Key Coffee: Establishing Specialty Coffee Toarco Toraja by Building Capacity of Farmers and Middlemen
| Authors | Hidemi Yoshida Agnes Rampisela |
| Reviewer(s) | Austine Gasnier |
| Lead Organization | Key Coffee |
| Type of Organization | Foreign company/MNC |
| Country |
Indonesia
(East and South East Asia)
|
| Business Sector | Agriculture |
| Role of the Poor | Employee Producer |
| MDG |
|
| Download Case Study Summary | Forthcoming |
| Download Full-Length Case Study | Download PDF |
| Abstract | P.T. Toarco Jaya, subsidiary of Key Coffee Ltd., a large Japanese company, established a brand of specialty coffee called “Toarco Toraja” by procuring Arabica coffee from Indonesian farmers, and by running its own coffee plantation in the country. Coffee trees that can produce high quality coffee are grown in the mountainous area, where people travel on foot or on horseback. In order to facilitate the collection of coffee beans, Toarco established purchasing stations close to farmers, and leveraged local collectors. After overcoming a number of barriers, such as the lack of farmers’ knowledge and skills, P.T. Toarco Jaya is now exporting 200-500 tons of coffee beans per year, while benefiting about 7,000 small-scale farmers as suppliers, and providing 53 full time and 900 temporary jobs at its Rainforest Alliance certified plantation. Today, Arabica coffee has become a reliable source of income for farmers, and Sulawesi is well-known for its coffee. |
| Citation | Yoshida, Hidemi & Rampisela, Agnes. "Key Coffee: Establishing Specialty Coffee Toarco Toraja by Building Capacity of Farmers and Middlemen." GIM Case Study No. B123. New York: United Nations Development Programme, 2011 |
| Reference | B123 |
| Source | GIM 2010 |
| Type | Case Study |
| Language | English |
| Constraints | Access to Financial Services Knowledge and Skills Market information Physical Infrastructure Regulatory Environment |
| Strategies | Adapt Products and Processes Combine Resources and Capabilities with Others Engage in Policy Dialogue with Government Invest in Removing Market Constraints Leverage the Strengths of the Poor |