Value-Added Analysis of Robusta Coffee Processing Using the Hayami Method: Evidence from a Small-Scale Agroindustry in Indonesia

Abstract

This study analyzes the value added generated from processing Robusta coffee beans into ground coffee at Air Lanang Coffee, a micro, small, and medium enterprise (MSME) located in Rejang Lebong Regency, Indonesia. A quantitative descriptive case study approach was applied using primary data collected through direct interviews and field observations, supported by secondary data from relevant documents. Value added was calculated using the Hayami method, which measures conversion factors, value added, value-added ratios, labor income, and profit per kilogram of output. The results show that processing 1,000 kg of Robusta coffee beans produces 780 kg of ground coffee, resulting in a conversion factor of 0.78. The value added generated reaches IDR 45,352.13 per kilogram, with a value-added ratio of 41.53 percent, indicating a high value-added category. Labor income accounts for 16.1 percent of the value added, while net profit reaches IDR 38,052.13 per kilogram or 34.85 percent of the output value. These findings indicate that ground coffee processing at the MSME level is economically viable and provides substantial added value. Improving processing efficiency, cost control, and market access can further strengthen the competitiveness and long-term sustainability of small-scale coffee agroindustry.