Sustainability Assessment of the Arabica Coffee Agribusiness in North Toraja: Insight from a Multidimensional Approach

Rico Sia, Rahim Darma (), Darmawan Salman and Mahyuddin Riwu
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Rico Sia: Agriculture Science Program, Graduate School, Hasanuddin University, Makassar 90245, Indonesia
Rahim Darma: Department of Socio-Economic, Agriculture Faculty, Hasanuddin University, Makassar 90245, Indonesia
Darmawan Salman: Department of Socio-Economic, Agriculture Faculty, Hasanuddin University, Makassar 90245, Indonesia
Mahyuddin Riwu: Department of Socio-Economic, Agriculture Faculty, Hasanuddin University, Makassar 90245, Indonesia

Sustainability, 2025, vol. 17, issue 5, 1-24

Abstract: The sustainability of the Arabica coffee agribusiness is increasingly urgent as global demand grows while environmental and socioeconomic challenges intensify. North Toraja, renowned for its high-quality Arabica coffee, faces significant barriers to sustainability, including poor infrastructure, limited adoption of modern agricultural technologies, and socioeconomic disparities among coffee farmers. These issues threaten the long-term viability of the sector, which is a critical contributor to local livelihoods and the regional economy. This study evaluates the sustainability of the Arabica coffee agribusiness in North Toraja using a Multidimensional Scaling (MDS) approach, assessing five key dimensions: ecological, economic, social, infrastructure and technology, and institutional. Data were collected through Focus Group Discussions with stakeholders across the coffee value chain and secondary sources. The results reveal a moderately sustainable overall index of 73.78, with the economic and institutional dimensions performing strongly at 87.53 and 84.91, respectively. However, the infrastructure and technology dimension scored the lowest at 55.77, highlighting significant deficiencies in road conditions, postharvest handling, and access to advanced farming technologies. To enhance sustainability, this study recommends strategic investments in rural infrastructure, training programs to promote technology adoption, and strengthening institutional frameworks such as cooperatives and government programs. Inclusive social policies that address equity and community engagement are also crucial. By addressing these gaps through a comprehensive, multidimensional approach, North Toraja’s Arabica coffee sector can achieve greater sustainability, improving farmer welfare and ensuring competitiveness in the global market. These findings serve as a model for sustainable coffee production in similar regions.

Keywords: sustainable agriculture; value chain development; smallholder empowerment; institutional support; climate resilience (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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