Direct Processing by Farmers

Oct 13, 2025 by magicalceylontours.com 115 views

Introduction

Pancur Batu District, Deli Serdang Regency, is a region known for its thriving cassava cracker industry. This industry has grown rapidly, with its products reaching markets in Java, Malaysia, and Singapore. The existence of this industry has provided a source of livelihood for the local community, particularly in the villages of Tuntung I and Tuntung II, and has played a significant role in reducing unemployment. However, behind the success of this industry lies a challenge faced by cassava cracker entrepreneurs: the availability of raw materials in the form of increasingly limited cassava.

Background

The cassava cracker industry in Pancur Batu District has its roots in the abundance of cassava production in the region. Initially, the availability of cassava was a driving force behind the establishment of the industry. However, over time, the supply of cassava has decreased, posing a significant challenge to the industry's growth. This study aims to analyze the factors that influence the demand for raw materials and the causes of low cassava production.

Methodology

This study employed a qualitative approach, collecting data from 5 cassava cracker entrepreneurs and 25 cassava farmers chosen purposively. The results of the study revealed several interesting findings.

Factors Affecting Raw Material Demand

The demand for raw materials is significantly influenced by prices, with a positive regression coefficient of 1.25 at a 5 percent testing level. This indicates that for cassava cracker entrepreneurs, cassava is a "prestige good," where demand remains high despite rising prices. Additionally, the quality of cassava has a significant effect on the demand for raw materials, with a regression coefficient of 0.21 at a 1 percent testing level. Entrepreneur income also has a significant effect on the demand for raw materials, with a regression coefficient of 0.83 at a 1 percent testing level.

Causes of Low Cassava Production

The low plant population in the region is a significant factor contributing to the low supply of cassava. The population of cassava plants is relatively low, making it difficult to meet the demand for the cassava cracker industry. Furthermore, cassava farmers do not apply intensification practices, such as the use of appropriate fertilizer, which also contributes to the low supply of cassava.

Factors Affecting Cassava Production

Land area has a significant effect on the production of cassava, with a regression coefficient of 1.10 at a 1 percent testing level. Labor also has a significant effect, with a regression coefficient of -0.32 at a 10 percent testing level. The negative coefficient indicates that the workforce in cassava farming is less productive. The use of fertilizer has a significant effect, with a regression coefficient of 0.08 at a 5 percent testing level.

Implications for Regional Development

The cassava cracker industry contributes positively to the development of the Pancur Batu sub-district by improving the welfare of the community through increasing income. The industry absorbs local labor, providing a source of income for cassava farmers and traders. The increase in income has a positive impact on the economy in the Pancur Batu District.

Solutions to Overcome Challenges

Several solutions can be implemented to overcome the challenges faced by the cassava cracker industry:

"Adoptive Father" Cooperation: Establishing cooperation between entrepreneurs and cassava farmers in the "adoptive father" system can help increase the production and quality of cassava.
Direct Processing by Farmers: Farmers can directly process cassava into cassava crackers to increase the added value of their crops.
Formation of Farmers/Cooperative Groups: Forming farmer groups or cooperatives can improve the bargaining position of farmers in negotiating with entrepreneurs.
Improvement of Entrepreneur Insights: Entrepreneurs need to improve their insights and knowledge through courses or training to improve product quality and competitiveness in the market.
Increasing Access to Banking: Increasing access to banking can help entrepreneurs to improve their business scale.

Conclusion

The cassava cracker industry in Pancur Batu District has great potential to continue to develop. However, the main challenge faced is the availability of limited cassava raw materials. The solutions offered need to involve cooperation between entrepreneurs and cassava farmers. With joint efforts, the cassava cracker industry can continue to grow and become an economic driver in Pancur Batu District, as well as improving the welfare of the local community.

Recommendations

Based on the findings of this study, the following recommendations are made:

The government should provide support to cassava farmers by providing training and resources to improve their productivity and quality of cassava.
Entrepreneurs should establish cooperation with cassava farmers to increase the production and quality of cassava.
The government should provide access to banking and financial services to entrepreneurs to improve their business scale.
The industry should focus on improving product quality and competitiveness in the market through training and courses.

By implementing these recommendations, the cassava cracker industry in Pancur Batu District can continue to grow and become a significant contributor to the regional economy.

Introduction

The cassava cracker industry in Pancur Batu District, Deli Serdang Regency, has been a significant contributor to the regional economy. However, the industry faces challenges related to the availability of raw materials, particularly cassava. In this Q&A article, we will address some of the frequently asked questions related to the analysis of the demand for raw materials for the cassava cracker industry in Pancur Batu District.

Q: What are the main challenges faced by the cassava cracker industry in Pancur Batu District?

A: The main challenge faced by the cassava cracker industry in Pancur Batu District is the availability of limited cassava raw materials. The low plant population in the region and the lack of intensification practices among cassava farmers contribute to the low supply of cassava.

Q: What are the factors that influence the demand for raw materials for the cassava cracker industry?

A: The demand for raw materials is significantly influenced by prices, quality, and entrepreneur income. The price of cassava has a positive regression coefficient of 1.25 at a 5 percent testing level, indicating that demand remains high despite rising prices. The quality of cassava also has a significant effect on the demand for raw materials, with a regression coefficient of 0.21 at a 1 percent testing level.

Q: What are the causes of low cassava production in the region?

A: The low plant population in the region and the lack of intensification practices among cassava farmers are the main causes of low cassava production. The population of cassava plants is relatively low, making it difficult to meet the demand for the cassava cracker industry.

Q: What are the implications of the cassava cracker industry for regional development?

A: The cassava cracker industry contributes positively to the development of the Pancur Batu sub-district by improving the welfare of the community through increasing income. The industry absorbs local labor, providing a source of income for cassava farmers and traders.

Q: What are the solutions to overcome the challenges faced by the cassava cracker industry?

A: Several solutions can be implemented to overcome the challenges faced by the cassava cracker industry, including:

"Adoptive Father" Cooperation: Establishing cooperation between entrepreneurs and cassava farmers in the "adoptive father" system can help increase the production and quality of cassava.
Direct Processing by Farmers: Farmers can directly process cassava into cassava crackers to increase the added value of their crops.
Formation of Farmers/Cooperative Groups: Forming farmer groups or cooperatives can improve the bargaining position of farmers in negotiating with entrepreneurs.
Improvement of Entrepreneur Insights: Entrepreneurs need to improve their insights and knowledge through courses or training to improve product quality and competitiveness in the market.
Increasing Access to Banking: Increasing access to banking can help entrepreneurs to improve their business scale.

Q: What are the recommendations for the government and entrepreneurs to support the cassava cracker industry?

A: The government should provide support to cassava farmers by providing training and resources to improve their productivity and quality of cassava. Entrepreneurs should establish cooperation with cassava farmers to increase the production and quality of cassava. The government should also provide access to banking and financial services to entrepreneurs to improve their business scale.

Conclusion

The cassava cracker industry in Pancur Batu District faces challenges related to the availability of raw materials, particularly cassava. However, with the implementation of solutions and recommendations, the industry can continue to grow and become a significant contributor to the regional economy.