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Argopuro mountain in Jember district, East Java, has the potential to develop coffee agroindustry. The areas include Arjasa, Sukorambi, Panti, Bangsalsari, Tanggul and Sumberbaru sub-districts. This research was conducted to determine potential coffee-producing locations for coffee agro-industry development. The research was quantitative and qualitative research using location quotient (LQ) method, then for region with highest LQ value, then factors identified for development coffee agroindustry using factor analysis with KMO and Bartlett's Test. The highest LQ results were found in Bangsalsari sub-district which (5.02). Identification of factors affecting the development of coffee agro-industry in the Bangsalsari contained 9 factors, namely education, members farmer group, institutions, marketing, quality, area, production, capital and technology. Analysis of factor obtained the KMO value of 0.590, significance value of Bartlett's Test, and Sphericity was 0.001. The factor analysis was appropriate for coffee agroindustry development and results of anti-image matrices obtained 5 factors, namely marketing (0.737), quality (0.709), production (0.707), capital (0.673) and technology (0.633). These factors influence the development of coffee agro-industry in Argopuro mountain area Jember.

Identification of potential locations and factors for coffee agro-industry development in Argopuro mountain, Jember