Has The sweet pepper value chain benefitted farmers? a case study in Pasuruan Regency, Indonesia

Abstract

Sweet pepper farmers in Indonesia produce such a potential amount that contributes to the need of export and domestic demands. The high potency of sweet pepper development can be supported by farmers in Pasuruan, East Java. However, they are still in a low level of welfare as they always get the lowest income in every agricultural commodity value chain activities. This study aimed to understand: 1) feasibility analysis by farmers, 2) actors involved in sweet paper chain activities; and 3) its value chain analysis. The sampling technique used was non-probability approach with purposive method. Primary data was obtained by interviewing value chain actors. Data analysis was carried out in descriptive quantitative to analyze the costs and revenues of farming, to describe the value chain that was formed and to count the added value by using Hayami Method. The feasibility analysis showed that sweet pepper conducted by farmer in Pasuruan is feasible. There were 6 value chains which actors are farmers, middleman, wholesaler, retailer, collector, and consumers. Most respondent did 2 types of chain and among all of them, the biggest added value added was provided by farmers.