THE EFFECT OF AGRIBUSINESS SYSTEM APPLICATION TOWARDS SEAWEED FARMERS’ INCOME: A CASE STUDY IN PAHUNGA LODU DISTRICT OF EAST SUMBA REGENCY, INDONESIA

Abstract

ABSTRACT The application of the agribusiness system in the management of seaweed business is a factor that determines the success of seaweed business. The purposes of this research: identifying the level of application of agribusiness systems in seaweed farming; analyzing the effect of the application of agribusiness systems on the income of seaweed farmers. This research was conducted in Pahunga Lodu Subdistrict, East Sumba Regency, East Nusa Tenggara. The methods used in this study are qualitative (descriptive) and quantitative. Qualitative Descriptive Analysis is used to identify the level of the application of agribusiness systems in seaweed farming. Quantitative analysis with path analysis is used to analyze the effect of the application of agribusiness systems, namely the upstream sub-system, on farm sub-system, harvest and post-harvest sub-system, and marketing sub-system on the amount of production and its impact on the seaweed farmers’ income. The results showed that the application of the agribusiness system in the upstream agribusiness sub-system, the on farm agribusiness sub-system and the harvesting and post-harvest agribusiness sub-systems were carried out very well, while the marketing agribusiness sub-system had not been done well. Upstream agribusiness sub-system, harvest and post-harvest agribusiness have a significant effect on the amount of production, while the on farm agribusiness sub-system does not significantly affect the amount of production. The marketing agribusiness subsystem and the amount of production have a significant effect on the income of seaweed farmers. KEY WORDS Agribusiness system, seaweed farming, production, farmers’ income.