Just published in The Conversation Indonesia - '9 myths about coffee farmers and development' from our research across Indonesia on the livelihood implications of different value chain models in coffee. Long thread 1/n
https://theconversation.com/sembilan-mitos-tentang-pengembangan-petani-kopi-khas-144879 @ConversationIDN @ADwiartama

This article focuses on the phenomenon of 'relationship coffee', where roasters increasingly engage directly with farmers with a commitment to improving quality, price transparency and farmer welfare. This model is promoted as 'pro-development' by roasters & NGOs 2/n

Development interventions to establish relationship coffee models are supported by the Indonesian state and donors. Interventions are done with good intentions, yet our research in Bali, Sumatra, Java, Sulawesi revealed underwhelming livelihood outcomes for farmers. Why? 3/n

1. While roasters/NGOs often view livelihoods through the prism of coffee, very few farmers actually specialize in coffee production. Increasing coffee income therefore involves trade-offs with other livelihood activities that may actually be more income-generating. 4/n

2. The assumed link between increasing quality and higher incomes does not always hold. Improving quality can also increase costs and risks for farmers. These additional costs are often not worth the selling price of coffee. 5/n

3. The view that collectors or middlemen are exploitative is not always correct. 'Middlemen' also often act as the most efficient logistics providers and quality controllers. These 'traditional' market structures are often based in deeply ingrained social relationships. 6/n

4. 'Upgrading' farmers to perform further processing tasks in the value chain often does not increase the value capture of farmers, and involve labour and time trade-offs. Many farmers simply prefer to just pick and sell red cherries. 7/n

5. Access to capital / credit is not a cure-all. Farmers will not often choose to invest in coffee even when they have access to credit. Households in rural Indonesia often view agriculture as part of diversifying their livelihoods to reduce risk rather than as a “business”. 8/n

6. The idea of 'terroir' of coffee is difficult to leverage for development outcomes. Certain regions have a strong reputation for producing high quality coffee, however quality is primarily determined by the post-harvest processing system. 9/n

7. Cooperatives often can't improve the bargaining power of farmers as expected by development actors. Coffee prices are primarily determined by global commodity markets. Without extensive institutional support it is difficult for farmer coops to challenge this. 10/n

8. Relationship models do not always result in higher quality coffee. Many specialty roasters are small businesses with limited capacity to shape local production systems, compared to larger lead firms who can recruit supply chain specialists. 11/n

9. The relationship itself is often unsustainable. Market pressures and inevitable production uncertainties can result in the breakdown of relations. This is because roasters are ultimately driven by the logic of seeking profit in a competitive environment. 12/n

What is the solution? If roasters are serious about rural development, they need to rethink prior assumptions. Adopting a livelihoods perspective is a great start. This means recognizing that the best way out of poverty for some coffee farmers may not be in coffee at all. 13/n

For more on relationship coffees and rural development see our 2018 article in @WorldDevJournal https://doi.org/10.1016/j.worlddev.2018.05.020. 14/14