Value Chain Analysis and Economic Valuation of the Coffee Industry in the Gayo Highlands
DOI:
https://doi.org/10.62710/495qnx27Keywords:
Arabica coffee, value chain, economic valuation, NPV, IRR, Payback Period, Baburrayyan Cooperative.Abstract
The Arabica coffee industry in the Gayo Highlands is a key sector that significantly contributes to regional and national economies. Despite its high-quality products and strong market demand, the industry continues to face challenges related to production efficiency, quality consistency, and limited economic feasibility assessments at various value chain stages. These issues result in low value-added benefits for local farmers and entrepreneurs. This study aims to analyze the value chain and evaluate the economic valuation of the Arabica coffee industry, using the Baitul Qiradh Baburrayyan Cooperative in Central Aceh as a case study. The methodology includes analyzing stakeholder roles along the value chain, integrating technology and quality control systems, and conducting financial evaluations using Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PP) methods. The study results show that modern technology and quality control systems impact the value chain in terms of production efficiency and product quality. Financially, the project is feasible, with an NPV of IDR 534,912,650, an IRR of 11.25%, and a payback period of 2.49 years. Sensitivity analysis and intervention scenarios also reveal that enhancing quality and market access are the most effective strategies to increase profitability. In conclusion, a value chain and economic valuation-based approach enhances the competitiveness of the Gayo Arabica coffee industry and provides a strategic foundation for cooperatives and farmers to make efficiency- and sustainability-oriented decisions.
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