FARMERS DEPENDENCY IN THE POTATO SUPPLY CHAIN IN BATUR, CENTRAL JAVA, INDONESIA

WIBOWO, BONIFATIUS JUNIANTO and KUSDIARTINI, VERONICA and Rahutami, Angelina Ika and Anugraheni, Dyah Titisari FARMERS DEPENDENCY IN THE POTATO SUPPLY CHAIN IN BATUR, CENTRAL JAVA, INDONESIA. Jurnal pada 4th International Conference on Global Business and Social Science 2021. (Submitted)

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Abstract

Potatoes are an agricultural commodity that is widely cultivated in Indonesia. One of the leading potato producing areas is Batur sub-district in Banjarnegara, Central Java. Although the Batur sub-district has potential in potato cultivation and business, most farmers in this area still follow the wholesaler's price. This condition happens according to the agreement made between wholesalers and farmers; after farmers obtain credit from wholesalers through collectors, they must obey wholesalers' policies. Moreover, farmers can also not know the potato market with certainty due to the limited mastery of market information, especially prices and added value to various actors in the potato supply chain. This study aims to: (i) describe how the potatoes supply chain in Batur, Banjarnegara; furthermore, the comparison of potato prices and value-added by distribution channel, (ii) discuss and analyze the causes of differences in potato market prices and value-added in distribution channels, (iii) recommend the appropriate potato distribution strategy. The data required include secondary and primary data. Secondary data were obtained from the Central Bureau of Statistics, Department of Agriculture. Meanwhile, primary data was obtained through a questionnaire from 20 potato farmers and traders from Wonoyoso, Sumberejo, Batur, and Grogol villages. Interviews were conducted with six potato farmer groups. The results showed that potato farmers were weak compared to other potato supply chain actors such as wholesalers, collectors, wholesale market traders in other provinces, retailers, MSMEs, factories, and exporters. The dependence of farmers on local wholesalers is quite substantial because wholesalers control potatoes' marketing network from upstream to downstream. The study recommendations are restructuring and improving cooperation performance and providing business loans with lower interest rates and fast processing. The Agro Cooperative will shorten the potato distribution channels and provides potato farmers with important information such as market information and business conditions

Item Type: Article
Subjects: 300 Social Sciences > 330 Economics > Production Economics > Small Business
Depositing User: mr B. Juniato Wibowo
Date Deposited: 02 Feb 2021 07:02
Last Modified: 06 Feb 2021 04:19
URI: http://repository.unika.ac.id/id/eprint/23427

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