Fostering cocoa industry resilience: A collaborative approach to managing farm gate price fluctuations in West Sulawesi, Indonesia

Abstract

Abstract Agricultural price fluctuations impact the economy and society, highlighting the importance of price stability for sustainable development, poverty alleviation, food security, and economic stability. This issue is particularly pronounced in the cocoa industry, where volatile prices and inefficient supply chains often harm the livelihoods of cocoa farmers. This study aimed to develop a mitigation plan to address cocoa price volatility at the farm level. The study was conducted in Tubbi Taramanu Sub-district, Polewali Mandar District, Indonesia. Through the innovative use of Interpretative Structural Modeling (ISM), the key elements are delineated in their hierarchical relationships and categorized into four quadrants: autonomous, independent, dependent, and linkage, to formulate a strategy for stabilizing cocoa prices at the farm level. This research’s findings underscored the importance of reducing farmers’ dependency on middlemen as the primary strategy for mitigating fluctuations in cocoa bean prices at the farm level. This approach is particularly vital due to the excessive reliance on middlemen, a key driver of price instability at the farm level. Furthermore, it is evident that promoting and nurturing cooperation between farmers and cocoa industry stakeholders can prove highly effective and significant when fortified by the local government’s support through the implementation of appropriate public policies.