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

Abstract

One of the leading potato-producing areas of Indonesia is the Batur sub-district in Banjarnegara, Central Java. The Batur sub-district has potential for potato cultivation and business. However, most farmers in this area still follow the wholesaler's price. According to farmers, they must obey the policies of wholesalers after they get credit from wholesalers through collectors. 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.