STRATEGY TO IMPROVE THE VALUE CHAIN OF NAOOGST TOBACCO AGRIBUSINESS

Identification of the value chain in Naa-oogst (NO) tobacco agribusiness provides information on the level of importance or need for value chain development. Which shows that there is an institutional structure that can facilitate strengthening of farmers in general through the institutional roles carried out by each institution. Some conditions of partnership between companies and farmers and the role of institutions require efforts to set appropriate strategies to determine how the value chain can be improved. So it can provide and guarantee guarantee for the increase in the income of the agribusiness value chain supply chain actors. Based on the description, this study aims at: (a) describing the most important criteria of improving value chain performance, and (b) what is the best strategy for improving the value chain in NO tobacco agribusiness chains. The results showed (i) Increasing the empowerment of farmers in the NO tobacco supply chain and suppressing uncertainty about farmers’ NO Tobacco prices, (ii) a combination strategy between partnerships between farmers and exporters and at the same time being followed by institutional strengthening of farmer groups such as the JTFA (Jember Tobacco Farmers Association)

Institutions and coordination models in na-oogst tobacco agribusiness

One  of  the  main  issues encompassing Na-Oogst (NO) tobacco  agribusiness  is farmers’ dissatisfaction toward manufactured tobacco selling price. In general, a little trust is built among NO tobacco agribusiness actors.  This  condition  can  be  seen  from  the  lack  of partnership  offered  by  tobacco  companies.  Efforts  to  socialize  the  partnership  cannot  be implemented  optimally  because  an  assumption about the  farmer  groups’ less  role exists. Ideally, farmer  groups  are  institutions  that  should  be  able  to connect farmers as  NO tobacco producers and product  recipients companies.  These  conditions  certainly  contribute  to  the achievements of overall tobacco agribusiness. Based on the description, this study aimed at: (a) describing institutions  involved  in  NO  tobacco  agribusiness,  (b)  identifying roles of the institutions and coordinations formed in NO tobacco agribusiness chain, and (c) analyzing the effectiveness  and institutional  strengthening  efforts to  support  better  tobacco  agribusiness chain.  The  results  showed  (i)  there were institutions in  the  level  of  farmers,  traders,  and companies  contributing to the supply  chain of NO  tobacco, (ii) direct  and  indirect roles of institutions affected the coordination among agribusiness actors, and (iii) the effectiveness of institutional  coordination has  not  met  the expectations  and strengthening  efforts  at  key institutions, especially the government, are needed

The role of local government in agribusiness development in border areas

The involvement of family members of tobacco farmers in farming activities has been commonly practised in Jember Indonesia. For youths and children, doing farming activities was a matter of helping their parents and earning money from their own works. Despite the involvement of youths and children has been practiced from generation to generation in the local people, and that the practice has been perceived significant in the business, there has been no study aimed to deepen the reality of their involvement in the tobacco farming activity. Therefore, to fill this void this study aims to: (a) describe the characteristics and roles of the young generation involved in NO tobacco farming, (b) analyse the nature of transfer of knowledge and skills received by youth groups. The results of the study show: (i) youth groups began to get involved at the age of 13 years and up to 24 years, (ii) The role of the young people was primarily to handle cultivation, transportation, to warehousing, and (iii) transfer of knowledge and skills was obtained from their parents as a mentor mainly comprising of the knowledge on tobacco characteristics and the types of NO tobacco based on the planting time