As the specialty coffee sector has been developing rapidly in the past few years, tighter relations have developed between downstream industry players (roasters) and coffee farmers.
Indonesia produces around 5.5% of total world coffee production, but because of Indonesia’s highly diversified economy, the value of coffee exports is only around 0.13% of GDP.
In the past, farmers planted, harvested and processed arabica coffee beans, and sold these to collectors. The collectors would then deliver the coffee beans to processing factories, before the green beans were either exported or sold to domestic roasters.
Nowadays, roasters are driven to source coffee beans directly from farmers. They are also trying to improve the welfare of these mostly poor farming families.
This creates what we call “relationship coffee”.