SOCIO-ECONOMIC FACTORS EFFECTING TO THE IMPLEMENTATION OF BUSINESS

MANAGEMENT AND PRIMATANI TECHNOLOGY AND NET INCOME OF BANANA AGRIBUSINESS

(A Case Study of a Project of Primatani in Cugenang Subdistrict, Cianjur, Indonesia)

THE 10TH TRIPLE HELIX INTERNATIONAL CONFERENCE, BANDUNG, 8 – 10 AUGUST 2012

ASEP DARMANSYAHHENY

PURWANINGSIHIDA MARINA

OUTLINE

BACKGROUNDGOALS AND OBJECTIVES

RESEARCH METHODSTATE OF RESEARCH AREAS

RESULTS OF RESEARCH CONCLUSIONS AND RECOMMENDATIONS

BACKGROUND*INDONESIA IS A PRODUCER

AND EXPORTER *CIANJUR IS ONE OF CENTERS OF

BANANAS

PRIMATANI IS AN ACCELERATIONOF INNOVATION SOSIALIZATIONOF AGRICULTURAL TECHNOLOGY

ASSISTANCE MANAGEMENT AND TECHNOLOGY, AND INSTITUTIONAL

STHRENGTENING OF FARMING

SOCIO-ECONOMIC SITUATION OF BANANA FARMERS

PRODUCTION, INCOMES AND WELFARE OF FARMERS

MAP OF BANANA CENTERS IN CIANJUR

CIBEBER

GEKBRONG

AGRABINTA

SUKARESMI CIKALONG KULON

CIBINONG

SINDANGBARANG

CIDAUN

229 Ha

CUGENANG

96 Ha

479 Ha

893 Ha911 Ha

92 Ha

295 Ha370 Ha197Ha

Regional Development Plan

Reference : Agriculture Office of Cianjur, 2010

GOALS AND OBJECTIVES

GOALS The influence of socio-economic

factors of banana farmers simultaneously on the application of business management and primatani technology

The influence of socio-economic factors of banana farmers partially to the application of business management and primatani technology

The influence of the application of business management and primatani technology on net income of banana agribusiness

Farmers of banana in Cugenang District, Cianjur, Indonesia

OBJECTIVES

RESEARCH METHODS• Survey method• Variables : - Socio-economic factors of banana

farmers (X) - Implementation of business

management and primatani technology (Y) - Net income of banana agribusiness (Z)• Data collection techniques :

- Interview - Study of literatures

• Data Analysis : - Data (ordinal) are changed to interval

with MSI - Descriptive analysis - Statistical analysis (regression

analysis and different test)

Research Paradigm

SOCIO-ECONOMIC FACTORS (X)

•Large of land•Age of farmers•Business experience •Education of farmers •Dependent family •Source of business financing •Product Selling Price Determination

THE IMPLEMENTATION

OF BUSINESS MANAGEMENT AND PRIMATANI

TECHNOLOGY (Y)

NET INCOME OF BANANA

AGRIBUSINESS (Z)

State of Research Areas• Located in the northern part of West Java, about 80 km

south of Jakarta• Region of highlands with altitude 700-1,200 meters

above sea level.• Average rainfall in Cugenang for 10 years is 2,724 mm /

year• 88.51% of the area is dominated by agricultural and

plantation land • Intercropping planting• Plantations are small scale, scattered location, low fruit

quality • Number of farmer groups (Sarampad : 4, Talaga : 6,

Padaluyu : 5)• Production per month (Ambon Lumut : 236 tons, Ambon

Putih : 186 ton, Nangka : 89 tons, Raja Bulu : 83 tons, Tanduk : 20.5 ton,s Mas : 3.5 tons)

1.82%5.45% 3.64

%

29.09%

1.82%

30.91%

3.64%

16.36%

1.82% 5.45%

0.25

0.30

0.40

0.50

0.80

1.00

1.50

2.00

2.50

3.00

26 – 30 years9%

31 - 40 years29%

41 - 50 years48%

> 51 years14%

RESULTS OF

RESEARCH

Age

Large of Land

<5 years18%

6 - 10 years66%

11 - 15 years11%

16 – 20 years5% Business Experience

Graduated from ES

75%

Gradu-ated from

JHS16%

Graduated from SHS9%Education

1 Person14%

2 People32%

3 People25%

4 People16%

> 5 People14%

Dependets Family

61%

34%

5%Source of Business Financing

Dominant of loans financ-ingBalanced between own financing and loans fi-nancingDominant own financing

36%

61%

2%

Products Selling Price Determination

Dominant by buyers

Balance between buyers with farmers

Dominant by farmers

Dimension% Category

Business Planning 68 Good

Businesss Organization 69 Good

Financial Management66 Good

Bookkeeping Business 66 Good

Cropping Pattern 68 Good

Farming Techniques 68 Good

Plant Pest and Disease Control 69 Good

Post Harvest Handling 66 Good

The Application of Business Management and Primatani Technology

The influence of socio-economic factors of banana farmers

simultaneously on the application of business management and

primatani technology

Y = 3,453 X1 1,289X2 -0,576 X3 0,212X4 0,728 X50,426 X6

0,944X7-0,618

The model of multiple linear regression show highly significant indicated by the F count = 13.526 is much larger than F table = 4.88.

Socio-economic factors simultaneously have a significant effect on the application of business management and primatani technology

(R2) = 0.7251

72.51 % of variability on the application of business management and primatani technology on banana agribusiness can be explained by socio-economic factors variable.

27.49 % is explained by other variables outside the model.

Coefficient of Determination (R2)

The influence of the application of business management and primatani technology on

net income of banana agribusiness

Based on analysis of different test pairs on average. It is significant effect in the error rate (α) = 5%.

The application of business management and

primatani technology significantly affect on net income of banana agribusiness

The application of business management and primatani technology is simultaneously influenced by socio-economic factors of farmers of banana agribusiness

Socio-economic factors, those are together can be used as a model to predict changes on the application of business management and primatani technology

Partially, socio-economic factors significantly affect positively on the application of business management and primatani technology are large of land, farmers education, dependent family of farmers, and source of business financing. All five have a positive production elasticity and elastic

CONCLUSIONS

CONCLUSIONS AND RECOMMENDATIONS

Partially, socio-economic factors aren’t significant effect on the application of business management and primatani technology are age of farmers, business experience, and determination of selling price

There are socio-economic factors that namely age of farmers and determination of product selling price. Both have a negative production elasticity and inelastic

Socio-economic factors that namely large of land has the most elastic of production elasticity than other socio-economic factors.

The application of business management and primatani technology significantly affect on net income of banana agribusiness.

CONCLUSIONS

Institutional development of agriculture should encourage the creation of microfinance institutions that can provide financial assistance to farmers in the business capital

Agricultural institutions in primatani should have the power to banana farmers to enter a perfectly competitive market together to compete with the buyers / consumers in global markets

The primatani model should also be developed on a group of farmers who have larger of land for banana agribusiness rather than farmers who own less

RECOMMENDATIONS

The primatani program is that should pay attention to the regeneration of farmers and organizational restructuring of agriculture on an ongoing basis

Optimal size of each socio-economic factors that give optimal effect on net income of banana agribusiness need to be defined more clearly and definitely. Therefore more further research are needed more in-depth.

 

RECOMMENDATIONS

Wassalammu’alaikum wr. Wb