FEASIBILITY STUDY OF THE HIGH-YIELDING HORTICULTURE SEEDS BREEDING AGRIBUSINESS DEVELOPMENT IN EAST JAVA

Abstract

Horticulture is important sector because it gives significant contribution to the agricultural development in East Java. High-yielding varieties or potential varieties of horticulture demand keeps increasing. That becomes reason towards the importance of feasibility study to the potential varieties of horticulture seeds breeding agribusiness development. The objectives of this research were to understand the potential of various high-yielding varieties of horticulture, economic feasibility, and business marketing chain as well as to analyze the prospect of high-yielding varieties of horticulture seeds breeding agribusiness development. The analysis used in this research was Location Quotient (LQ), supply chain, business feasibility (feasibility study), and AHP (Analytical Hierarchy Process). The research was conducted in 5 (five) locations/regencies. This research conducted by interview to the breeder, user farmer, and seeds seller. The research results showed that potential high-yielding varieties of horticulture seeds in five regencies based on LQ calculation and discussion to the local government are rose apple (Syzygium aqueum), longan fruit, durian, ginger, bird's eye chili or thai chili, orange, potato, and mango. All potential commodities above were feasible to be developed based on R/C ratio, B/C ratio, NPV, and IRR calculation. Marketing chain for those potential commodities was various started from breeder farmer, middleman, farmer group, Regional Owned Enterprises to the user farmer or individual farmer. Prospect of the potential horticulture seeds breeding agribusiness development based on AHP analysis obtained of which varieties that have highest priority in considering horticulture seeds selection are production result attribute, seeds quality, and growth capability.