E3S Web Conf.
Volume 232, 2021International Conference on Agribusiness and Rural Development (IConARD 2020)
|Number of page(s)||9|
|Published online||25 January 2021|
Investment risk management for vanilla agribusiness development in Indonesia
Indonesian Center for Estate Crops Research and Development, Bogor, Indonesia
* Corresponding author: email@example.com
Indonesia's position as the world's largest vanilla producer has been replaced by Madagascar. This condition is caused by the declining quality of Indonesian vanilla. Competitiveness is related to the degree of transformation determined by investment capital, technology availability, and managerial ability. Limited investment is one of the characteristics of vanilla development in addition to high business risk and low technology adoption. It is affected by risk perceptions in production and investment behaviour of farmers. This study aims to analyse investment risks in the development of vanilla agribusiness and formulate investment risk mitigation strategies. The analysis uses Risk Matrix Analysis by measuring the degree of severity and probability, and the Analytical Hierarchy Process to assess the strategy. Agribusiness investment is an important element and catalyst to agricultural development. The risks of vanilla agribusiness investment are not only determined by risks arising from the financial aspect but also influenced by technical aspects. They are divided into production risk, price or market risk, financial risk, institutional risk, and human or personal risk. Risk mitigation strategies can be divided into on-farm strategies and share risk strategies. Stem Rot disease, vanilla theft, and price fluctuation are the most important risk in vanilla agribusiness investment.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Current usage metrics show cumulative count of Article Views (full-text article views including HTML views, PDF and ePub downloads, according to the available data) and Abstracts Views on Vision4Press platform.
Data correspond to usage on the plateform after 2015. The current usage metrics is available 48-96 hours after online publication and is updated daily on week days.
Initial download of the metrics may take a while.