Jurnal Manajemen & Agribisnis

Selected Sustainability Indicators and Performance Rankings at The Herbal Medicine Company

Masrifah Triana — 2024-07-31

Background: Sustainability means not only the sustainable use of natural resources but also core values in the areas of human rights (HAM), employment, and inclusive business. Supply chain management performance assessment has a direct influence on sustainability performance. Compliance, monitoring, and auditing have a direct influence on improving performance, minimizing risk, and selecting suppliers to achieve Sustainable Supply Chain Management (SSCM). The research was carried out at the herbal medicine company PT. Sido Muncul Herbal Medicine and Pharmaceutical Industry Tbk.
Purpose: This research aims to select indicators, determine priorities for sustainability aspects, and select alternative SSCM performance measures
Design/methodology/approach: the Analytical Hierarchy Process (AHP) method.
Findings/Result: The top priority sustainability indicators for each sustainability aspect are net profit, employee training and development, occupational safety and health management systems, partnerships, environmental management systems, ISO 14001 certification, and certified quality management and food safety. By knowing the main indicators and priority aspects of sustainability; a manager can implement relevant and profitable SSCM activities and manage trade-offs between conflicting objectives by ensuring that profitability, environmental sustainability, and social sustainability of society can be implemented effectively, efficiently, and sustainably.
Conclusion: As a result, it can be concluded that the implementation of sustainability aspects in SIDO requires models, processes, and practices adapted to planning, production, and control. Sustainability practices are no longer considered complementary but standard business activities, so they need to be integrated. The wider the integration of sustainability into the company's business, the wider the level of integration across the enterprise's operations.
Originality/value (State of the art): SCM is a field that is concerned with sustainability performance related to its activities in generating pollution, waste, and environmental footprint. Although there is an increasing conceptual development of SCM practices and has received much attention, previous research has only focused on selecting priority SSCM practices that are most relevant to improving SSCM performance and has not linked sustainability to supply chain drivers and alternative performance measures to improve sustainability performance. In this research was conducted identifying successful supply chain practices in the context of the large corporate culture, has been listed on the Jakarta Stock Exchange, has gone global, and its products are widely used by the public, compliance with government regulations, and international standards by expanding aspects of social sustainability to K3, human resources, community, and product integrity which were not found in previous studies.

Keywords: Analytical Hierarchy Process, corporate sustainability indicators, sustainability practices, performance measurements, PT. Sido Muncul Tbk

Simulation Model of Cassava Availability For Mocaf (Modified Cassava Flour) By Considering Sustainability

Dessy Srikandi — 2024-07-31

Background: There is a high demand for wheat flour, but the supply of it is reduced due to high prices and world oats availability because of climate change and conflicts. Cassava is processed through a fermentation process into mocaf flour and can be used as an alternative substitute for wheat flour. However, the availability of cassava has decreased in the last five years.
Purpose: This research aims to determine the factors that influence the availability of cassava by considering sustainability.
Design/methodology/approach: This research uses primary data from the Mocaf agro-industry and secondary data from the Central Bureau of Statistics website, as well as previous research. Supply chain management is used in this study with a model simulation of a dynamic system. The simulation model begins by creating a Causal Loop Diagram (CLD), building a mathematical model to formulate relationships between related entities, developing a Stock Flow Diagram (SFD), and drawing the model with Stella Software.
Findings/Result: The results show that the factors that influence the availability of cassava as raw material for mocaf are harvest growth and an increase in the purchasing price of cassava at the farmer level. The simulation results show a substitution policy of 30% and cassava harvest growth of 1% every year, with the total availability of cassava being 17 million tons. The sustainability factor which refers to the simulation results, namely from the environmental dimension, can reduce CO2 emissions. The social dimension is the absorption of rural labor and home industry labor, utilization of marginal land, increasing income, and realizing food security. The economic dimension is the added value and durability of the mocaf.
Conclusion: The factors that influence the availability of cassava as raw material for mocaf are harvest growth and an increase in the purchasing price of cassava at the farmer level. Implementation of the development scenario the availability of cassava can be fulfilled.
Originality/value (State of the art): Substitution policy for mocaf and cassava harvest growth can increase the availability of cassava and implementation of the development scenario (substitution policy of 30% mocaf and cassava harvest growth of 1%) the availability of cassava can be fulfilled.

Keywords: mocaf, model simulation, cassava, supply chain management, dynamic system

Determining The Commodities and Primary Areas of The Plantation Crop Subsector in The Meranti Islands Regency

Desma Harmaidi — 2024-07-31

Background: To enhance a region's economy, it is essential to implement a development strategy focused on key sectors. This includes identifying and leveraging the potential of the plantation crop subsector to create competitive, high-value agricultural activities that can increase regional income.
Purpose: This study aims to identify the key commodities and areas within each plantation crop subsector in Meranti Islands Regency, Riau Province.
Design/methodology/approach: It utilizes five years of production data (2017-2021) from the Central Bureau of Statistics of Meranti Islands Regency. Analytical methods used to identify the superior products of plantation crops include the Sectoral Contribution Index (IKS), Growth Ratio Model (MRP), Location Quotient (LQ), Dynamic Location Quotient (DLQ), Composite Index (IK) and Hot Spot (Getis-Ord Gi*).
Findings/Result: The results indicate that the leading plantation crop commodities in Meranti Islands Regency are sago, coconut, coffee, and areca nut. These commodities are identified as the most promising based on their contribution, growth rate, production capacity to meet regional needs, export potential, and future prospects. The flagship areas are Tebing Tinggi Timur District for sago, Rangsang District for coconut, Rangsang Pesisir District for coffee, and Rangsang Barat District for areca nut. Thus, the government must make a plan for the development of plantations with the potential of each region that can improve the economy of the region.
Conclusion: The government must make a plan for the development of plantations with the potential of each region that can improve the economy of the region.
Originality/value (State of the art): This study uses GIS for spatial analysis and mapping of land potential based on factors such as soil fertility, rainfall, and topography.

Keywords: composite index, featured commodities, featured regions, plantation crop subsector, hot spot (Getis-Ord Gi*)

Farmer's Decisions in Selecting Superior Shallot Seeds in Solok Regency West Sumatra

Conny Belinda Tane — 2024-07-31

Background: Shallots are a commodity that is exceptionally strategic and economical regarding farming profits. One way that farmers can increase production results is by adopting technology, such as using superior seeds.
Purpose: This research aims to describe the implementation of the SOP for SS Sakato red onion farming, identify factors that influence farmers using superior SS Sakato seeds, and analyze differences in performance between shallot farmers who use SS Sakato seeds and Non SS Sakato seeds.
Design/methodology/approach: The methods used are qualitative and quantitative analysis, logit regression analysis, and propensity score matching (PSM) analysis.
Findings/Result: The results show that the SOP adoption rate for shallots is 82%, with the highest SOP adoption being plant maintenance and the lowest SOP adoption rate determining when to plant. Factors significantly influencing farmers' decisions to use superior SS Sakato seeds in Sungai Nanam are farmer education, farmer income, access to production facilities, agricultural extension, land area, and seed resistance to pests and diseases. The use of superior SS Sakato seeds significantly positively impacts shallot production and farmer profit in shallot farming. The use of superior SS Sakato seeds can increase the income of shallot farmers even though the costs of farming are higher. The use of superior seeds should be able to reduce the costs that farmers have to pay, but in this study, the costs incurred by farmers remained high.
Conclusion: Increasing the productivity of shallots can be achieved by using quality seeds, using shallot varieties that are highly productive, adaptive, and resistant to pests and diseases, and improving cultivation techniques according to SOP. Farmers who use superior SS Sakato seeds should comply with the Standard Operating Procedure (SOP) to maximize shallot production. With an emphasis on increasing production, there should be support for farmers from seed breeding institutions to innovate in order to be able to provide superior seeds, support from technology-producing institutions, and support from extension services both from the government and the private sector.
Originality/value (State of the art): This study describes that the use of superior seeds will impact the production and productivity of shallots, costs incurred by farmers, and farmer profits. Technology is an essential factor in influencing the production function; utilizing technology will have implications for increasing efficiency. Superior seeds are a technology that can have a long-term impact.

Keywords: binary logit regression, propensity score matching (PSM), shallots, standard operating procedures (SOP), superior seeds

The Impact of Contract Farming on The Production Risk of Coffee Farming in Lampung

Moh. Hasan Basri — 2024-07-31

Background: One of Indonesia's largest producers of robusta coffee, Lampung Province still faces challenges and risks in coffee productivity. Coffee productivity in Lampung fluctuates and tends to decrease each year. Contract farming is one of the solutions to overcome these issues.
Purpose: This research aims to analyze the impact of contract farming on production and production risk in robusta coffee farming in Lampung Province.
Design/methodology/approach: The data used in this study is secondary data obtained from the Project Cooperation Agreement (PCA). This research uses a sample size of 99 contract farmers and 104 non-contract farmers. The research analysis method uses the OLS estimation approach to estimate the production function and MLE estimation for the production risk function.
Findings/Result: The results showed that contract farming significantly and positively impacts coffee production outcomes. Conversely, contract farming has a significant and positive influence on production risk. Meanwhile, factors that reduce production risk include land area and labor. Contract farming increases production yields, but it also raises production risks. This insight is crucial for farmers considering contract farming, as it underscores the need for comprehensive risk management strategies and productivity enhancements.
Conclusion: Contract farming in Lampung has successfully increased coffee production through input assistance and access to technology. However, it has also increased production risks due to the incomplete implementation of contracts by farmers. To mitigate these risks, attention must be given to factors such as land area and labor, which have been proven to reduce production risks.
Originality/value (State of the art): Contract farming in Lampung has shown great potential in increasing coffee production. However, the incomplete implementation of contracts by farmers has increased production risks. This study emphasizes the importance of risk management in contract farming. To enhance effectiveness, full implementation of contract terms and better risk management are necessary.

Keywords: coffee productivity, contract farming, Lampung Province, production risk, robusta coffee

The Role of Environmental Concern in Shaping The Purchase Intention of Eco-Friendly Packaging

Ni Ade Lianita — 2024-07-31

Background: Highlight the importance of emphasizing the necessity of utilizing environmentally benign packaging materials, particularly given the mounting environmental concerns primarily attributed to the alarming rate of plastic waste production.
Purpose: The study aims to analyze the factors that influence Generation Z consumers’ intention to purchase products with eco-friendly packaging and identify strategies that can be employed to enhance this intention.
Design/methodology/approach: A path analysis was performed using Partial Least Square with Structural Equation Modeling (PLS-SEM).
Findings/Result: The research findings indicate that environmental concerns, support for the policy, perceived behavioral control, attitude, and subjective norm positively and significantly influence the increased intention to purchase Generation Z products with eco-friendly packaging. Environmental concern and perceived behavioral control are pivotal in fostering increased purchase intention for these products. Environmental concerns strongly influence intentions to purchase eco-friendly packaged products, leading Generation Z to demand more. This phenomenon reflects consumer trends; stakeholders need involvement to encourage sustainable actions and achieve environmental sustainability, especially among young people.
Conclusion: It could be concluded that environmental concern plays a pivotal role in Generation Z's intention to purchase products with eco-friendly packaging. This concern influences various aspects of the Theory of Planned Behavior, guiding consumers toward more sustainable choices. The findings indicate that a higher level of environmental concern is associated with a greater intention to select eco-friendly packaging. Therefore, stakeholders must enhance environmental awareness among Generation Z, as they will play a pivotal role in the future of environmental sustainability development. Integrating eco-friendly practices into campus environments and business strategies will help meet this demand and support the shift toward more sustainable consumer behavior.
Originality/value (State of the art): This study uses an extended variant of the TPB with a research focus different from previous studies. Previous empirical studies such as Paul et al. (2016), Chaudhary & Bisai (2018), and Asih et al. (2020) focused on green products. In contrast, this study focuses on products with eco-friendly packaging. Paul et al. (2016) integrated the TPB model with environmental concern to examine its influence on purchase intention of green products in India, while Chaudhary & Bisai (2018) combined the TPB model with environmental concern to examine its influence on purchase intention and willingness to pay premium, and tested the moderation effect between purchase intention and green purchasing behavior in India. Asih et al. (2020) integrated the TPB model with environmental concern and environmental knowledge to examine interest in using green products. However, this study integrates environmental concern and policy to support the TPB model, examine the factors influencing Generation Z’s purchase intention toward products with eco-friendly packaging, and identify strategies to increase Generation Z’s intention to purchase.

Keywords: environmental concern, green products, purchase intention, PLS-SEM, theory of planned behavior

Investigating Farmers’ Preferences For Crop Insurance Product Attributes in Indonesia Using The Bayesian Best-Worst Method

Muhammad Ibrahim Rachman — 2024-07-31

Background: In 2015, the government of Indonesia launched a crop insurance program to anticipate the economic impact of crop failure on farmers due to the climate crisis. Despite the government's high premium subsidy, farmers' participation rate in crop insurance remains very low. Therefore, a study is needed to determine which product attributes in an agricultural insurance product are important to farmers and can affect their participation rate.
Purpose: This study aims to investigate the factors that farmers consider when selecting a crop insurance product.
Design/methodology/approach: The study focuses on the features of the Rice Farm Insurance (AUTP) product: total sum insured, product type, premium, risk coverage, and claim. The research was conducted by sending questionnaires to 110 farmers in 15 villages in Sliyeg, Indramayu. The Bayesian Best-Worst Method was used to analyze the data. Using a scale from 1 to 9, the best and worst criteria are compared pairwise.
Findings/Result: The findings indicated that the total sum insured is the most crucial consideration for farmers when choosing a crop insurance product, followed by the premium, risk coverage, terms of claims, and product type. The top two positions of the product attributes are finance-related, indicating a need for improved understanding of agricultural risk management among farmers, extending beyond dollar amount, through continuous education. With the findings in this study, the government and other stakeholders need to develop effective strategies to increase farmers' awareness of the importance of insurance in managing their business risks. This study's added value comes from convincingly showing that farmers prioritize the amount of sum insured over premiums and other aspects. Other researchers can use this research as a springboard to learn more about the importance of product attributes in creating crop insurance products.
Conclusion: The top two positions of the product attributes are finance-related, indicating a need for improved understanding of agricultural risk management among farmers, extending beyond dollar amount, through continuous education. With the findings in this study, the government and other stakeholders need to develop effective strategies to increase farmers' awareness of the importance of insurance in managing their business risks.
Originality/value (State of the art): This study's added value comes from its convincingly showing that farmers prioritize the amount of sum insured over premiums and other aspects. Other researchers can use this research as a springboard to learn more about the importance of product attributes in creating crop insurance products.

Keywords: climate crisis, crop insurance, Bayesian best-worst method, multi-criteria decision making, farmer preference

What’s Antecedent Driving Intention To Purchase Organic Food? Examining Attitude and Trust

Sulis Riptiono — 2024-07-31

Background: Organic food has its own appeal for consumers, so the development of the organic food business is currently rapid. Choosing the right food is the main key in maintaining health by living a healthy lifestyle.
Purpose: Thus, this research aims to examine antecedents that can increase consumer purchase intentions for organic food in Central Java.
Design/Methodology/approach: A total of 242 of organic food consumers as the respondent were involved to fill out the survey with a questionnaire determined based on purposive sampling techniques. The collected data was processed and analysed using structural equation models with the help of AMOS statistical tools.
Finding/Result: The research results prove that consumer purchase intentions for organic food are influenced by consumer attitudes and beliefs in organic food, but are not influenced by food safety concerns. Meanwhile, consumer trust in organic food is influenced by food safety concerns and health consciousness is not significant. Furthermore, attitude toward organic food is influenced by food safety concerns and health consciousness.
Conclusion: This research concludes that the antecedents used in this research have an important role in increasing consumer purchase intentions towards organic food.
Originality/value (state of the art): The originality of this research is that this research contributes to providing different insights regarding antecedents that can increase consumer purchasing intentions for organic food.

Keywords: green marketing, purchase intention, organic food, health consciousness, food safety

The Impact of Fish Farmers’ Group Participation on The Catfish Sector Income in Pringsewu District

Septiyana Nur Fitriyani Putri — 2024-07-31

Background: Challenges farmers face such as low bargaining power, difficulty accessing information regarding farming and marketing of production can be overcome if catfish farmers are active in fish farmers’ groups. Fish farming groups were formed to increase their members' farming income, through implementing fisheries businesses supported by infrastructure assistance from the Government.
Purpose: This research aims to analyze the role of fish farmers groups towards members, analyze catfish on farm income, and analyze differences in income based on participation in farming groups.
Design/methodology/approach: This study used a non-probability sampling method to sample 100 catfish farmers which is divided into 51 members and 49 non-members of the fish farming group. The method used is quantitative analysis using Endogenous Switching Regression (ESR) model analysis.
Findings/Result: The results of the research show that the fish farmers group has a sufficient role as a place for teaching and learning, a place for cooperation and production units, and the rho (ρ) value in the ESR model estimation shows that participation in farmers group has a positive impact on the income of members of catfish farming, namely that members' on farm income is greater than the income of random sample individuals and the income of non-members of the fish farmers group.
Conclusion: Role and participation in fish farming groups have a positive impact on members' on farm income, namely members' income is greater than non-members, and members' on farm income can increase.
Originality/value (State of the art): This research uses exogenous and endogenous variables which together in the ESR method can influence participation decisions in fish farming groups. Research by Mutiara et al. (2023) used a questionnaire to analyze the role of cultivation groups qualitatively, while in the research, apart from using a questionnaire with a Likert scale, empirical evidence was also carried out using the ESR model.

Keywords: Analytical Hierarchy Process, corporate sustainability indicators, sustainability practices, performance measurements, PT. Sido Muncul Tbk

Balancing Rural Development and Corporate Image: Evidence From Social Responsibility Performance in Agriculture Program of Mining Company

Firdaus Marihot Sitompul — 2024-07-31

Background: Mining companies naturally have the potential to harm the environment, and CSR is a step towards achieving a good image. The harmony and balance between corporate image and rural development through social welfare indicators is an essential aspect of mining companies’ CSR practices.
Purpose: This study aims to analyze the performance of the agriculture CSR program on the corporate image and social welfare of mining companies.
Design/methodology/approach: Using Structural Equation Modeling (SEM) analysis techniques based on partial least squares (PLS), this study employed purposive sampling to determine the research sample based on one criterion. The sample consisted of 97 out of 117 program recipients.
Findings/Result: The findings show that the economic, social, and environmental performance of CSR programs in the agricultural sector positively and significantly influences corporate image and social welfare. Further analysis of the formulation of farming business analysis indicates that mining companies' CSR programs in agriculture can be assessed as sustainable.
Conclusion: The three performance aspects of the agricultural CSR program affect the corporate image and social welfare of mining companies.
Originality/value (State of Art): This research presents novelty in the management field with empirical research findings, especially related to the comprehensive influence on mining companies and surrounding communities by the three performances of the agricultural CSR programs implemented, which were not explored before.

Keywords: agriculture program, corporate image, corporate social responsibility performance, mining company, social welfare