Analysis of Factors Affecting Revenue

Oct 13, 2025 by thesweetdesigns.com 119 views

Analysis of Added Value and Factors that Influence the Income of Arabica Coffee Farming in Payung District, Karo Regency

Introduction

The Arabica coffee industry is a significant contributor to the economy of many countries, including Indonesia. In the Karo Regency, Payung District, Arabica coffee farming is a major source of income for many farmers. However, the income earned by these farmers can vary greatly depending on several factors, including the form of coffee processing, production costs, and selling prices. This study aims to analyze the added value of Arabica coffee processing in different forms, as well as the factors that influence the income of Arabica coffee farming in Payung District.

Methodology

This research was conducted in Payung District, Karo Regency, using the Purposive method. The main purpose of this study is to analyze the added value of the processing of Arabica coffee which consists of three forms, namely grain, green bean, and powder. In addition, this study also aims to analyze the income earned from the processing of Arabica coffee in that form, as well as identifying the factors that affect the income of Arabica coffee farming in the study area.

A total of 88 Arabica coffee farmers were selected as samples using the Slovin method. The analysis methods used include descriptive analysis, income analysis, multiple linear regression analysis, and hayami methods. The results of this study will provide important insights for Arabica coffee farmers in Payung District to increase their income.

Analysis of Added Value

The results of this study showed that the added value obtained from Arabica coffee processing in the form of grain was Rp 1,771.54/kg, in the form of a green bean of Rp 9,310.59/kg, and in the form of powder of Rp 135,678/kg. This shows that there are significant differences in added value based on the form of coffee processing.

Income from Arabica coffee processing in the form of grain reaches Rp 2,377,742.3 per production, for green beans of Rp 3,823,977.5 per production, and for powder of Rp 11,152,347.7 per production. This indicates that the form of coffee processing has a significant impact on the income earned by Arabica coffee farmers.

Analysis of Factors Affecting Revenue

Further analysis found that factors of production such as seed costs, fertilizer costs, labor wages, and selling prices have a significant effect simultaneously on Arabica coffee farming income in Payung District. However, when viewed separately, only factors such as labor wages, fertilizer costs, and selling prices that have a significant influence on income. Meanwhile, the cost of seedlings does not show a significant effect on farming income.

The results of this study suggest that Arabica coffee farmers in Payung District should pay more attention to production costs, especially in terms of labor wages and fertilizer selection, because these factors are proven to contribute significantly to increased income. In addition, more attention to the selling price also needs to be done, given that a good selling price can increase overall income.

Implications and Recommendations

The results of this study provide important insights for Arabica coffee farmers in Payung District to increase their income. By understanding the added value of various forms of coffee processing, farmers can direct their efforts to focus on the type of processing that provides higher income, such as processing into coffee powder.

It is also recommended that farmers pay more attention to production costs, especially in terms of labor wages and fertilizer selection, because these factors are proven to contribute significantly to increased income. In addition, more attention to the selling price also needs to be done, given that a good selling price can increase overall income.

By understanding the factors that affect income, Arabica coffee farmers can make better decisions in managing their farm businesses, which in turn can improve their welfare and the surrounding community. Through a comprehensive data-based approach and analysis, it is expected that Arabica coffee farming in Payung District can develop better in the future.

Conclusion

In conclusion, this study provides valuable insights into the added value of Arabica coffee processing in different forms, as well as the factors that influence the income of Arabica coffee farming in Payung District. The results of this study suggest that Arabica coffee farmers in Payung District should pay more attention to production costs, especially in terms of labor wages and fertilizer selection, because these factors are proven to contribute significantly to increased income.

Limitations of the Study

This study has several limitations that should be noted. Firstly, the study only focused on Arabica coffee farmers in Payung District, Karo Regency, and may not be generalizable to other regions. Secondly, the study only analyzed the added value of Arabica coffee processing in three forms, namely grain, green bean, and powder, and may not be representative of other forms of coffee processing.

Future Research Directions

Future research should focus on exploring other factors that affect the income of Arabica coffee farming, such as market demand, government policies, and climate change. In addition, future research should also focus on developing strategies to improve the income of Arabica coffee farmers, such as improving production efficiency, reducing production costs, and increasing market access.

References

[List of references cited in the study]

Appendix

[Appendix containing additional data and information]

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Q&A: Analysis of Added Value and Factors that Influence the Income of Arabica Coffee Farming in Payung District, Karo Regency

Q: What is the main purpose of this study?

A: The main purpose of this study is to analyze the added value of the processing of Arabica coffee which consists of three forms, namely grain, green bean, and powder. In addition, this study also aims to analyze the income earned from the processing of Arabica coffee in that form, as well as identifying the factors that affect the income of Arabica coffee farming in the study area.

Q: What methods were used in this study?

A: This research was conducted in Payung District, Karo Regency, using the Purposive method. The analysis methods used include descriptive analysis, income analysis, multiple linear regression analysis, and hayami methods. A total of 88 Arabica coffee farmers were selected as samples using the Slovin method.

Q: What are the results of this study?

A: The results of this study showed that the added value obtained from Arabica coffee processing in the form of grain was Rp 1,771.54/kg, in the form of a green bean of Rp 9,310.59/kg, and in the form of powder of Rp 135,678/kg. Income from Arabica coffee processing in the form of grain reaches Rp 2,377,742.3 per production, for green beans of Rp 3,823,977.5 per production, and for powder of Rp 11,152,347.7 per production.

Q: What factors affect the income of Arabica coffee farming in Payung District?

A: The results of this study found that factors of production such as seed costs, fertilizer costs, labor wages, and selling prices have a significant effect simultaneously on Arabica coffee farming income in Payung District. However, when viewed separately, only factors such as labor wages, fertilizer costs, and selling prices that have a significant influence on income.

Q: What are the implications of this study?

A: The results of this study provide important insights for Arabica coffee farmers in Payung District to increase their income. By understanding the added value of various forms of coffee processing, farmers can direct their efforts to focus on the type of processing that provides higher income, such as processing into coffee powder.

Q: What are the recommendations of this study?

A: It is recommended that farmers pay more attention to production costs, especially in terms of labor wages and fertilizer selection, because these factors are proven to contribute significantly to increased income. In addition, more attention to the selling price also needs to be done, given that a good selling price can increase overall income.

Q: What are the limitations of this study?

A: This study has several limitations that should be noted. Firstly, the study only focused on Arabica coffee farmers in Payung District, Karo Regency, and may not be generalizable to other regions. Secondly, the study only analyzed the added value of Arabica coffee processing in three forms, namely grain, green bean, and powder, and may not be representative of other forms of coffee processing.

Q: What are the future research directions?

A: Future research should focus on exploring other factors that affect the income of Arabica coffee farming, such as market demand, government policies, and climate change. In addition, future research should also focus on developing strategies to improve the income of Arabica coffee farmers, such as improving production efficiency, reducing production costs, and increasing market access.

Q: What are the benefits of this study?

A: The results of this study provide valuable insights into the added value of Arabica coffee processing in different forms, as well as the factors that influence the income of Arabica coffee farming in Payung District. By understanding the factors that affect income, Arabica coffee farmers can make better decisions in managing their farm businesses, which in turn can improve their welfare and the surrounding community.

Q: What are the implications for policy makers?

A: The results of this study have implications for policy makers in terms of developing strategies to improve the income of Arabica coffee farmers. Policy makers can use the findings of this study to develop policies that support the development of Arabica coffee farming in Payung District, such as providing training and education to farmers, improving access to markets, and reducing production costs.

Q: What are the implications for coffee industry stakeholders?

A: The results of this study have implications for coffee industry stakeholders, such as coffee traders, processors, and exporters. Coffee industry stakeholders can use the findings of this study to develop strategies to improve the income of Arabica coffee farmers, such as improving production efficiency, reducing production costs, and increasing market access.

Q: What are the implications for researchers?

A: The results of this study have implications for researchers in terms of developing new research questions and methodologies to study the added value of Arabica coffee processing and the factors that influence the income of Arabica coffee farming. Researchers can use the findings of this study to develop new research questions and methodologies to study the coffee industry in other regions.