Increase access to markets

Oct 13, 2025 by wbrum.org 50 views

Introduction

Tanjung Beringin Village in Sumbul District, Dairi Regency, is one of the renowned Arabica coffee producing areas in North Sumatra. This coffee commodity is in high demand in the world export market, where only 2% of the total production is consumed domestically. North Sumatra Arabica coffee contributes 15% of the total exports of national Arabica coffee, making it a highly valuable product. With a higher selling price than Robusta coffee, Arabica coffee has a significant potential to increase farmers' income.

The high selling value of Arabica coffee has the potential to increase the income gap and affect the poverty level of coffee farmers in its producing regions. This study aims to analyze variations in the source of income of Arabica coffee farmers, the effect of coffee farming on total income, as well as to measure the level of income inequality and poverty of farmers in the study area.

Methodology

In this study, Tanjung Beringin Village was chosen as the location of the study using the Two Stage Cluster Sampling method. Sampling withdrawals are carried out by the simple random sampling method to ensure good representatives. Data were analyzed using the revenue analysis approach, Gini Ratio as an indicator of inequality, as well as poverty criteria set by the World Bank and the definition formulated by Sajogyo and BPS.

Results

The results showed the diversity of sources of income among Arabica coffee farmers, where the biggest contribution came from the farm of Arabica coffee itself, reaching 65.68% of the total income of farmers. In terms of income inequality, the gini ratio obtained by 0.36 shows that the level of income inequality is in the middle category. However, when referring to the World Bank criteria, this level of inequality is in the low category, which indicates that even though there is inequality, the income situation is relatively equitable among farmers.

As for the proportion of Arabica coffee farmers who are classified as poor, according to the Sajogyo method, recorded at 21.43%, while according to BPS measurements, this figure is at 16.67%. This finding shows that although the income from coffee farming is quite promising, the challenges in poverty alleviation are still present, and it is important to develop policies that support the welfare of coffee farmers.

Discussion

The results of this study indicate that Arabica coffee has the potential to increase farmers' income, but strategic steps need to be taken to reduce poverty and ensure more equitable distribution of income among Arabica coffee farmers. A more intensive effort in increasing access to markets, education, and technical support in farming can help farmers in facing existing challenges and maximizing the benefits of this valuable commodity.

The diversity of sources of income among Arabica coffee farmers is a positive sign, indicating that farmers have multiple income streams. However, the biggest contribution came from the farm of Arabica coffee itself, which may indicate that farmers are heavily reliant on this single source of income. This highlights the need for farmers to diversify their income streams and reduce their reliance on a single source of income.

The level of income inequality in the study area is in the middle category, according to the Gini ratio. However, when referring to the World Bank criteria, this level of inequality is in the low category, indicating that even though there is inequality, the income situation is relatively equitable among farmers. This finding suggests that the income distribution among Arabica coffee farmers is relatively fair, but there is still room for improvement.

The proportion of Arabica coffee farmers who are classified as poor is relatively high, according to both the Sajogyo method and BPS measurements. This finding highlights the challenges in poverty alleviation among Arabica coffee farmers and the need for policies that support the welfare of these farmers.

Conclusion

In conclusion, this study highlights the potential of Arabica coffee to increase farmers' income, but also emphasizes the need for strategic steps to reduce poverty and ensure more equitable distribution of income among Arabica coffee farmers. A more intensive effort in increasing access to markets, education, and technical support in farming can help farmers in facing existing challenges and maximizing the benefits of this valuable commodity.

The findings of this study have implications for policymakers, farmers, and other stakeholders involved in the coffee industry. Policymakers can use the findings of this study to develop policies that support the welfare of Arabica coffee farmers, such as increasing access to markets, education, and technical support in farming. Farmers can use the findings of this study to diversify their income streams and reduce their reliance on a single source of income.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase access to markets: Policymakers and stakeholders can work together to increase access to markets for Arabica coffee farmers, enabling them to sell their products at a higher price and increase their income.
Improve education and technical support: Policymakers and stakeholders can work together to improve education and technical support in farming, enabling farmers to improve their farming practices and increase their income.
Diversify income streams: Farmers can diversify their income streams by engaging in other economic activities, such as livestock farming or agro-tourism, to reduce their reliance on a single source of income.
Develop policies to support welfare of farmers: Policymakers can develop policies that support the welfare of Arabica coffee farmers, such as providing subsidies or other forms of support to help them overcome challenges and maximize the benefits of this valuable commodity.

By implementing these recommendations, policymakers, farmers, and other stakeholders can work together to reduce poverty and ensure more equitable distribution of income among Arabica coffee farmers, ultimately contributing to the sustainable development of the coffee industry in North Sumatra.

Q: What is the significance of Tanjung Beringin Village in the production of Arabica coffee?

A: Tanjung Beringin Village in Sumbul District, Dairi Regency, is one of the renowned Arabica coffee producing areas in North Sumatra. This coffee commodity is in high demand in the world export market, where only 2% of the total production is consumed domestically.

Q: What is the contribution of North Sumatra Arabica coffee to the total exports of national Arabica coffee?

A: North Sumatra Arabica coffee contributes 15% of the total exports of national Arabica coffee, making it a highly valuable product.

Q: What is the potential of Arabica coffee to increase farmers' income?

A: With a higher selling price than Robusta coffee, Arabica coffee has a significant potential to increase farmers' income.

Q: What is the methodology used in this study?

A: In this study, Tanjung Beringin Village was chosen as the location of the study using the Two Stage Cluster Sampling method. Sampling withdrawals are carried out by the simple random sampling method to ensure good representatives.

Q: What are the results of the study in terms of income inequality?

A: The gini ratio obtained by 0.36 shows that the level of income inequality is in the middle category. However, when referring to the World Bank criteria, this level of inequality is in the low category, indicating that even though there is inequality, the income situation is relatively equitable among farmers.

Q: What is the proportion of Arabica coffee farmers who are classified as poor?

A: According to the Sajogyo method, the proportion of Arabica coffee farmers who are classified as poor is 21.43%, while according to BPS measurements, this figure is at 16.67%.

Q: What are the implications of the study for policymakers, farmers, and other stakeholders?

A: The findings of this study have implications for policymakers, farmers, and other stakeholders involved in the coffee industry. Policymakers can use the findings of this study to develop policies that support the welfare of Arabica coffee farmers, such as increasing access to markets, education, and technical support in farming.

Q: What are the recommendations of the study?

A: Based on the findings of this study, the following recommendations are made:

Increase access to markets: Policymakers and stakeholders can work together to increase access to markets for Arabica coffee farmers, enabling them to sell their products at a higher price and increase their income.
Improve education and technical support: Policymakers and stakeholders can work together to improve education and technical support in farming, enabling farmers to improve their farming practices and increase their income.
Diversify income streams: Farmers can diversify their income streams by engaging in other economic activities, such as livestock farming or agro-tourism, to reduce their reliance on a single source of income.
Develop policies to support welfare of farmers: Policymakers can develop policies that support the welfare of Arabica coffee farmers, such as providing subsidies or other forms of support to help them overcome challenges and maximize the benefits of this valuable commodity.

Q: What are the benefits of implementing the recommendations of the study?

A: By implementing these recommendations, policymakers, farmers, and other stakeholders can work together to reduce poverty and ensure more equitable distribution of income among Arabica coffee farmers, ultimately contributing to the sustainable development of the coffee industry in North Sumatra.