The impact of COVID-19 pandemic on business risks and potato commercial model

Abstract

Abstract This study was aimed (1) to analyze the productivity, cost, and income of potato farming; (2) to analyze the risk of potato farming; and (3) to analyze the potato trade system at the level before and during COVID-19 pandemic. This study used a descriptive-quantitative research type. It was conducted in Banjarnegara Regency, Jawa Tengah Province, Indonesia. The data were collected through surveys, observations, and Focus Group Discussions. The unit of analysis is the farmers who plant potatoes. Data analysis was done descriptively. The results showed that there is no difference between the two marketing channels before and during pandemic. There are two channels of the trading system, namely farmer–collector–traders–wholesaler–exporter partners and farmer–collector–traders–wholesalers–retailers. However, the trading model maximizes the Agribusiness Sub Terminal (AST) as a potato trading agent that can provide direct price information, attract traders, and facilitate transactions and trading contacts. The trading model allows potato trading agents to provide direct price information, attract traders, and facilitate transactions and trading contacts. The implication of this study is to anticipate productivity risk and potato farming income risk through the AST function. This study contributes to the condition of farming before and during COVID-19 pandemic by comparing differences in productivity, costs, income, productivity risk, and income risk as well as the potato grading model.