Preanger was the first coffee from Indonesia exported to Netherland in 1711, known as a cup of Java in international market, and especially in Europe. Identifying the coffee chain processing phase from coffee crop into green bean and coffee as beverage involves many stages, starts with cultivation, harvest, post harvest and processing stage. All these process are key information for farmer to increase their product quality and market access to improve welfare. KEY WORDS Coffee, value chain, West Java, Java preanger. Coffee is one of the leading commodities that have potential to increase foreign exchange for Indonesia. The superiority and specialty coffee from Indonesia makes Indonesia known as main producer of coffee in the world specialty coffee, which is a coffee that has a characteristic of aroma and uniqueness taste. Specialty coffee from Indonesia already has a large market share in the United States and Europe due to its distinct flavour and aroma compared to other coffees. In addition, specialty coffee has a high competitiveness, indicated by the increasing demand for coffee in the international market. This makes specialty coffee Indonesia become a main commodity for export Based on data from BPS The value and volume of coffee exports in Indonesia are as follows: Table 1 – Volume and Food On Board price of Coffee export from Indonesia 2010-2014 Year Volume (Ton) FOB thousand US $ 2010 433.595 814.331 2011 346.493 1.036.671 2012 448.591 1.249.520 2013 534.203 1.174.029 2014 382.750 1.030.716 Source: Statistical Center Body of Indonesia, 2014. Table 1 above explains that Indonesia is experiencing a decrease in the quantity of coffee export volume in 2014 and the volume of coffee exports tends to fluctuate from year to year. In 2013 Indonesia has the highest export volume value for FOB (food on board in 2012 due to higher coffee prices. Fluctuating coffee export conditions can be attributed by the condition of the area, production and productivity of coffee in Indonesia shows in Table 2. Table 2 – Area, Production and Productivity of Coffee in Indonesia Year 2011-2015 Source: Directorate General of Plantation, 2015 2011 2012 2013 2014 2015 Luas Areal (Ha) 1.233.699 1.235.289 1.241.836 1.230.495 1.233.227 Produksi (Ton) 638.647 691.163 675.881 644.592 665.256 Produktivitas (Kg/Ha) 702 745 739 716 721 Uraian Tahun
RJOAS, 1(73), January 2018 164 Value chain analysis was a method to series of activities undertaken to produce a product ranging from conceptual to marketing activities, each of which activities that added value to the final product ( ACIAR, 2012). Measurement of the value chain to be important in explaining activities ranging from the supply of raw materials, processing, to distribution to the consumer. Agro-industrial processing in this case have an important role to increase the value added of agricultural products into a final product that is ready for trading. This Concept analysis has been used to study political economy framework and international trade known as Global Value Chain (Gereffi, 1994; Kaplinsky, 2000, 2004).
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