Circular Economy Adoption on Coffee Production: Case study of a Coffee Cooperatives Farmer in Indonesia

Industrial and Systems Engineering Department, Industrial Technology and System Engineering Faculty, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia

^* Corresponding author: dana@ie.its.ac.id

Abstract

The coffee industry in Indonesia contributes 16.15% to the plantation sector’s GDP. As coffee production increases, it leads to a rise in its waste, which can pollute the environment. Coffee waste could be processed into cosmetic ingredients, bioethanol, briquettes, cascara tea, fertilizer, and animal feed. This study aims to compare three scenarios of processing coffee husk waste into cascara tea, fertilizer, and animal feed based on economic and environmental perspectives. It evaluates the environmental and economic impacts of implementing a circular economy in the coffee and livestock industries using Life Cycle Assessment and Benefit and Cost Analysis. The use of Life Cycle Assessment to calculate environmental impacts, while Benefit and Cost Analysis aids in calculating economic impacts. The scenario of processing waste into fertilizer and animal feed was chosen because it has the best value using the Goal Programming method. This research provides insights into the application of circular economy to enhance the sustainability of coffee industry and other agriculture sectors in Indonesia.