Export price of Arabica coffee from North Sumatra

Oct 13, 2025 by magicalceylontours.com 59 views

Introduction

North Sumatra is renowned for its vast potential in the development of Arabica coffee commodities, particularly through the export sector. The region's rich soil, favorable climate, and extensive experience in coffee production have made it an ideal location for coffee cultivation. However, the success of Arabica coffee exports in North Sumatra is heavily influenced by various factors, including global demand, economic conditions, and exchange rates. This study aims to identify the key factors affecting Arabica coffee exports in North Sumatra and analyze the surplus of producers and consumers related to these exports.

Background

The Indonesian Coffee Exporter Association (AEKI) of the North Sumatra region has been collecting data on Arabica coffee exports since 2002. This data provides valuable insights into the trends and patterns of Arabica coffee exports in the region. Additionally, various other sources have been consulted to gather information on the factors influencing Arabica coffee exports. The data used in this study spans a period of 10 years, from 2002 to 2012.

Methodology

To analyze the factors affecting Arabica coffee exports in North Sumatra, multiple linear regression analysis was employed. This method allows for the examination of the relationships between multiple independent variables and a dependent variable. The free variables studied include:

Export price of Arabica coffee from North Sumatra: This variable represents the price at which Arabica coffee is exported from North Sumatra.
United States GDP per capita: This variable represents the economic prosperity of the United States, a major destination for Arabica coffee exports.
Nominal exchange rate of the rupiah against the dollar: This variable represents the exchange rate between the Indonesian rupiah and the US dollar, which affects the competitiveness of Arabica coffee exports.

The dependent variable is the value of coffee exports from North Sumatra, which represents the total value of Arabica coffee exported from the region.

Research Result

The results of the analysis conducted reveal several important findings. Firstly, the export price of North Sumatra Arabica coffee and GDP per real United States have a significant positive influence on the value of coffee exports in North Sumatra. This indicates that the higher the price of coffee and the more prosperous the United States economy, the value of Arabica coffee exports from North Sumatra will increase. This shows that global demand, especially from developed countries, is very influential on the performance of coffee exports in this area.

However, on the other hand, the nominal exchange rate of the rupiah against the dollar has a negative influence on the export value of Arabica coffee in North Sumatra. This indicates that if the rupiah exchange rate weakens against the dollar, export costs will increase, which can reduce the competitiveness of North Sumatra Arabica coffee in the international market.

Surplus Producer and Consumer

Further analysis shows that the consumer surplus is greater than the producer surplus. This means that in the context of Arabica coffee exports, the profits obtained by consumers are far more than those received by producers. This situation can occur because the selling price of coffee in the international market tends to be high, so producers only get a small portion of existing profits, while consumers enjoy lower prices compared to market value.

Conclusion

From the results of this study, it can be concluded that there are various factors that influence the exports of Arabica coffee in North Sumatra. Among these are export prices, GDP per capita of destination countries, and exchange rates. Knowledge of these factors is essential for stakeholders in planning strategies to increase Arabica coffee exports. In addition, the emphasis on increasing the bargaining value of products and better understanding of the dynamics of international markets will assist producers in increasing their profits in the midst of increasingly fierce global competition.

Implications

The findings of this study have several implications for stakeholders involved in the Arabica coffee export industry in North Sumatra. Firstly, producers should focus on increasing the quality and quantity of their products to meet the demands of global markets. Secondly, exporters should be aware of the exchange rate fluctuations and adjust their pricing strategies accordingly. Finally, policymakers should consider implementing policies that support the development of the coffee industry in North Sumatra, such as providing training and resources to producers and exporters.

Limitations

This study has several limitations that should be acknowledged. Firstly, the data used in this study is secondary data, which may not be entirely accurate or up-to-date. Secondly, the study only examines the factors affecting Arabica coffee exports in North Sumatra and does not consider other factors that may influence the industry. Finally, the study only focuses on the export sector and does not consider the domestic market.

Future Research Directions

Future research should aim to address the limitations of this study and provide a more comprehensive understanding of the factors affecting Arabica coffee exports in North Sumatra. Some potential research directions include:

Examining the impact of climate change on Arabica coffee production in North Sumatra
Investigating the role of government policies in supporting the development of the coffee industry in North Sumatra
Analyzing the effects of global economic trends on Arabica coffee exports in North Sumatra

By addressing these research gaps, future studies can provide a more nuanced understanding of the factors affecting Arabica coffee exports in North Sumatra and inform strategies for improving the competitiveness of the industry.

Q: What are the main factors that affect Arabica coffee exports in North Sumatra?

A: The main factors that affect Arabica coffee exports in North Sumatra include export prices, GDP per capita of destination countries, and exchange rates.

Q: How does the export price of Arabica coffee from North Sumatra affect the value of coffee exports?

A: The export price of Arabica coffee from North Sumatra has a significant positive influence on the value of coffee exports. This means that the higher the price of coffee, the higher the value of coffee exports.

Q: What is the impact of the United States GDP per capita on Arabica coffee exports in North Sumatra?

A: The United States GDP per capita has a significant positive influence on the value of coffee exports in North Sumatra. This means that the more prosperous the United States economy, the higher the value of Arabica coffee exports from North Sumatra.

Q: How does the nominal exchange rate of the rupiah against the dollar affect Arabica coffee exports in North Sumatra?

A: The nominal exchange rate of the rupiah against the dollar has a negative influence on the export value of Arabica coffee in North Sumatra. This means that if the rupiah exchange rate weakens against the dollar, export costs will increase, which can reduce the competitiveness of North Sumatra Arabica coffee in the international market.

Q: What is the surplus of producers and consumers related to Arabica coffee exports in North Sumatra?

A: The consumer surplus is greater than the producer surplus. This means that in the context of Arabica coffee exports, the profits obtained by consumers are far more than those received by producers.

Q: What are the implications of the findings of this study for stakeholders involved in the Arabica coffee export industry in North Sumatra?

A: The findings of this study have several implications for stakeholders involved in the Arabica coffee export industry in North Sumatra. Producers should focus on increasing the quality and quantity of their products to meet the demands of global markets. Exporters should be aware of the exchange rate fluctuations and adjust their pricing strategies accordingly. Policymakers should consider implementing policies that support the development of the coffee industry in North Sumatra.

Q: What are the limitations of this study?

A: This study has several limitations that should be acknowledged. The data used in this study is secondary data, which may not be entirely accurate or up-to-date. The study only examines the factors affecting Arabica coffee exports in North Sumatra and does not consider other factors that may influence the industry. The study only focuses on the export sector and does not consider the domestic market.

Q: What are the future research directions for this study?

A: Future research should aim to address the limitations of this study and provide a more comprehensive understanding of the factors affecting Arabica coffee exports in North Sumatra. Some potential research directions include examining the impact of climate change on Arabica coffee production in North Sumatra, investigating the role of government policies in supporting the development of the coffee industry in North Sumatra, and analyzing the effects of global economic trends on Arabica coffee exports in North Sumatra.

Q: What are the benefits of understanding the factors affecting Arabica coffee exports in North Sumatra?

A: Understanding the factors affecting Arabica coffee exports in North Sumatra can provide valuable insights for stakeholders involved in the industry. It can help producers and exporters to make informed decisions about their business strategies, and policymakers to develop effective policies that support the development of the coffee industry in North Sumatra.

Q: How can the findings of this study be applied in practice?

A: The findings of this study can be applied in practice by stakeholders involved in the Arabica coffee export industry in North Sumatra. Producers can focus on increasing the quality and quantity of their products to meet the demands of global markets. Exporters can be aware of the exchange rate fluctuations and adjust their pricing strategies accordingly. Policymakers can consider implementing policies that support the development of the coffee industry in North Sumatra.

Q: What are the potential risks and challenges associated with Arabica coffee exports in North Sumatra?

A: The potential risks and challenges associated with Arabica coffee exports in North Sumatra include exchange rate fluctuations, changes in global demand, and climate change. These risks and challenges can affect the competitiveness of North Sumatra Arabica coffee in the international market and impact the livelihoods of producers and exporters.

Q: How can the Arabica coffee export industry in North Sumatra adapt to the changing global market conditions?

A: The Arabica coffee export industry in North Sumatra can adapt to the changing global market conditions by increasing the quality and quantity of their products, being aware of the exchange rate fluctuations and adjusting their pricing strategies accordingly, and considering implementing policies that support the development of the coffee industry in North Sumatra.