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The Nucleus-Estate and Smallholder Partnership towards Export Competitiveness of Timor Leste Coffee

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DOI: 10.4236/me.2019.107108    71 Downloads   126 Views

ABSTRACT

Coffee is one of the superior agricultural commodities in Timor Leste. It is cultivated by majority of smallholder farms. The Cooperativa Cafe Timor (CCT) is the biggest company partner with local coffee farmers in Timor Leste that facilitates farmers to apply good agricultural practices to yield better production and quality, in turn higher price. The CCT accounts for about 65 percent of Timor Leste’s coffee exports. This study aims to firstly describe the type of partnership between coffee farmers and the CCT in Timor Leste. Secondly, to examine the competitiveness of Timor Leste’s coffee in the world market with selected producing countries. Based on the rights and obligation between farmers and the CCT, it can be categorized as a Nucleus-estate and Smallholder (NES) partnership model developed by the CCT and the local coffee farmers. Results from Revealed Comparative Advantage (RCA) show that Timor Leste is not able to compete with Vietnam and Indonesia, but it competes with the Philippines and Thailand. Nonetheless, Timor Leste coffee is able to compete in the world market in terms of its quality with organic certification.

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da Costa Graciana, B. , Ambarawati, I. , Darmawan, D. and Budiasa, I. (2019) The Nucleus-Estate and Smallholder Partnership towards Export Competitiveness of Timor Leste Coffee. Modern Economy, 10, 1655-1670. doi: 10.4236/me.2019.107108.

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