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Research Paper | Agricultural Economics | Indonesia | Volume 7 Issue 7, July 2018 | Popularity: 6.7 / 10

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Model and Strategies of Agribusiness Development of Cocoa Commodity in North Luwu Regency South Sulawesi Indonesia

Muslih Radhi Abdullah, Sugiyanto, Basri Modding, Mangku Purnomo

Abstract: National development program, as it is known that the greatest contribution comes from the role of agriculture sector supported by the industry in the provision of food, or as a provider of employment, and subsequently as a producer of foreign exchange. The objective of this study is to analyze model and strategies of agribusiness development of cocoa commodity in North Luwu Regency South Sulawesi Indonesia. The research approach used in this study was descriptive quantitative approach. Descriptive quantitative research aims to describe information about the extent of non-technical aspects, including the instructor characteristics, instructor motivations, instructor competences, and instructor independence, as well as the instructor performance, competence of farmer group leader and farmer's competence in Luwu Utara regency. Based on targeted samples, this study included the survey category. The survey was conducted by distributing questionnaires to respondents. Samples were collected from 5 sub-districts as follows Mappideceng Sub-district, Sabbang Sub-district, Sukamaju Sub-district, Masamba Sub-District and Tanalili Sub-district. Overall samples were collected from 100 respondents. Data was used to construct model of the relationship between the research variables. There are four exogenous variables (variables that are not influenced by other variables in a relationship model or often known as independent variables), the variables are, Instructor characteristics (X1), Instructor competences (X2), Instructor motivations (X3), Instructor independences (X4), and three endogenous variable (variables that are influenced by other variables within a relationship model or often known as dependent variable) are the Instructor performances (Y1), Head of farmer's group competence (Y2), Farmer competence (Y3) variable. In modeling, it will involve all indicator variables so that all variables are latent. In accordance with the above relationship model, the data analysis technique to be used in this research is structural equation modeling (SEM), where the independent variable will be divided into a number of arranged blocks. To implement the model, the strategy is analyzed by SWOT analysis (strength, weakness, opportunity and threat). The final model of development of cocoa farmer agribusiness has shown the relationship among variables and indicators. The best path was accomplished as follows improve instructor competences to increase instructor performance, so that the farmer competence is achieved. To achieve that development, seven strategies were formed as follows (1) Increased Human Resources apparatus extension through cocoa agribusiness education / training. (2). Reduce the shift of agricultural land to non-agricultural functions to increase cocoa production and agribusiness. (3). Optimizing the community's ability to manage cocoa agribusiness through increasing the role of farmers in the development of cocoa plantation, (4). Increasing the quantity and quality of cocoa products through the agribusiness system, (5). Improving the management and quality of Cocoa products through extension and training programs, (6). Increasing the competitiveness of cocoa products both in quality and quantity, (7). Development of industries based on the agricultural sector by developing derivatives of agricultural products to obtain high added value.

Keywords: Cocoa, Development, Farmer, Strategy, Structural Equation Modeling

Edition: Volume 7 Issue 7, July 2018

Pages: 609 - 614

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