Green Cayenne Pepper Production and Marketing Collaboration to Increase Farmer’s Income In East Lombok Regency, West Nusa Tenggara

Abstrak


INTRODUCTION
and (3) limited green cayenne pepper supply. A significant price fluctuation resulted in lower green cayenne pepper price (it could be reached IDR 4,000/kg), which also caused low profit or loss on the farmer party. This study aimed to: 1) know the form of green cayenne pepper production and marketing collaboration; 2) know the farmer income during managing the green cayenne pepper agribusiness.

Approach, Location, and Study Duration
The survey method was applied in this study to observe the cayenne pepper production and marketing collaboration system in East Lombok Regency, West Nusa Tenggara. The data collection was performed in March 2017 until March 2018.

Study Location and Participant
The study location was chosen based on the purposive sampling technique. The location selected were Suralaga District and Pringgasela District which having the largest green cayenne pepper cultivation area. The primary data sources were all participants who working as a farmer, distributor on the village area, and distributor on the district area which engaged in the green cayenne pepper production and marketing collaboration. According to the purposive sampling technique used, 15 farmers and 15 distributors were chosen to be interviewed in this study.

Data Type and Data Collection
The data type collected in this study was the primary data. Data collected from the farmer were the size of the land, type of business, the type and number of production facilities, price and cost for using the production facilities, labors fee, remuneration system and labor's fee for the harvesting period, frequency of the harvesting period, cayenne pepper production, selling price, and marketing cost. While the data collected from the distributor on the village and district area were: the collaboration form and system, type of production facilities used, the amount of loan, duration of load repayment, collaboration rule, and purchasing price. The data was collected through observations, taking transcription notes, and in-depth interviews.

Data Analysis
To address the study aim, the data analysis approach used was blending between the quantitative and qualitative analysis. The quantitative analysis was supported by the qualitative analysis approach (Taskkori and Teddlie, 1998).
To know the farmer income, an agribusiness cost analysis has to be performed. This type of analysis was using descriptive statistical analysis through a cost calculation during cultivating the green cayenne pepper. The farmer income was equal to the difference between the payment accepted by the farmer and the cost used during cultivating the green cayenne pepper. The payment accepted by the farmer multiplied by the green cayenne pepper production. These could be explained by the formula: TR = P x Q, where TR = payment accepted, P = price, and Q = production. The farmer income was calculated using the formula of: PdU = TR -TC, where the PdU = green cayenne pepper income; TR = the payment accepted, and TC = total cost used during cultivating the green cayenne pepper. SOCA: Jurnal Sosial Ekonomi Pertanian https://doi.org/10.24843/SOCA.2020.v14.i02.p05 243

Green Cayenne Pepper Production and Marketing Collaboration
The most cayenne pepper farmer in East Lombok regency was having a limited fund for cultivation with the small size of cultivated land of 0.20-0.30 ha. A strategy applied by the farmer to deal with this condition was by cultivating vegetables, especially cayenne pepper which relatively high demanded by the market parties. They assumed that cayenne pepper cultivation was able in producing a high amount of profit which usually ranged between IDR 8,000-12,000/kg. A price disparity also possible to happen if some regions outside the Lombok was in harvesting periods. A high volume of cayenne pepper produced during these harvesting periods caused a significant decrease in its price. The price could reach IDR 4,000/kg which was occurred on the Juni-Juli 2017.
The significant decrease in the cayenne pepper price is affected by the cultivation pattern and the total of cayenne pepper cultivated. Another strategy arranged was to collaborate with the distributor in green cayenne pepper cultivation out of the usual season. But the hindrances in implementing this strategy was the limitation of the capital used to cultivate the cayenne pepper due to the application of plastic mulch and some medications.
Some distributors in Suralaga and Pringgasela was offered the cayenne pepper production and marketing collaboration to the farmers. Collaboration could be defined as an activity conducted in a productive cooperation network that producing benefits in the parties. The cayenne pepper production and marketing collaboration was could be classified into a productive economic collaboration between the distributor and the farmer. Through this collaboration a distributor could provide a fund for cayenne pepper cultivation to 50-100 farmers. A distributor also providing or done a nursery of the cayenne pepper seed. The form of collaboration was: capital loan without interest for the production facilities, supporting devices (medications, fertilizer, pepper seed, plastic mulch), and labors' fee with the total of IDR 3,000,000-5,500.000 or depended on the need and the total of land cultivated by the farmer. This type of collaboration is also named as supply chain management (SCM) is able in improving the efficiency and level of competitiveness and a sustainable production (Lokollo 2012;Anwarudin, et al, 2015). A sustainable cayenne pepper production is also required a reinforcement that could be done through the implementation of the cultivation calendar. Silmi and Lindawati (2015) stated that the improvement of the production volume using the cultivation calendar would assure the production sustainability and competitiveness. The cayenne pepper production and marketing collaboration conducted based on trust and social norms agreed by both parties. The distributor was providing facilities during the cayenne pepper production in the form of money and production facilities. A Study done by Ferry and Hidayata (2016) found that if the farmer fail to produce the cayenne pepper, the distributor will not asking the farmer to give the money back. A collaboration created by a strong social capital would improve the social relation between the farmer and the distributor. Furthermore, the strong social capital in the also could improve productivity and maintain an agricultural business. Cahyono (2014) stated that trust and support originally existed on the villagers as their social capital. Similiar with this finding, Anggita (2013) stated that trust and norm in social capital is an important component in supporting a social relationship. Putnam (1995) explained that the social capital refers to three components: (1) social network for communication and coordination, (2) trust, and (3) norm for social regularity in a group of people. Trust is the most important component that contributed to strengthening the sustainable production and marketing collaboration. Collaboration on the social capital concentrating on the social relation between a farmer with some type of group (ex: farmer group institution).  stated that in a collaboration, the social relation was tied by a trust, while the trust was tied by the social norms.
After the harvesting period, the farmer must sell the cayenne peppers to the distributor who was giving them the fund to cultivate the cayenne peppers. The price was set according to the price decided by the seller in the Kramat Jati Jakarta market, Batam, and other provinces in Indonesia. The loan was paid by the farmer slowly during the harvesting period.

The Green Cayenne Pepper Payment Accepted (Reception) Analysis
The cayenne pepper production in East Lombok, West Nusa Tenggara was still categorized in a low-level production because only reach 11.34 ton/ha ( Table 2). The declining on the cayenne pepper production happened due to some factors: 1) pest attack during the rainy season; 2); low level of soil fertility rate; and 3) the low quality of cayenne pepper seed provided by agricultural distributor.
The total payment accepted by the farmer was the result of the production volume multiplied by the selling price (Soekartawi, 2002). Permadi, et al (2017) defined that payment accepted by the farmer was the amount of cayenne pepper produced multiplied by the price on the farmer level. The payment accepted (reception) was the gross income accepted by the farmer according to the harvesting frequency. In each harvesting period, the cayenne pepper price was declining as shown in Table 2. The price kept declining because the selling price in Kramat Jati Jakarta was also declining. This could be happened due to the high volume of cayenne pepper transferred from some regions in Indonesia.
The highest cayenne pepper price in East Lombok, West Nusa Tenggara happened on the first until the fourth/fifth week of February until the fourth week of March 2017. The mean of the farmer gross income in the rainy season (early February) until June 2017 was IDR 243,210,000/ha.

Production Cost Analysis
The production cost is the use of the production facilities, labors fee, and other costs for the production of a certain commodity. The agribusiness cost was the total of value spent by the farmer during the production process that included facilities production cost, the cost spending to buy agricultural devices, and labors fee. Istiyanti et al., (2015) classified the production cost into two types: (1) implicit cost production, non-real amount of cost used by the farmer during the production, and (2) explicit cos production real amount cost use by the farmer during the production.
Cost analysis used to calculate the amount of profit and income obtained by the farmer. The fee paid to the family who was working as the labor paid based on the standard of the remuneration used in the East Lombok. In this study, some production costs: production procurement cost, some supporting fund, labors fee before and during the harvesting period. The labor fee before the harvesting period is paid per day based on the working duration, while labor's fee during the harvesting period was paid according to the harvesting volume production and the cayenne pepper price set during that period.

Production Facilities Cost
The production facilities cost used in managing the cayenne pepper is quite high. The procurement cost for the production facilities consisted of seed purchasing cost, fertilizer procurement cost, and medication procurement cost with the total of IDR 11,916,667/ha (Table 3). Production facilities were the main factor that must be existed during the production process. Production facilities used closely related to the technological components used in the cayenne pepper production. The amount SOCA: Jurnal Sosial Ekonomi Pertanian https: //doi.org/10.24843/SOCA.2020.v14.i02.p05 246 and type of the production facilities used in the cayenne pepper production was arranged according to the components and technological elements used by the farmer, such as the use of NPK fertilizer, SP 6 fertilizer, organic fertilizer, and PPC fertilizer which reached IDR 6,133,333/ha or covering 51.47 % from the total of production facilities cost. The medication procurement cost was the main cost allocated by the farmer in the production facilities cost. This medication procurement cost covering 33.85 % of the total production facilities cost.

Supporting Fund and Other Funds
Supporting funds used in the cayenne pepper production was including the procurement of some tools such as a pole, plastic rope, plastic mulch, and plastic sack. The total of funds used on the supporting production requirements was higher than the production facilities fund that able to reach IDR 15,380,000/ha (Table 4). In one hectare, 20 rolls of good quality plastic mulches were required. Some rolls also could be used in the next harvesting period. Other funds used to support the cayenne pepper production included some of the supporting requirements such as food, drink, cigarette, and snack with a total of IDR 6,216,667/ha ( Table 5). The limited human resources before and during the harvesting period was the major reason for the farmer in providing food and drink for the labor. Food and drink provided by the farmer were capable of decreasing the chance of the labor on moving to another farmer before and during the cayenne pepper harvesting period.

Labor Remuneration before Harvesting Period
The labor remuneration before the harvesting period was the amount of cost paid since the land preparation until the implementation of integrated pest management. All type of work before the harvesting period such as land preparation, land clearance, tillage, mound making, the dolomite administration, the installation of plastic mulch, the installation of the planting hole, the installation of pole, cultivation, fertilization, weeding, stitching, and its pest management was paid per day. The amount of fee paid by the farmer before the harvesting period was IDR 70.000/day for each labor. But, the laborers were mostly working for 4-5 hours/day, therefore they only paid for Rp IDR 35.000/day. The labor usually working from 07.00 am until 12.00 pm or from 1.00 p.m or 5.00 pm.
The amount of cost for the labor before the harvesting period was similar to the cost spent during the harvesting period. The cost was quite high as shown in Table  5 (IDR 22,866,667/ha). Some activities that spent a lot of cost were tillage, the mound making, plastic mulch installation, cultivation, weeding, and fertilization.

Harvesting Labors Remuneration
The cayenne pepper harvesting period in a cultivation system was ranged between 10-15 times or once a week. The remuneration system used was different from another commodity agricultural remuneration system. The system used in East Lombok, West Nusa Tenggara was multiplied the volume of cayenne pepper produce with the price percentage as agreed by the farmer and the labor. The mean fee accepted by the labor was ranged between 10 %-43 % from the cayenne pepper price set during the harvesting period. If the cayenne pepper price decreasing, the labor's fee would increase. It could be illustrated by the cayenne pepper prices on the fourth week in February 2017 which reach IDR 30,000/kg. According to the price, the fee accepted by the labor was 10% from the cayenne pepper price (IDR 3, 000/kg) which then multiplied by the total cayenne pepper produced on the harvesting period (833.33 kg), therefore the total of fee accepted by the labor during the harvesting period was IDR 2,500,000 (Table 6).

Income and Green Cayenne Pepper Profit Analysis
Agricultural income was defined as the payment for the production and service use during the production process in producing an agricultural commodity. Soekartawi (2006) stated that the income was the difference between the payment and the production cost. An efficiency indicator used was the amount of acceptance for each rupiah used as the payment (revenue cost ratio or R/C ratio). The Return Cost (R/C) ratio analysis is a ratio between the reception and cost (Rahim dan Hastuti, 2008); Husni et al., 2014). This analysis employed to know the relative agribusiness profit based on the financial calculation. R/C ratio shows the amount of reception accepted by the farmer in comparison with the cost spent. Soekartawi (2006) stated that R/C is a ratio between the reception and cost. The calculation done was found that the R/C ratio was 3.04 (Table 7) that indicated the green cayenne pepper business is profitable. An addition of IDR 1.0 produces the reception as much as IDR 304.  //doi.org/10.24843/SOCA.2020.v14.i02.p05 250

CONCLUSION
The collaboration on the green cayenne pepper production and marketing between the farmer and the distributor aimed to create a sustainable green cayenne pepper and improving their competitiveness in the marketing aspect. This sustainable collaboration was conducted based on a strong social capital/capital.
The green cayenne pepper price on the farmer level was determined by the price on the distributor level (Kramatjati). The communication between the seller on the market level with the distributor in informing the green cayenne pepper price was the form of collaboration in the marketing aspect.
The green cayenne pepper prices affected the amount of the harvesting volume and its distribution system. The prices usually were higher outside the harvesting period than in the harvesting period.
The profit of the green cayenne pepper was reaching IDR 163,170,000/ha/ harvesting season, which also depends on the pepper prices in the market. The profit was higher outside the harvesting period than in the harvesting period.
The price differences between the farmer and the distributor were IDR 3,650/kg which could be categorized as normal price differences. It could be higher due to the high cost spent to sell the green cayenne pepper outside Java Island.

RECOMMENDATION
A sustainable green cayenne pepper production and marketing collaboration still requiring a stronger social relationship and social capital. Support from the government is also demanded in managing the green cayenne pepper's price and its sustainable production and marketing.