial streams, as well as the performance of robusta coffee supply chain in Ulubelu district of Tanggamus regency. This site has been purposely chosen (purpossive) on the basis of ulubelu district's main producer of robusta coffee in the Tanggamus regency. The type of data collected is the primary data obtained through the methods of interviews and secondary data obtained from relevant libraries or literature. In addition, PT Ulubelu Cofco Abadi, the director for production and acquisition of goods, the Karya Taruna Gapoktan, and the research institute. Data is analyzed using a descriptive analysis to describe the flow of products, financial streams, and information streams. Supply Chain Operation Reference (SCOR) is used to account for the performance of the perpetual supply chain in PT Ulubelu Cofco Abadi that was agroindustry of robusta coffee. Research shows that three streams in robusta coffee supply chain in Ulubelu district of Tanggamus regency has not been optimal. The flow of information that goes on in the supply chain regarding daily price changes. The flow of products flows from farmers to middlemen, gatherers, traders, exporters/powdered coffee industry in the form of ose or green bean. A cash flow between marketing agencies flows from downstream to upstream and smoothly. The results of the robusta coffee supply chain performance in PT Ulubelu Cofco Abadi immortality were 82.31% of those included in the good classes.

Coffee supply chain planning under climate change

ABSTRACT The growing demand but uncertain supply makes the sustainability of the coffee industry a shared concern for all participants along the coffee supply chain. This study proposed a decision-making model that comprises the cultivation management, including shade management and annual agriculture management, and the supply chain logistics. A two-stage stochastic program is presented and used within a rolling horizon scheme that periodically updates input data information to deal with uncertainty associated with future climate scenarios. The program minimizes the total expected cost of the entire supply chain of arabica coffee. The study applied the model to the real case study of arabica coffee bean supply to the U.S. market, trying to answer whether arabica coffee supply can meet the U.S. demand from 2022 to 2050 and how to best mitigate any shortage through corporate-farmer partnerships. The results show that the coffee supply will have a 3% shortage in the future; medium-level shade management and more irrigation and fertilization are possible mitigation strategies. These results demonstrate the need for all participants to adopt suitable technologies for the sustainability of global coffee supply chains together.

Arabica coffee agroindustry supply chain strategy in Bandung regency

Coffee is one of the essential commodities that contribute to the economy in Indonesia. One of the best coffees with export quality is arabica java preanger coffee from Bandung district. Although a contributor to Indonesia’s economy, some previous literature describes the risks in the sustainable supply chain of coffee in Indonesia, especially Arabica Java coffee preanger. This study will describe a situational analysis in the Arabica Java Preanger coffee supply chain in Bandung Regency using a soft system methodology (SSM) and analytical hierarchy process (AHP) approach. From the results of the SSM research, it was found that there were five activities or strategies to achieve a sustainable Java Preanger Arabica coffee supply chain. Namely human resource training, financing modeling, monitoring the selling price of coffee beans, increasing productivity, and improving infrastructure. Furthermore, the results of the calculation of the AHP obtained a priority strategy, namely financing modeling.

ПОТЕНЦІАЛ ВНУТРІШНЬОФІРМОВОЇ ІНТЕГРАЦІЇ В СИСТЕМІ УПРАВЛІННЯ ПІДПРИЄМСТВОМ (НА ПРИКЛАДІ КАВ’ЯРНІ)

In the conditions of global challenges, the mechanisms of integration of enterprise activities in various forms create additional opportunities for entering international markets. Today, participants in integration processes are mostly large companies, as they have more financial, organizational and competent opportunities for this, compared to small businesses. However, integration can also be used by small businesses (for example, coffee shops) to increase the scale and influence of the enterprise in the industry, which strengthens the competitive advantages of the firm in the long term. The article examines the coffee supply chain, in which all technological processes are conditionally divided into four key groups: cultivation and primary processing of coffee, international distribution, roasting and sale, and final consumption. It has been established that one of the reasons for the volatility of coffee prices is not only climatic changes but also the high costs associated with growing its commercial varieties. This situation is largely caused by too many different middlemen in the coffee supply chain. The components of coffee supply chains are highlighted from the point of view of a typical scenario, fair trade and direct trade. The advantages of fair and direct trade in the use of coffee business enterprises have been determined. The objective reasons for the internal backward integration of the activities of coffee shops are substantiated, which are a significant reduction in the cost of the finished product, comprehensive quality control, and wider opportunities for the implementation of the principles of corporate social responsibility. The article proposes a model for increasing the level of competitiveness of coffee shops through internal backward integration. When using the proposed model, coffee shops will be able to strengthen their competitive positions, since it involves a comprehensive approach to managing competitiveness through the improvement of its key components - economic (reduction of the cost of the basic assortment position), quality (control of product quality at most stages of its creation) and social (implementation principles of social responsibility in the course of integrated activities).

Blockchain for Ecologically Embedded Coffee Supply Chains

Background: This research aims to identify how blockchain technology could support the ecological embeddedness of the coffee supply chain. Ecological embeddedness is a subset of the circular economy (CE) that demands legitimacy through design changes to product, production and/or packaging for benefits to economic actors and the environment. This is in contrast with legitimacy as a public relations exercise. Blockchain is a digital transformation technology that is not fully conceptualized with respect to supply chain implementation and the related strategy formulation, particularly in the context of sustainability. Furthermore, the integration of consumers into the CE remains not well understood or researched, with the main focus of CE being the cycling of resources. Methods: This research employs a qualitative case study methodology of the first coffee business in the USA to use blockchain technology as an exemplar. Gap analysis is then applied to identify how blockchain could be used to advance from the current state to a more sustainable one. Results: Findings indicate that the implementation of blockchain is not ecologically embedded in the example studied. Conclusions: The extension of blockchain technology to consider the by-products of production and valorizable waste throughout the supply chain as assets would support ecologically embedded CE for coffee.

Event-Based Supply Chain Network Modeling: Blockchain for Good Coffee

Blockchain and distributed ledger technology (BC/DLT) provides distributed databases with decentralized governance, tamper-proof recording, high availability and non-copyable digital assets, which have made it a natural technological basis for supply chain management. In this paper, we introduce REALISTIC, a novel event-based modeling framework for supply chain networks (SCNs) that includes production processes. It extends McCarty’s Resources-Events-Agents (REA) accounting model with secure transformations, which, across the entire SCN, guarantee that certified output resources cannot be digitally produced ex nihilo, but require certified input resources of at least the same amount as what is produced. This generalizes the no-double-spend guarantee of current BC/DLT to (digital twins of) physical resources and their production. Authenticated human or robotic Internet of Things (IoT) actors digitally sign and cryptographically commit to the veracity of real-world events on an immutable database, without having to take responsibility for their aggregate consequences. User-specifiable interpretations, corresponding to queries and analytical functions in database systems, provide auditable aggregate information computed from recorded events across the entire SCN. This includes fine-grained and trustworthy tracing of final products through multiple stages of production processes, semi-finished products, quality certifications and transportation all the way back to their raw materials. We present a case study for an end-to-end coffee supply chain that tracks fine-grained and detailed information from a farmer’s coffee cherries to retail coffee bags, involving all its actors. Our model handles product provenance; auditable sustainability, quality and trade information; production processes from parchment via green to roasted coffee; product quality tests; farmer certifications; and transportation across the entire coffee supply chain. It is based on field work involving farmers, cooperatives, processors, traders, importers, and a major roasting company stretching from Colombia to Scandinavia. Its REALISTIC-based modeling is the foundation for the design of our prototype implementation, which includes Ethereum blockchain code, RDBMS-based server code and a web app client. Their source code is publicly available on GitHub.

Traceability for sustainability: seeking legitimacy in the coffee supply chain

PurposeThe adoption of traceability systems (TS) and sustainability programs responds to different objectives among which the companies need to be considered legitimate; hence, this study aims, first, to identify what is the relationship between traceability and sustainability in the food supply chain (SC) and, second, to characterize the legitimacy-seeking purposes, i.e. moral, cogniti60ve or pragmatic-driving companies to implement TS along with sustainability initiatives.Design/methodology/approachThis study analyses the coffee SC, a globally dispersed commodity chain, where traceability initiatives usually respond to mandatory and voluntary quality standards and certifications of origin. The study involves nine cases at different stages of the coffee SC.FindingsThis study provides a taxonomy of the TS applied in the coffee SC. In addition, three main approaches to traceability for sustainability are found in the coffee SC: synergistic, complementary or disconnected. Findings also reveal how traceability responds to different legitimacy-seeking objectives while triggering or complementing sustainability practices. Five research propositions and related directions for further investigations are elaborated from the results of our study.Originality/valueThis study explores a rather limited studied area, investigating how companies in a food commodity chain address traceability and sustainability together while seeking legitimacy in the market. Moreover, the study is grounded on legitimacy theory, thus adding robustness to the analysis.

A dynamic multi-objective green supply chain network design for perishable products in uncertain environments, the coffee industry case study

ABSTRACT One of the most critical issues for any production organization to compete in the current competitive business environment is supply chain network design (SCND). Besides, by increasing greenhouse gas emissions, various organizations have imposed many restrictions to prevent the overproduction of these gases in their production planning. This study develops a mathematical model for the location-allocation-inventory problem based on a real case study to design a three-echelon coffee supply chain network. The primary purpose of the problem is to minimize supply chain costs. Minimizing the CO2 emission was also considered to address the increasing eco-friendly challenges. The problem includes various strategic and tactical decisions, such as the number and capacity of manufacturing centers (MCs) and distribution centers (DCs) to be established, how to allocate factories to distribution centers and DCs to customers, material flow throughout the system, and the number of products stored in warehouses. It should be noted the problem's parameters are considered fuzzy to get closer to reality. Finally, by performing several sensitivity analyses, valuable managerial insights were obtained. Applying the developed model to the case study of a coffee company assisted managers in making optimal strategic decisions to establish new MCs and DCs, and reduce CO2 emissions.

SUSTAINABILITY IN BARISTA SKILLS; MONITORING AND EVALUATION FROM BARISTA’S KNOWLEDGE IN SPECIALTY COFFEE AT THE COFFEE LAB DUBAI 2021

Today’s number of coffee shops is inseparable from the third-wave in the coffee supply chain, especially the recent growth of specialty coffee. Sustainability is the main goal for all sectors, including the standardised solder of the supply chain in the coffee shop. Numerous Baristas do not yet understand the importance of sustainability in their coffee bar and management realm. To raise sustainability so that it is aligned with skills and behaviour in ethical business, it is essential to apply sustainable education in the Barista concept of thinking, understand their philosophy as coffee brewers and connect all stakeholders in the coffee supply chain to consumers who need this information. This issue is a sustainability challenge for Barista to be strengthened by knowledge. The continuation of a blended curriculum for professional coffee through the coffee skills program of the Specialty Coffee Association with the “Introduction to Coffee” module will eliminate the barrier of deficiencies for Baristas. It makes Barista’s existence an agent of change in bringing sustainability to the coffee supply chain. This curriculum was delivered along with additional coaching, assessment, and interview at the end of the activity to measure material for Barista knowledge. The current object for this study was Barista at The Coffee Lab Dubai, the United Arab Emirates.

The Influence of Traceability of Kerinci Coffee Agricultural Products on Agricultural Value Added in Jambi Province

Purpose: The purpose of this study is to determine the effect of the supply chain of Kerinci coffee agricultural products on the value added of the agricultural economy of Jambi Province.&#x0D; Design/methodology/approach: To improve coffee supply chain performance, innovation is needed through a value added approach between business actors using a transparency approach and supply chain management.&#x0D; Findings: The trend of coffee commodity demand continues to increase with an average value of coffee consumption needs per year of 1.2 kg per capita / year in 2019, even Indonesia is the 3rd largest coffee producer in the world.&#x0D; Research limitations/implications: Along with the increase in people's income, the price factor is no longer the main thing to consider the decision to consume an item.&#x0D; Originality/value: This paper is original&#x0D; Paper type: Research Paper

Privacy preserving transparent supply chain management through Hyperledger Fabric

The revolution of blockchain technology started in the form of a cryptocurrency called Bitcoin. In recent years, this decentralized technology has attained worldwide adoption and growth in multiple sectors, including e-governance, e-commerce, and asset management. Having disrupted these sectors, the choice of blockchain technology to solve real-world problems concerning supply chain seems to be an innovative strategy. In this paper, an attempt is made to analyze blockchain's ability to improve the standards of supply chain management. This paper includes a methodology to implement the suggested idea using a permissioned blockchain platform—Hyperledger Fabric. For the paper's scope, the existing supply chain problems, such as data integrity, provenance transparency, privacy, and security, are given emphasis more specifically in the context of the coffee supply chain industry, while also concurrently attempting to generalize the solution to manage other supply chain activities effectively. Thus, the final objective of this research is to identify whether permissioned blockchain platforms could help stakeholders in the supply chain industry engage in a less-corruptible alternative to traditional web technology and whether they could enable a more positively nuanced blockchain system that draws the best balance between traditional web technology and a public blockchain, including privacy protection and security.