West Java Province is the center of the largest tea producer in Indonesia, includes its tea smallholders. The existence of tea farmer groups as main actor on tea agribusiness plays important and strategic role in realizing sustainability business unit for tea smallholder downstream supply chain. This study aims to: (1) describes the role of tea farmer groups on tea smallholder downstream supply chain; 2) describes the development of tea smallholder downstream supply chain cooperatives. The main method of this study used a descriptive qualitative approach. Data was collected by in depth interview and focus group discussion (FGD). Data sources were analyzed by used analysis triangulation. The results shown that a few active tea farmer groups in West Java, can successful run the role of group as a business unit in downstream supply chain that has changed its member’s behavior in tea selling activity, improved the member’s income, improved the value added of tea smallholder product, improved the transfer of simple processing technology of tea production, encouraged the local tea product creation, improved tea promotion with government support, and built network in market. In develop sustainability tea supply chain cooperatives, tea farmer groups together joint in tea farmer group association (Gapoktan) to built own factory and village unit cooperative (Koperasi), built network and make a partnerships with government, private plantation, tea factories, and stores. The challenges of tea farmers groups in downstream supply chain are capital, tea prices, and policy that pro tea smallholder. So, sustainable assistance and extension to tea farmer groups important needed.

Keywords: role, tea farmer group, downstream, supply chain, cooperative