Income Levels and Factors That Influence the Unsustainability of Cassava (Manihot Utilissima) Partnership in Lampung Province, Indonesia

Abstract

Lampung Province is the largest cassava center in Indonesia. The cassava partnership pattern developed in Lampung as an effort by companies and farmers to increase production and obtain optimal benefits for each party. Unfortunately, many partnerships failed and eventually ended in the middle. This study aims to analyze the income of partner cassava farmers and non-partner cassava farmers and the factors leading to cease of the cassava partnership in Lampung Province, Indonesia. This study was conducted using a survey method in the central locations of cassava production and tapioca agroindustry centers in Lampung Province from July to September 2018.  The number of sample farmers was 126 cassava farmers (63 farmers conducted partnerships and 63 farmers had not been in partnership). Data were analyzed by descriptive quantitative method.  Analysis of the factors that influence farmers’ decisions to do partnership was assessed using logistic regression. Research of cash income of partner cassava farmers was Rp 22,855,464.79 per ha and cash income of non-partner cassava farmers was Rp 13,819,044.20. The factors that influence the decision of cassava farmers in partnerships were land area, cassava farming experience, and farming income. Although promising, many partnership patterns of agricultural products, particularly cassava in Lampung, have discontinued (break-off partnerships). The unsustainability of cassava partnership in Lampung was caused by the violations committed by farmers by selling their crops to other companies/factories and then the companies/factories paid cheaper price compared to other companies/factories that did not have partnerships with farmers.