STRATEGY FOR TRANSFORMING THE TRADITIONAL COFFEE VALUE CHAIN TROUGH MODERNIZATION AND LOCAL MARKET INTEGRATION: A CASE STUDY OF HORSIK VILLAGE, AJIBATA DISTRICT

Abstract

This study explores the transformation strategy of the traditional coffee value
chain in Horsik Village, Ajibata District, by focusing on modernization
techniques and local market integration. Using a qualitative-descriptive
approach, the research investigates the current challenges faced by coffee
farmers, such as outdated farming methods, lack of certified seeds, low
bargaining power, and limited market access. Data were collected through
field surveys, in-depth interviews, and Focus Group Discussions (FGDs) with
farmers, local cooperatives, and government officials. The findings reveal that
the modernization of coffee production practices, coupled with strategic
market linkages to cooperatives and coffee shops, significantly enhances
value addition and economic resilience. The study recommends an integrated
model of farmer training, technological support for post-harvest processing,
and policy advocacy for farmer-market connection. This transformation is
crucial for strengthening the socio-economic fabric of the community and for
contributing to the sustainable development of Lake Toba tourism.