The determinants of cassava productivity and price under the farmers’ collaboration with the emerging cassava processors: A case study in East Lampung, Indonesia

Abstract

This study identified the impact of the emerging cassava processors to the cassava production in Sukadana, East
Lampung, Lampung, Indonesia. 80 cassava farmers in Sukadana were surveyed to know their relationships with
processors, production cost structures and cultivation practices. Regression analysis showed that harvesting age was
a critical factor to determine the cassava yield and price in the study area. Three types of farmers were observed in the
study area, namely, farmers joining collaboration with a foreign food company, collaboration with local processors and
farmers who have no collaborations with processors. The technical support provided by the emerging processing
companies which tried to break into the current oligopsonistic cassava market had a positive impact to optimize the
plant management. The increasing demand for cassava induced by biofuel production would attract more companies
to the processing business and the tightening competition among the companies would motivate the companies’
investment in supporting activities for farmers. This in return would contribute to the farmers’ welfare through
improved profit of cassava production. These findings can be used as practical information for formulating effective
cassava marketing policies in the study area