Middlemen play a crucial role in various industries, serving as an economic institution and a social network structure. This study conducted in Aceh, Indonesia, sheds light on the significance of middlemen in empowering smallholder coffee farmers and improving their socio-economic status. By providing knowledge, skills, and tools, middlemen assist smallholders in transitioning from commercial coffee production to specialty coffee, thereby building trust and fostering growth. In this particular market, the price of coffee cherries harvested by smallholders is determined by quality. Hence, the empowerment offered by middlemen enables smallholders to enhance the quality of their coffee, leading to better financial outcomes. However, it is not solely economic factors that shape the relationship between smallholders and middlemen. This study also highlights the influence of social network variables, such as ethnic and religious ties that strengthens the communal relationships, on the farmers' choice of sales arrangement. These social connections play a significant role in shaping the dynamics of the market and the decisions made by smallholders. Overall, the study emphasizes the multifaceted nature of middlemen as both economic agents and social connectors, demonstrating their impact on the coffee industry and the socio-economic landscape of smallholder farmers and the corresponding actors in the value chain.
