Navigating Market Volatility in Agriculture Through Digital Analytics: Lessons from Indonesia’s Coffee Sector

Indonesia, as one of the world’s largest coffee producers, faces significant market volatility that impacts the incomes of local coffee farmers. Despite rising global coffee prices, farmers often do not receive proportional benefits, raising important questions about the distribution of value in the sector and indicating the need for more innovative and robust approaches to market analysis. This study aims to analyze the discourse around Indonesian coffee in digital media and interpret the findings in the context of market dynamics and policy implications. The use of digital analytics and Gibbs Sampling for Dirichlet Multinomial Mixture (GSDMM) identified three dominant topics: (1) Coffee prices and economic stability, (2) Economic development and coffee industry growth, and (3) The role of farmers in the coffee industry growth. The analysis also shows a significant correlation between discussions about farmers and the economic aspects of the industry, underscoring the importance of economic and industry factors in farmers’ lives. The implications of this study are highly relevant for stakeholders and policymakers, as the results can be used to design more synergistic policies that support industry growth while also addressing its direct impacts on farmers. The findings provide a data-driven basis for policy recommendations that can reduce market volatility and support the sustainability of the coffee industry.