OPERATIONAL COST CONTROL STRATEGIES THROUGH COFFEE PULP WASTE MANAGEMENT AND SOP COMPLIANCE FOR COFFEE PROCESSING SMES

Abstract

This community engagement initiative was designed to address critical operational cost challenges faced by coffee processing Small and Medium-sized Enterprises (SMEs) in Indonesia. The program focuses on two key areas: the lack of Standard Operating Procedure (SOP) compliance, which leads to inefficiency, and inefficient coffee pulp waste management, which represents both a disposal cost and a missed revenue opportunity. The target audience comprised 30 coffee processing SMEs in the Garut region, West Java, who often struggle with thin profit margins and inconsistent processing. The implementation methods included participatory workshops, hands-on clinics for SOP development, and practical demonstrations of coffee pulp valorization (e.g., the production of 'cascara' tea and organic compost). The results show a significant improvement in participants' ability to identify cost drivers and implement basic SOPs, leading to reduced processing errors. Furthermore, participants successfully initiated waste-to-value streams, turning coffee pulp from a costly waste product into a potential revenue source. This program underscores that an integrated approach combining process standardization (SOPs) with circular-economy principles (waste management) is a highly effective strategy for enhancing the financial resilience and sustainability of coffee SMEs.