Development Of Creative Coffee-Based Agribusiness at Bumdesma Giri Arjuno, Batu City, East Java

Abstract

Purpose of Study: This study aims to analyze the performance of a creative coffee-based agribusiness at BUMDesma Giri Arjuno and formulate a value proposition-based business model to enhance value addition and market reach.

Methodology: The research employs a qualitative descriptive method using a case study approach. Data were collected through observation, in-depth interviews, questionnaires, and documentation from BUMDesma managers and coffee farmers. Analysis was conducted by scoring indicators of innovation, technology, and value-added across each agribusiness subsystem, followed by the formulation of a business model using the Value Proposition Canvas (VPC) and the Business Model Canvas (BMC)

Main Findings: The results indicate that the performance of the coffee-based creative agribusiness falls into the high category with a score of 4.14, with the innovation aspect (score 4.07) and technology aspect (score 3.50) both in the high category, and the value-added aspect in the very high category (score 4.85). Innovation is reflected through the application of agroforestry, coffee product diversification, and branding based on local wisdom. Modern technology is used in post-harvest processes to improve product quality. The VPC analysis reveals that the primary uniqueness of Arjuno Arabica coffee lies in its distinctive flavor and aroma, featuring herbal notes such as sinom and temulawak as well as fruity notes like apple and orange, which serve as the key differentiator for specialty coffee consumers. Consumers also expect consistent quality, a strong local identity, informative packaging, and ease of purchase. The BMC analysis highlights

Novelty/Originality of This Study: opportunities for growth through digital marketing, café partnerships, strengthening the customer community, and collaboration with the government, academia, and coffee industry stakeholders.