indonesia's supply coffee chain is getting complex or is it getting simpler now?

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i'm trying to re-map the coffee supply from the farmer to the last Zroaster and the numbers give me a headache. There's an average of 6-8 hands with coffee before reaching Zroaster. farmers go to the village puffs, puffs to the venerable merchants, to the local merchants, to the local exporter, sometimes there are international brokers, new to importing in the destination country, new to roaster.

In terms of logistics, the World Bank 2023 note Indonesia is about 23% of GDP for the total cost of national logistics. The Malaysian compared to 1 3% or Vietnam which is 18%. It's not small and it must feel in coffee cost as well.

On the one hand there's a new technology that should make it simpler: there's a traceability startup using blockchain, there's digitalization of export documentation, there's a market for B2B for farmer connections directly to the buyer. But on the field of reality how? Anyone else feel any real change?

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from my position ever involved on the export side, the overall supply of coffee chain only gets more complex than it gets simpler. Regulations are getting tighter from the international side of the buyer especially since EU Deforestation Regulation began to apply to the facenya. buyer now request garden data geolocation, proof of no deformity, social audit. These are all new layers that didn't exist five years ago.

Technology helps with compliance but doesn't eliminate its complexity. The compound itself is getting more complex.

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i tried one of those B2B platforms for the green bean straight from the farmers. The concept is good. But the execution was still a lot of trouble: the farmer inconsistent upload stock info, sample request the process was slow, logistics last mile into the garden uncovered platform. It's still more efficient with agents I've known for years.

Maybe five more years. The platform's more modern, but now I can't depend on it for operational.

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i don't know anything about the EU Deforsation Regulation called earlier. That's Europe's rule and that's its direct effect on farmers in Indonesia? I mean does a small farmer have to prepare his own documents or enough operatives?

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EUDR is a European regulation that requires commodities that enter EU including coffee should not come from deformity land after 31 December 2020. Small farmers can't complain themselves because they need geolocation and technical documentation. The person in charge of supply is an operator or an importer who wants to enter the U.S. market, but eventually they'll ask for data to exporter who will ask the operatives who will ask the farmers. So there's still a new burden on the farmer's level even if it's not direct.

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there's a blockchain traceability pilot running with USAID at several operatives at Aceh and Anjawesi. From what I've heard, the results are pretty promising for compliance documentation to international buyer. Not to simplify the supply chain, but at least make the documentation more creative trail. If you can scale into more operatives it could be a significant plus.

ICT adoption farmers are still bottleneck. 2022 survey is below 30% of coffee farmers who have a stable internet. If the infrared doesn't clear from the upstream, any platform won't be able to reach them.

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maybe it can reverse it a little. the "complex" supply chain isn't bad if each layer has a real and transparent plus. the problem is the complete supply chain is not transparent and unequal extraction.

if traceability technology can make any layer look like who took what, it's a good progress though the chain itself doesn't decrease the number of people.

indonesia's supply coffee chain is getting complex or is it getting simpler now?

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