Analysis of agribusiness performance of top five vegetable farming in East Java

Abstract

Abstract East Java Province is one of vegetable-producing areas; however, performance of vegetable production has not been identified. The performance will be an important indicator of regional agricultural economic development of the region. This paper aims to provide farm analyses of leading vegetable farming in East Java Province. East Java Province is one of the potential production areas for vegetables. Secondary data were collected from the Agricultural District Services of Malang, Blitar and Kediri in 2018. Five vegetables namely chilies (big and small), eggplant, yard-long bean, and tomato, which were considered leading commodities in the region, were selected for these analyses. A factor share approach, which is commonly used for financial analysis of farming systems, was employed in this study. Other financial analytical approaches were also used to alternate selection criteria. As a deterministic approach used in this study, a sensitivity analysis was conducted to determine the profitability of each vegetable commodity. The results show that chili and tomato are more labor-intensive, at which suitable for regions with an abundance of rural labor. Each vegetable has a positive profit, and thus recommended grow vegetables to increase households’ income. Big-chili is superior in terms of absolute profit, and it is recommended that big-chili can be used as the main crop. In terms of R/C-ratio and factor share, eggplant is superior, it is recommended that eggplant can be used as an alternative crop.