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Journal of Management & Agribusiness , Volume 12, Issue 3, 2015, pp. 194-203

PENGARUH KEMITRAAN TERHADAP RISIKO USAHA TANI TEMBAKAU DI KABUPATEN BOJONEGORO PROVINSI JAWA TIMUR

Abstract :

The tobacco farming faces many risks, especially, price and production risk. Farmers mitigate these risks by conducting contract farming with PT. Gudang Garam, Tbk. The objectives of this study were 1) to analyze the production risks of tobacco farmers and the effect of contract farming on the risks of tobacco farming in Bojonegoro district; 2) to analyze the price risk of tobacco farmers. The data used in this study were cross section data of 120 growers of tobacco consist of 60 farmers who do contract farming and 60 non-contract farming. Just and Pope model was used to analyze the production risk and the coefficient variation was used to analyze the price risk. The results showed that 1) the production risk faced by farmers who do contract farming is lower than non-contract farming and the contract farming had statistically an significant effect to reduce the risks of tobacco farming; 2) Farmers who undertake contract farming has a lower price risk than non-contract farming. Development of tobacco farming in Bojonegoro still need contract farming to mitigate risks. 

Keywords : tobacco, production risk, price risk, contract farming
Subject Area : Accounting Business, Management and Accounting (miscellaneous) Marketing Social Sciences (miscellaneous) Strategy and Management

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