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Pathway analysis of vegetable farming commercialization

Author

Listed:
  • Joko Mariyono
  • Apri Kuntariningsih
  • Hanik A. Dewi
  • Evi Latifah

    (Postgraduate School of Management, University of Pancasakti, Indonesia
    Faculty of Administration Science, Brawijaya University, Indonesia
    Assessment Institute for Agricultural Technology, Indonesian Agency for Agricultural Research and Development, Indonesia
    Assessment Institute for Agricultural Technology, Indonesian Agency for Agricultural Research and Development, Indonesia)

Abstract

High-valued vegetable farming can increase farmers’ income if the vegetables are cultivated in commercial manner. This paper analyses factors that determine farmers’ intention to commercialize vegetable farming; and the effect of commercialization on farmers’ income. The study used structural equation model to estimate paths affecting farmers to engage commercial farming and its impact of commercial on households’ income. Household and farm characteristics, business environment, and market support were hypothesized to influence farmers to commercialize vegetable farming. Data for this study were compiled from a quantitative survey of 360 farm households located in four major vegetable producing regions of Eastern Indonesia. Results indicate that commercial vegetable farming provides economic advantage in terms of in- creased income. To encourage commercial vegetable farming, vegetable agribusiness terminal with all market infrastructures should be established in the potential vegetable producing regions of Indonesia.

Suggested Citation

  • Joko Mariyono & Apri Kuntariningsih & Hanik A. Dewi & Evi Latifah, 2017. "Pathway analysis of vegetable farming commercialization," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(2), pages 115-124, April.
    • Handle: RePEc:uii:journl:v:9:y:2017:i:2:p:115-124
    DOI: 10.20885/ejem.vol9.iss2.art1
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    Cited by:

    1. Gregory C. Luther & Joko Mariyono & Raden M. Purnagunawan & Ben Satriatna & Martin Siyaranamual, 2018. "Impacts of farmer field schools on productivity of vegetable farming in Indonesia," Natural Resources Forum, Blackwell Publishing, vol. 42(2), pages 71-82, May.
    2. Yinhao Wu & Enru Wang & Changhong Miao, 2019. "Fertilizer Use in China: The Role of Agricultural Support Policies," Sustainability, MDPI, vol. 11(16), pages 1-23, August.
    3. Rakeshkumar Mahto & Deepak Sharma & Reshma John & Chandrasekhar Putcha, 2021. "Agrivoltaics: A Climate-Smart Agriculture Approach for Indian Farmers," Land, MDPI, vol. 10(11), pages 1-28, November.
    4. Mangku Purnomo & Fenna Otten & Heiko Faust, 2018. "Indonesian Traditional Market Flexibility Amidst State Promoted Market Competition," Social Sciences, MDPI, vol. 7(11), pages 1-17, November.

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    More about this item

    Keywords

    commercial vegetable farming; income effect; structural equation modelling; agribusiness.;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

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