Alternative based farmer model for increasing red chili production in Bener Meriah, Aceh

Abstract

This study aims to understand and model the partnership system in the red chili supply chain in Bener Meriah Regency. This study uses a system dynamics method to build a partnership model in a dynamic and complex red chili supply chain. The subject of this research is a partnership system in the red chili supply chain in Bener Meriah Regency to improve the bargaining position of farmers. The results show that in an equal partnership policy scenario, in the formal partnership model a loan structure for farmers from partners is added and the debt structure is eliminated. Based on the simulation results after the application of an equal partnership policy between farmers and partners, cash, profits and efficiency levels of chili farming increased from before. Through the equal partnership, it is hoped that the standard of living of chili farmers can improve in the future. For equality between chili growers and partners, there needs to be interference and the government's willingness to issue partnership rules with small farmers. Without government intervention, equality between smallholders and partners will be difficult to realize.