Author : Da Cruz, Guilhermino

Summary : This research was conducted in Timor Leste, a new state, total acreage is 14,609.38 square km with population +- 790,000. About 3/4 of its resident working in agricultural sector. The objectives of the research were (1) understanding the marketing channel and marketing institution in concerned Arabica coffee product channeling from producer to consumer in Timor Leste, (2) to calculate the amount of coffee marketing margin in each marketing channel, (3) understanding the factors having effect to amount of Arabica coffee marketing margin in Timor Leste. The results of this research were : there are 3 types of marketing channel, which are categorized in permanent and transient channel. At first marketing channel, amount of margin is US$ 0.098 per kg; second marketing channel is US$ 1.15 per kg. Farmer share of coffee price are 29.41% at channel 1, channel 2 is 41.18%, and channel 3 is 35.25%. Regression analysis indicates that the sales volume, farm level price, have negative impact to marketing margin, its mean increasing of volume of sale and farm level price will decrease the margin value. Distance of the closest market and marketing channel have positive impact, its mean increase of the distance and more indirectly marketing channel hence its margin will increase also.