Agribusiness analysis of seed producer supports increased soybean production in East Java production centre areas

Figures & data

Figure 1. (a) (Above) Map of Indonesia. Source: https://berita.99.co/gambar-peta-indonesia/. (b) (Below) Map of East Java Province with 4 loci of study. Source: http://www.syncOnConnect_time=1177956727.

Table 1. Soybean seed producer research location in East Java, 2023.

Regency	Sub-district	Village
Nganjuk	Bagor	Banaran Kulon
		Banaran Wetan
		Tempuran
	Wilangan	Ngudikan
Bojonegoro	Dander	Dander Mojoranu
Banyuwangi	Purwoharjo	Grajagan
Blitar	Binangun	Binangun

Table 2. Characteristics of soybean seed producers and soybean farmers in East Java, 2023.

Description	Number of farmers (%)
	Soybean seed producers	Soybean farmers
Age (years)	41 (29–61)	52 (33–73)
Education:
Elementary	–	25
Junior High	–	25
Senior High	28.5	47.1
Diploma/Vocational	14.5	–
Bachelor degree	28.5	8.3
Master degree	28.5	–
Experience (years)	6 (2–8)	27 (3–48)
Number of family member (person)	3 (3–5)	3 (2–5)
Farming size (ha)	696	0.59 (0.1–2.0)

Table 3. High-yielding varieties grown in East Java, 2023.

Regency released varieties	Number of farmers (%)
Nganjuk Anjasmoro	70
Surya	30
Bojonegoro Anjasmoro	100
Banyuwangi Baluran	100
Blitar Anjasmoro	78
Wilis	13
Grobogan	9

Table 4. Use of certified soybean seeds in East Java, 2023.

Regency	Number of farmers (100%)
Nganjuk:
Certified seeds	17
Uncertified seeds	83
Bojonegoro:
Certified seeds	50
Uncertified seeds	50
Banyuwangi:
Certified seeds	50
Uncertified seeds	50
Blitar:
Certified seeds	100
Uncertified seeds	–

Table 5. Cost of production of certified soybean seeds in East Java, 2023.

Cost components	For seed purposes		For consumption purposes
	Total (IDR)	Per ha (IDR)	Total (IDR)	Per ha (IDR)
Field inspection	5,570,000	8,000 (0.05%)	400,000	8,000
Seeds purchasing	9,905,000	13,561,468 (92.37%)	825,000	825,000
Drying, sorting, packing	769,642,000	1,083,000 (7.38%)	65,550,000	1,311,000
Laboratory testing, certification	12,152,250	17,106 (0.12%)	1,035,000	20,700
Plastic packaging	8,101,500	11,404 (0.08%)	690,000	13,800
Total	10,701,416,250	14,681,364 (100%)	892,675,000	17,853,500

Table 6. Financial feasibility of soybean seed producer in East Java, 2023.

Components	For seed purposes	For consumption purposes
Partnership land area (ha)	962	50
Realized land area (ha)	696	50
Productivity (t/ha)	1.23 (0.89–1.55)	1.50
Production (t)	880	75
Seed lost (t)	69	6
Remaining Production (t)	810	69
Price (IDR/kg)	IDR 16,625/kg	IDR 16,000/kg
Revenue from selling seeds (IDR)	IDR 13,957,200,000 (IDR 19,311,321/ha)	–
Revenue from sales of consumption (tofu, tempeh, bean sprouts, feed) (IDR)	IDR 379,525,000	–
Total of revenue from seeds and consumption (IDR)	IDR 14,336,725,000 (IDR 19,872,745/ha)	–
Revenue from selling of consumption (Nestle, Unilever) (IDR)	–	IDR 1,104,000,000 (IDR 22,080,000/ha)
Production costs (IDR)	IDR 10,701,416,250 (IDR 14,681,364/ha)	IDR 892,675,000 (IDR 17,853,500/ha)
Profit (IDR)	IDR 3,635,308,750 (IDR 5,191,380/ha)	IDR 211,325,000 (IDR 4,226,500/ha)
R/C ratio	1.34	1.23
Production Breakeven Point	883	1115
Price Breakeven Point	12,160	11,902

Table 7. Costs of production facilities and labour for soybean farming per ha in East Java, 2023.

Components	Costs of seed production (IDR/ha)
Production facilities:
Seeds	773,213
Fertilizer (Urea, ZA, Ponskha, pupuk kandang)	2,201,996
Pestisida dan herbisida	916,993
Subtotal	3,892,202
Labour:
Land preparation	2,339,861
Planting	984,637
Fertilizer application	446,097
Plant protection (pesticide)	722,742
Weeding (herbicide)	447,103
Water irrigation	20,714
Harvest	917,652
Post-harvest	1,219,375
Sub-t o t a l	7,098,181
Total production cost	10,969,669

Table 8. Financial analysis of soybean farming in East Java, 2023.

Components	Seed production
Production facilities cost of (IDR/ha)	3,892,202
Labour cost (IDR/ha)	7,077,467
Total of production cost (IDR/ha)	10,969,669
Productivity (kg/ha)	1432
Seed price (IDR/kg)	10,701
Revenue (IDR/ha)	13,309,445
Profit (IDR/ha)	2,339,776
R/C	1.2
Production Breakeven Point (kg/ha)	1025
Price Breakeven Point (IDR/kg)	7660

Table 9. Identification of internal and external factors of soybean producer farming in East Java, 2023.

No.	Internal factors		External factors
	Strengths	Weaknesses	Opportunities	Threats
a	Profitable business	Requires a lot of money	Availability of Government assistance program (quality seeds, fertilizer, medicine)	Cost of producing high-quality seeds
b	Long experience in soybean farming	Post-harvest handling is less than optimal	Market available, demand for high-quality seeds	Government assistance seed program is uncertain
c	There is always soybean planting	The growth capacity of soybeans is rapidly decreasing	The price of high-quality seeds	There is no definite market guarantee
d	Enables continuous soybean seed production	Farmers’ soybean cultivation techniques are less than optimal	Opportunities to become producers are open	There is no guaranteed price yet
e	There are superior varieties and cultivation technology			many imported soybean available
f	There a farmer group

Table 10. Urgency matrix of internal (strengths and weaknesses) and external factors (opportunities and threats) for developing soybean seed farming in East Java, 2023.

No.	Factors	a	b	c	d	e	f	g	h	i	J	Total	%
	Strengths (S)
a	Profitable business	x	a	a	a	a	a	a	i	j	a	7	17.07
b	Quite a long experience in soybean business	a	x	c	d	b	b	b	h	i	j	3	7.32
c	There is always soybean planting	a	c	x	d	e	c	c	h	i	j	3	7.32
d	Allows continuous seed production	a	d	d	x	d	d	d	h	i	j	5	12.20
e	Superior varieties and cultivation technology are available	a	b	c	d	x	f	e	h	i	e	2	4.88
f	There are farmer groups	a	b	c	d	f	x	g	h	i	j	1	2.44
											Σ	21	51.22
	Weaknesses (W)
g	Requires a lot of money	a	b	c	d	e	g	x	h	i	j	1	2.44
h	post-harvest handling is less than optimal	i	h	h	h	h	h	h	x	h	h	8	19.51
i	The growth capacity of soybeans quickly decreases	j	i	i	i	i	i	i	j	x	j	6	14.63
j	Farmers’ soybean cultivation techniques are less than optimal	a	j	j	j	e	j	j	h	i	x	5	12.20
											Σ	20	48.78
									Σ Subtotal			41	100.00
	OPPORTUNITIES (O)
a	There is a government program (seeds, quality, fertilizer, pesticide)	x	a	c	a	a	a	a	a	a		7	18.92
b	Market is available, demand for high-quality seeds	a	x	c	b	b	b	b	b	b		6	16.22
c	High-quality seed prices	c	c	x	c	c	c	c	c	c		8	21.62
d	The opportunity to become a seed producer is open	a	b	c	x	d	d	d	d	d		5	13.51
											Σ	26	70.27
	THREATS (T)
e	High Cost of producing quality seeds	a	b	c	d	x	f	g	h	i		0	0.00
f	government seed programs are uncertain	a	b	c	d	f	x	g	h	f		2	5.41
g	There is no definite market guarantee yet	a	b	c	d	g	g	x	g	g		4	10.81
h	There is no definite price guarantee yet	a	b	c	d	h	h	h	x	h		4	10.81
i	Imported soybeans are widely available	a	b	c	d	i	f	g	h	x		1	2.70
											Σ	11	29.73
								Σ Grand total				37	100.00

Table 11. Linkage Matrix -SWOT of soybean seed production farming 2023.

	Factor				Linkage																						∑TNB
No	Strengths (S)	FW (%)	BV	WBV	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	ALV	LWV	TWV	4.2529
1	Profitable business	17.0	5	0.850	0	5	5	5	5	2	2	5	5	5	5	5	5	5	4	4	3	3	2	3.95	0.67	1.52
2	Quite a long experience in soybean business	7.3	5	0.365	5	0	5	5	5	2	2	5	5	5	5	5	5	5	3	3	1	1	1	3.58	0.26	0.63
3	There is always soybean planting	7.3	5	0.365	5	5	0	5	5	2	2	2	2	4	5	5	5	5	2	2	2	2	1	3.21	0.23	0.60
4	Allows continuous seed production	12.2	5	0.61	5	5	5	0	5	2	2	2	2	2	5	5	5	5	2	2	2	2	1	3.11	0.38	0.99
5	Superior varieties and cultivation technology are available	4.9	5	0.245	5	5	5	5	0	2	1	3	3	4	5	5	5	5	2	3	2	2	1	3.32	0.16	0.41
6	There are farmer groups	2.4	3	0.072	3	2	2	2	2	0	1	1	1	1	4	2	1	2	1	2	1	1	1	1.58	0.04	0.11
	Weaknesses (W)																										3.8344
7	Requires a lot of money	2.5	3	0.075	2	2	2	2	1	1	0	2	2	2	4	4	4	4	3	3	1	1	1	2.16	0.05	0.13
8	post-harvest handling is less than optimal	19.5	5	0.975	5	5	2	2	3	1	2	0	5	5	5	5	5	5	2	3	1	1	1	3.05	0.60	1.57
9	The growth capacity of soybeans quickly decreases	14.7	5	0.735	5	5	2	2	3	1	2	2	0	5	4	5	5	5	2	3	1	1	1	2.84	0.42	1.15
10	Farmers’ soybean cultivation techniques are less than optimal	12.2	5	0.61	5	5	4	2	4	1	2	5	5	0	5	5	5	5	1	1	1	1	1	3.05	0.37	0.98
	OPPORTUNITIES (O)																										6.2444
11	There is a government program (seeds, quality, fertilizer, pesticide)	18.9	5	0.945	5	5	5	5	5	4	4	5	4	5	0	5	5	5	4	3	3	3	1	4.00	0.76	1.70
12	Market is available, demand for high-quality seeds	16.3	5	0.815	5	5	5	5	5	2	4	5	5	5	5	0	5	5	4	4	1	1	1	3.79	0.62	1.43
13	High-quality seed prices	21.6	5	1.08	5	5	5	5	5	1	4	5	5	5	5	5	0	5	3	3	3	3	1	3.84	0.83	1.91
14	The opportunity to become a seed producer is open	13.5	5	0.675	5	5	5	5	5	2	4	5	5	5	5	5	5	0	3	3	3	3	1	3.89	0.53	1.20
	THREATS (T)																										1.3699
15	High Cost of producing quality seeds	0	3	0	4	3	2	2	2	1	3	2	2	1	4	4	3	3	0	1	1	1	1	2.11	-	-
16	government seed programs are uncertain	5.4	3	0.162	4	3	2	2	3	2	3	3	3	1	3	4	3	3	1	0	1	1	1	2.26	0.12	0.28
17	There is no definite market guarantee yet	10.8	3	0.324	3	1	2	2	2	1	1	1	1	1	3	1	3	3	1	1	0	1	1	1.53	0.16	0.49
18	There is no definite price guarantee yet	10.8	3	0.324	3	1	2	2	2	1	1	1	1	1	3	1	3	3	1	1	1	0	1	1.53	0.16	0.49
19	Imported soybeans are widely available	2.7	3	0.081	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	0	1.00	0.03	0.11

Note: Score 5 = very related; Value 4 = related; Score 3 = quite related; Score 2 = less related; Value 1 = very little related.

FW = Factor weight; BV = Base value; WBV = Weighted Base Value = (FW/100) x BV;

ALV = Average Linkage Value = Linkage Value/17

LWV = Linkage Weight Value = (FW/100) x ALV; TWV = Total Weight Value = WBV + LWV.

Figure 2. Results of SWOT analysis in a map of four effort quadrants development of soybean seed producer farming in East Java.

Table 12. Selected internal and external factors to determine the development strategy for soybean seed producer in East Java, 2023.

No.	Internal and external factors	Description	Total weight value
1	Strengths	Profitable business	1.52
2	Weaknesses	Post-harvest handling is less than optimal	1.57
3	Opportunities	High-quality seed prices	1.91
4	Threats	There is no definite market guarantee yet	0.49

Table 13. Strategy for efforts to develop soybean seed farming in East Java, 2023.

	Strengths (S): Profitable business	Weaknesses (W): Post-harvest handling is less than optimal
Opportunities (O): High-quality seed prices	- Develop the soybean seed producers in each production center area, so that they can meet seed needs in a timely manner, quantity, variety, agroclimate, quality and price. So that it can fulfil the wishes of local farmers and reduce the risk of rapid decline in growth capacity - In post-harvest handling that is less than optimal, field officers are assisted by producers; as well as providing increased skills and knowledge to partner farmers - Policy makers/relevant departments to develop seed producers/empower seed producers and help with post-harvest facilities (drying floors, dryers, warehouses, cooling rooms)
Threats (T): There is no definite market guarantee yet