Analysis and development direction of smallholder cocoa plantation in Padang Pariaman Regency, West Sumatra Province

Abstract

Cocoa demand as industrial raw materials continues to increase, both in domestic and overseas markets. This causes the cocoa price is quite high and relatively stable. Due to the role and its potential, a cocoa as one of promising plantation commodities which can be developed to support regional development in Padang Pariaman Regency. Padang Pariaman Regency is the second largest producer of cocoa in West Sumatra with a total area of 13,312 ha plantation in 2011 with a production of 15,540 tons. Seen from productivity, Padang Pariaman Regency has the highest cocoa productivity compare with other cities in West Sumatra, which is 1.17 tons/ha. Considering the potential development of cocoa in Padang Pariaman Regency, research and analysis needs to be done so that people do not plant cocoa in locations that do not comply with the criteria for crops growth (biophysical), spatial and economic aspects. It required guidance for people in choosing the right location in order to obtain maximum yields. In addition, feasibility factor, market aspect and factors that influence development of cocoa plantations according to stakeholders are also need to be considered. The objectives of this reseach are: (1) to analyze potential location for development of cocoa plantations based on biophysical aspects, environment and availability of land, (2) to analyze financial feasibility of cocoa plantation on each of the land suitability classes, (3) to analyze the chain, margin trading system and market integration of cocoa commodity in Padang Pariaman regency, (4) to analyze factors that influence development of cocoa plantations in Padang Pariaman regency according to stakeholders, (5) to arrange development direction of smallholder cocoa plantation in Padang Pariaman Regency. The experiment was conducted for 6 (six) months, from April to September 2013 in the Padang Pariaman Regency. Research activities consist of: preparation, field data collection, processing and analysis of data and writing of the thesis. This study uses primary and secondary data. Primary data were obtained through direct observation in the field by using questionnaires and interviews. Secondary data and maps obtained from the relevant agencies. The analysis methods used in this study are analysis of Geographic Information Systems (GIS), financial analysis, margin analysis, marketing chains and market integration, and Analytical Hierarchy Process (AHP). The results show that potential area for development of smallholder cocoa plantations based on biophysical aspects and land availability area in Padang Pariaman Regency is 51,342 ha, while not potential/suitable land is 2,754 ha. Locations of potential area presented in the map form. The results of financial analysis show that cocoa plantations in the Padang Pariaman Regency feasible to be developed, seen from values of Net Present Value (NPV), Net Benefit Cost Ratio (Net BCR), and Internal Rate of Return (IRR). NPV value is positive of Rp 45,094,495 in S2 land suitability class and Rp 35,985,486 in S3 land suitability class. Meanwhile, BCR values obtained are 7.23 and 5.07, respectively. IRR exceeds the existing interest rate (12%), which illustrates that the interest rate up to 40.45% for S2 class and 33.39% for S3 class smallholder cocoa plantation in Padang Pariaman Regency still provide benefits to the farmers with 5 years 11 months and 7 years 2 months payback periods, respectively. There are three forms of cocoa marketing chains in Padang Pariaman Regency, namely: (1) marketing chain 1: farmers - nagari merchants – sub district merchants - regency merchants, (2) marketing chain 2: farmers - sub district merchants - regency merchants, (3) marketing chain 3: farmers - nagari merchants - regency merchants. Marketing margin chains show that values of marketing margin on marketing chain part 2 give higher price to farmers. Cocoa markets in Padang Pariaman Regency is not yet integrated between farmers and regency merchants markets. Factor that influence development of smallholder cocoa plantations in Padang Pariaman Regency is market factors primarily related to feasible price and stability of cocoa commodity price. Another influencing factors in sequence are human resources includes the cultivation of technical skill as well as availability labors and farm extentions, technology factors in cultivation of cocoa, land cultivation size and capital factors. Acreage of location for development of smallholder cocoa plantation in Padang Pariaman Regency is 51,342 ha, divided into three priorities, namely: priority 1 with 2,176 ha spread over 11 districts, priority 2 covering 43,017 ha are scattered throughout the districts and the third priority area of 6,149 ha spread over 11 districts. Spatial distribution of locations for development smallholder cocoa plantation presented in map form.