Socio-economic analysis of organic rice production : a case study of smallholder farmers in West Java Province, Indonesia | |
| Author | Sujianto |
| Call Number | AIT Thesis no.AB-19-03 |
| Subject(s) | Organic farming--Indonesia Sustainable agriculture Rice trade--Indonesia Rice--Indonesia |
| Note | A Thesis submitted in partial fulfillment of the requirements for the degree of Master of Agribusiness Management in Agribusiness Management |
| Publisher | Asian Institute of Technology |
| Abstract | In term of sustainability, organic rice farming should have socio-economic, financial, and environmental benefit for all drivers. The study assessed the perception, motivation constraints, belief, the existing agriculture practices, factors adoption, and financial feasibility for accelerating the adoption phase. The primary data were based on questionnaire to organic (n=100) and conventional farmers (n=103) household in West Java Province, Indonesia. The methods that used were descriptive statistics, independent t-test, Weighted Average Index (WAI), logit binary logit regression, cost structure, profit analysis, Cost Benefit Ratio (CBR), sensitivity analysis, Net Present Value (NPV), Internal Rate of Return (IRR). The results show that there were different perception between ORF (Organic Rice Farming) farmers and CRF (Conventional Rice Farming) farmers on production, quality, health and safety, price and market, environmental concern, and certification aspect. ORF farmers had more positive perception than conventional farmers. CRF had main barriers which were indicated by WAI such as lower yield (0.63), risk-worries (0.70), and no cash compensation (0.62). Whereas ORF had the very strong motivation of WAI results that were a higher price (0.82) and their lifestyle (0.83). ORF’ farmers had a lack of understanding of GMO (Genetic Modified Organism) seed, natural fertilizer resource, self-claim certification, and certification providers. The experiences were getting seed difficulty, unchanged cropping pattern, having supporting institution issues, and environmental concern, however still had a strong belief for future. The likelihood affecting factors of adoption from the logit model results were the informal education, rice field size, fragmented land, average cost, farmers’ knowledge, and their membership of farmers group. Due to agricultural practices, ORF had the different of their using variety, seed procurement, transplanting age, water management system, pest control management, and fertilization technique. The ORF cost structure was labor (66%), seed and fertilizers inputs (27%), and other (7%). ORF farming had significantly higher differences on the revenue, fertilizers expenditure, pest control labor, depreciation cost, and subscription fee, whereas ORF had only a lower seed cost since they produce the seed by themselves. The ORF was more profitable than the CRF system in line with its cost. The significant finding on financial feasibility was lucrative for farmers but it was not feasible for the investor side. ORF had high initial investment cost and declining yield in the commencing year which indicated by a higher NPV and IRR of CRF. The CRF and ORF NPV’s value were US$ 975.76 and US$ 885.27, respectively. IRR of CRF and ORF were 30% and 23% per six months. |
| Year | 2019 |
| Type | Thesis |
| School | School of Environment, Resources, and Development |
| Department | Department of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB)) |
| Academic Program/FoS | Agribusiness Management (AB) |
| Chairperson(s) | Datta, Avishek; |
| Examination Committee(s) | Kuwornu, John K.M;Anal, Anil K.; |
| Scholarship Donor(s) | Indonesian Agency for Agricultural Research and Development (IAARD); |
| Degree | Thesis (M. Am.) - Asian Institute of Technology, 2019 |