Research Article

Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges

Volume: 32 Number: 1 June 26, 2026
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Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges

Abstract

Purpose: This study aims to explore the potential and development challenges in strengthening traceability systems and enhancing value addition within the Timor coffee supply chain in Kupang Regency, Indonesia. It addresses structural constraints affecting transparency, equity, and sustainability in smallholder-based coffee systems.

Design/Methodology/Approach: A mixed-methods approach was employed, integrating qualitative field observations, semi-structured interviews, and focus group discussions with quantitative analysis of cost structures and value distribution. The research framework combines Value Chain Analysis (VCA) with a traceability assessment model to evaluate operational practices across two key coffee processing units during the 2024 harvest season.

Findings: The results reveal that while rudimentary traceability mechanisms are in place, they remain largely manual, fragmented, and underdeveloped in terms of digital integration and standardization. Value distribution is highly skewed, coffee shops capture the highest margin (60.69%), while farmers receive only 4.14%, pointing to deep structural inequities. A set of phased interventions is proposed across short, medium, and long-term timeframes to enhance traceability, empower farmer organizations, and promote more equitable value capture.

Originality/Value: This study draws on empirical data from a smallholder-based coffee supply chain operating under a social forestry scheme, a context that has received little attention in existing literature. It offers practical policy recommendations and an integrated framework linking the technical, institutional, and governance dimensions of traceability, with implications for rural development in emerging coffee regions.

Keywords

Ethical Statement

The authors declare that they have complied with ethical rules and obtained consent from the participants in the research questionnaire. The ethical compliance of the survey questions used in the research was guaranteed by the head of the ethics committee and the Head of the Department of Food, Crops and Horticulture.

Thanks

The authors would like to express their sincere gratitude to the Center for Research and Community Service (P3M) of the State Agricultural Polytechnic of Kupang for funding this research under the Applied Research Grant scheme for 2024, in accordance with contract number: 03/P3M/SP DIPA-023.18.2.677616/2024.

References

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  2. Bair, J. (2005), Global capitalism and commodity chains: Looking back, going forward. Competition and Change, 9(2), 153–180. https://doi.org/10.1179/102452905X45382
  3. Debebe, A. (2022), Value Chain Analysis of Coffee Product in The Case of Sidama Region, Ethiopia. www.questjournals.org.
  4. Djamali, R., Cahyaningrum, D., & Putra, D. (2022), Determinants and strategies of social forestry development for integrated coffee agribusiness in the foot of mount Argopuro area, Jember regency. IOP Conference Series: Earth and Environmental Science, 980. https://doi.org/10.1088/1755-1315/980/1/012053
  5. Garcia, A., Dávila, J., & Wong, L. (2022), Framework to Improve the Traceability of the Coffee Production Chain in Perú by Applying a Blockchain Architecture. 2022 32nd Conference of Open Innovations Association (FRUCT), 93–101. https://doi.org/10.23919/FRUCT56874.2022.9953846
  6. Gereffi, G. (1994), The organization of buyer-driven global commodity chains: How US retailers shape overseas production networks. In G. Gereffi & M. Korzeniewicz (Eds.), Commodity chains and global capitalism. Praeger. https://doi.org/10.1017/9781108559423.003
  7. Grabs, J., & Ponte, S. (2019), The evolution of power in the global coffee value chain and production network. Journal of Economic Geography. https://doi.org/10.1093/JEG/LBZ008
  8. Guimarães, A., Schiavi, S., Bouroullec, M., & Pereira, J. (2022), Value creation and distribution in the specialty coffee chain: A study of the relationship between agents in Paraná, Brazil and Europe. Organizações Rurais & Agroindustriais. https://doi.org/10.48142/2420221842

Details

Primary Language

English

Subjects

Marketing in Agricultural Management

Journal Section

Research Article

Early Pub Date

June 23, 2026

Publication Date

June 26, 2026

Submission Date

August 6, 2025

Acceptance Date

April 14, 2026

Published in Issue

Year 2026 Volume: 32 Number: 1

APA
Setiawan, K., Idayati, E., & Kana Tiri, J. T. (2026). Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges. Tarım Ekonomisi Dergisi, 32(1), 189-201. https://doi.org/10.24181/tarekoder.1725921
AMA
1.Setiawan K, Idayati E, Kana Tiri JT. Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges. TJAE. 2026;32(1):189-201. doi:10.24181/tarekoder.1725921
Chicago
Setiawan, Krisna, Eny Idayati, and John Tibo Kana Tiri. 2026. “Strengthening Traceability Systems and Value Addition in the Timor Coffee Supply Chain: Potential and Development Challenges”. Tarım Ekonomisi Dergisi 32 (1): 189-201. https://doi.org/10.24181/tarekoder.1725921.
EndNote
Setiawan K, Idayati E, Kana Tiri JT (June 1, 2026) Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges. Tarım Ekonomisi Dergisi 32 1 189–201.
IEEE
[1]K. Setiawan, E. Idayati, and J. T. Kana Tiri, “Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges”, TJAE, vol. 32, no. 1, pp. 189–201, June 2026, doi: 10.24181/tarekoder.1725921.
ISNAD
Setiawan, Krisna - Idayati, Eny - Kana Tiri, John Tibo. “Strengthening Traceability Systems and Value Addition in the Timor Coffee Supply Chain: Potential and Development Challenges”. Tarım Ekonomisi Dergisi 32/1 (June 1, 2026): 189-201. https://doi.org/10.24181/tarekoder.1725921.
JAMA
1.Setiawan K, Idayati E, Kana Tiri JT. Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges. TJAE. 2026;32:189–201.
MLA
Setiawan, Krisna, et al. “Strengthening Traceability Systems and Value Addition in the Timor Coffee Supply Chain: Potential and Development Challenges”. Tarım Ekonomisi Dergisi, vol. 32, no. 1, June 2026, pp. 189-01, doi:10.24181/tarekoder.1725921.
Vancouver
1.Krisna Setiawan, Eny Idayati, John Tibo Kana Tiri. Strengthening traceability systems and value addition in the Timor coffee supply chain: Potential and development challenges. TJAE. 2026 Jun. 1;32(1):189-201. doi:10.24181/tarekoder.1725921