Analysis of Economic Institutional Transformation Description to Ensure Business Sustainability and Improve Farmer Welfare

Abstract

The process of agricultural development using the agribusiness system requires necessary conditions and sufficient conditions. Some of the requirements for agribusiness development are the availability of capital, natural resources, human resources and technology. All these mandatory conditions will be allocated and mobilized more optimally if there is an adequacy condition, namely the availability of institutional equipment. The close loop agribusiness horticulture program for red chili commodities in Garut Regency is a prototype for the implementation of the agribusiness system that summarizes the various requirements in a closed chain or close loop. The initial initiation of the government's role is still dominant, but in accordance with long-term goals, independence and empowerment of farmers are absolutely necessary so that farmers can be more proactive and progressive in utilizing market opportunities not only locally but regionally, nationally and internationally. Adequacy requirements in the form of institutional tools are needed, not only socio-cultural but institutional that also focus on achieving business profits. In this case, there was a transformation of farmer groups into cooperatives.