The Specialty Coffee Trends Post-Pandemic; Study through Coffee Value Chain in Garut

Authors: Kurniawan Arif Maspul & Ari Rahmana Sidiq

Corresponding Author: Kurniawan Arif Maspul, kurniawanarifmaspul@gmail.com

Citation: Maspul, K.A., Sidiq, A.R. (2021). The Specialty Coffee Trends Post-Pandemic; Study through Coffee Value Chain in Garut. Academia Letters, Article 3592. https://doi.org/10.20935/AL3592

Abstract

This paper describes the development of specialty coffee during the pandemic and post-pandemic in Garut, Indonesia. Where Garut in the last period is one of the largest coffee-producing cities in Indonesia, even an exporter of green coffee from the colonial era. The study was conducted qualitatively and takes snowball research sampling using observation and interview methods through several stakeholders in Garut, from the supply chain to coffee entrepreneurs (Ghaljaie et al., 2017). Several discussions from stakeholders have tried to bring sustainability in the coffee value chain in Garut; the result is that social and environmental economic growth is helped through digitising coffee sales and online sales through several service providers in Garut (Anggreni et al., 2021; Li & Sakamoto, 2021).

Garut and the Land of Coffee; an Introduction

Garut is one of the coffee producers in Indonesia, with a population of 2.6 million people spread over 42 districts. Besides being famous for its tourism and culture in Indonesia, Garut is a producer of traditional products from bamboo and leather crafts, batik and silk, to traditional foods such as Garut, lunkhead, and coffee (Rizal, 2021; Susanti et al., 2018). Various areas in Garut are also productive lands that produce the best quality Arabica and Robusta coffee in Indonesia, such as Buhun, Galigo, Java Garut and Preanger, Samarang, Gulali, Papandayan, Cikuray, Sukatani, Pasirwangi, and others. The majority of coffee grown in Garut is a legacy from the Dutch East Indies in the colonial period from 1700 to 1870; it became one of the coffee sources needs in Europe in the past under the VOC. Nowadays, it is still the largest coffee exporter in Indonesia. Besides being known as Preanger coffee, Garut coffee is grown at an altitude of 1300 meters above sea level, consisting of Arabica and Robusta (Ikhwana, 2018; Rivalto et al., 2020; Rosmaladewi et al., 2016).

Currently, Garut coffee maintains to grow and is managed by Perum Perhutani KPH Garut, and the land continues to grow to date, accounting for 2143 hectares, making Garut a coffee producer in demand with different characteristics (Rosmaladewi et al., 2019; Supriadi & Pranowo, 2015). Garut coffee itself is in the market by the global community of coffee consumers from locals who appreciate this legacy of colonialism; this can be seen by the many coffee shops scattered in Garut that serve coffee in Indonesia archipelagos, especially coffee from Garut coffee production.

Meanwhile, the addition of a worldwide pandemic has had a negative impact on the supply chain, where there has been a decline rather than sales of green coffee from upstream to downstream sales in coffee shops (Maspul, 2020). This is not only a global issue but also a challenge in Garut. However, the need for caffeine from Garut residents and local residents is crucial, where coffee entrepreneurs are the solution in helping their needs. This is complained about by roasters and baristas who work in the local coffee industry; what steps can make the coffee industry in Garut remain resilient?

Discussion Through Coffee Value Chain in Garut

In general, green beans that are the source of the supply chain in the coffee industry are taken at the local farms; coffee roasters take directly from farmers from Papandayan, Talaga Bodas, Cibugel etc. This is the actual consumption where what is used in sales production is still with a small capacity at 200kg per month. This is considering the price of foreign coffee, which is regarded as more expensive, but it is also not possible with local green coffee with high Arabica quality because specialty coffee will generally use +80 grade from green coffee. Then in Garut itself currently has a challenge in enjoying specialty coffee, with the declining sales to direct roasted coffee, thus making ready-to-made coffee with other additional mixtures such as sweet coffee become popular. Pure milk and sweetened condensed milk can be the favourites of Garut residents, and you can say sweet milk coffee or Spanish latte is increasingly becoming the first choice.

Coffee roasting production itself is varied considering the demand from the market, which uses local coffee to make milk coffee with a darker roast. While specialty coffee in general, we prefer to explore the taste with light to medium roasts, the reduced demand from this type of roasting makes light/medium roasts attractive to only a few. On the other hand, coffee roasters make roasts darker by up to 70% of colour to meet the needs of coffee shops and the coffee market.

Results and Recommendation

Based on observations for the past 3 years, according to research by the coffee community in Garut, more than 200 coffee shops exist. Since the pandemic, around 20% have closed, and those who can still survive for coffee sales are still approximately 70%. The number of roasteries in Garut with good business stability from the last few years has increased by almost 50% from 7 roasteries in 2016 and now to 16 roasteries in 2021. They contribute to meeting the needs of the excellent coffee market in Garut. in general and in Indonesia. The roasting machines they use are local Indonesian machines, Noar coffee and Berto; there are also other types of machines without brands that are self-assembled or made by the local coffee community. Apart from that, some roasteries use external roasting machines such as Uncle John and Probat.

Online sales are growing more rapidly in the Garut area itself and outside Garut. This is helped by using online delivery services such as Grab and Go-Food, which for the last 7 years have become a massive national service provider in the food and beverages sector (Foster, 2021; Lo et al., 2016). Others also use official online sites to sell green coffee and roasted coffee, such as Shopee, Bukalapak and Tokopedia (Akbar, 2018; Baihaqi et al., 2019). Products sold using Grab or Go-Food are generally heavy drinks and food or snacks with estimated delivery of a maximum of 20 minutes for local. It is a commonplace that when Grab or Go-Food is ordered through a business, it goes to the delivery person closest to the place of purchase and the number of drivers themselves is very large. As for the payment in general by transfer with disbursement the day before the coffee application.

Meanwhile, for their own online sales, primarily local and foreign tourists come to visit Garut. In addition, several Garut local residents use online services more than buying directly. Generally, Garut residents themselves prefer to buy directly to the place even though it is risky during the pandemic, but with local health protocols that apply to always be obeyed. This is commonplace because it prioritises reducing shipping costs, sometimes the desired product is unavailable, or sometimes menu changes or sales cancel from the seller or buyer. As for the sales strategy in general, there were more declines during the pandemic than before because store opening hours were limited by government regulations related to the semi-lockdown (PPKM) to keep the coronavirus from spreading. So it usually opens at 07 AM – 00 AM to 08 AM -08 PM.

Furthermore, as for the price of selling online itself during the pandemic, there was no significant increase, only about 5% from the days before the pandemic. However, some coffee shops have even increased sales during the pandemic with the strategy of opening franchises in brands outside of Garut; seeing more demand for coffee outside the Garut area itself and related to the need for instant coffee; such as matcha latte, taro latte, red velvet latte and various other instant sweet koi drinks. And this is more in demand by the people of Garut by looking more at the need for coffee at a super cheap purchase price.

It is making sustainability in the society, economy and environment within the coffee industry and community, specifically in Garut and in Indonesia in general. Filling caffeine needs for Garut residents is still a crucial thing where this is a sustainable demand, both during the pandemic and outside the pandemic. The decline in the coffee market will occur with the massive impact of the spread of Covid-19 anywhere. However, with government support in strengthening the middle economic sector in Indonesia, it still reinforces business resilience in any industry, including the coffee industry in Garut, where there is a cycle of circumrotation from coffee realisation from producers to consumers.

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