Analysis of Potato Agribusiness Subsystem in Karo Regency

Oct 13, 2025 by vinooalluri.com 133 views

Factors that Influence the Development of Potato Commodity Agribusiness Centers and their Impact on Regional Development in Karo Regency

Introduction

Karo Regency in North Sumatra is renowned as the largest potato production center in the province, with this commodity serving as the backbone of the regional economy. The demand for potatoes is not only met domestically but also exported to other markets. This research aims to explore the factors that influence the development of potato agribusiness centers in Karo Regency and their impact on regional development.

Analysis of Potato Agribusiness Subsystem in Karo Regency

The performance of potato agribusiness in Karo Regency is fairly good, with the average potato production reaching 7.3 to 12.0 tons per hectare in 1998. The revenue generated from potato farming was approximately Rp. 15,651,368 per hectare. However, a trend of decreased volume and export value of potatoes between 1995 and 1999 was observed. This indicates a significant potential and opportunity that can be further explored in the development of potato agribusiness in Karo Regency.

The potato agribusiness subsystem in Karo Regency can be analyzed through various factors, including:

Production: The average potato production in Karo Regency is relatively high, with a significant contribution to the regional economy.
Marketing: The marketing of potatoes in Karo Regency is primarily focused on domestic markets, with a limited presence in export markets.
Technology: The use of superior potato varieties and modern farming techniques can improve the production and quality of potatoes.
Infrastructure: The availability of infrastructure, such as roads and storage facilities, is crucial for the efficient transportation and storage of potatoes.

Impact of Potato Agribusiness Development on Regional Development

The development of potato agribusiness in Karo Regency has made a significant contribution to the regional economy. This commodity has contributed 46.96% to total potato production in North Sumatra. However, the contribution to Karo Regency's Gross Regional Domestic Product (GRDP) is still relatively low, with a contribution of 11.38% to the agricultural sector and 13.79% of food plants.

The impact of potato agribusiness development on regional development can be analyzed through various indicators, including:

Economic growth: The development of potato agribusiness has contributed to the economic growth of Karo Regency.
Employment: The potato agribusiness sector has created employment opportunities for local residents.
Income: The revenue generated from potato farming has improved the income of farmers and their families.
Food security: The development of potato agribusiness has improved food security in Karo Regency.

Challenges and Recommendations

This research has revealed several challenges in the development of potato agribusiness centers in Karo Regency, including:

Inequality of farmers' income: The Gini Ratio coefficient of 0.38 indicates moderate inequality among farmers.
Limited market access: The limited presence of potato agribusiness in export markets has restricted the revenue generated from potato farming.
Inadequate infrastructure: The lack of infrastructure, such as roads and storage facilities, has hindered the efficient transportation and storage of potatoes.

To overcome these challenges, several recommendations can be applied, including:

*** Partnership and market improvement: ** Government and private entrepreneurs need to work together to open a wider and foreign domestic market, thereby increasing the selling value of potatoes and the welfare of farmers. *** Agroindustry development: ** Potato processing into derivative products such as potato chips, french fries, and potato flour can increase added value and open new market opportunities. The development of potato processing agro -industry also needs to be prioritized. *** Improvement of technology and cultivation: ** The development of potato technology and cultivation, such as the use of superior varieties, needs to be done to improve the production and quality of potatoes, especially to meet export standards. *** Consumer education: ** It is essential to educate consumers to better understand the nutritional value of potatoes and encourage the consumption of potatoes as a food substitute for rice, with attractive processing variations.

Conclusion

The development of potato agribusiness centers in Karo Regency has a great potential to become a mainstay sector that encourages economic growth and community welfare in the region. However, several challenges need to be addressed, including inequality of farmers' income, limited market access, and inadequate infrastructure. By implementing the recommendations outlined in this research, the potato agribusiness sector in Karo Regency can be developed sustainably and contribute to the regional economy.

Recommendations for Future Research

This research has identified several areas for future research, including:

In-depth analysis of the potato agribusiness subsystem: A more detailed analysis of the potato agribusiness subsystem in Karo Regency is necessary to identify the key factors that influence its development.
Impact of potato agribusiness development on regional development: A more comprehensive analysis of the impact of potato agribusiness development on regional development is necessary to identify the key indicators of economic growth, employment, income, and food security.
Development of potato processing agro-industry: The development of potato processing agro-industry is crucial for increasing added value and opening new market opportunities.

By addressing these research gaps, this study can contribute to the development of a more sustainable and equitable potato agribusiness sector in Karo Regency.
Frequently Asked Questions (FAQs) about the Development of Potato Commodity Agribusiness Centers in Karo Regency

Q: What is the significance of potato agribusiness in Karo Regency?

A: Potato agribusiness is a significant sector in Karo Regency, contributing 46.96% to total potato production in North Sumatra. It is a backbone of the regional economy, providing employment opportunities and improving the income of farmers and their families.

Q: What are the challenges faced by potato agribusiness in Karo Regency?

A: The challenges faced by potato agribusiness in Karo Regency include inequality of farmers' income, limited market access, and inadequate infrastructure. These challenges hinder the efficient transportation and storage of potatoes, limiting the revenue generated from potato farming.

Q: What are the recommendations for overcoming the challenges faced by potato agribusiness in Karo Regency?

A: The recommendations for overcoming the challenges faced by potato agribusiness in Karo Regency include:

Partnership and market improvement: Government and private entrepreneurs need to work together to open a wider and foreign domestic market, thereby increasing the selling value of potatoes and the welfare of farmers.
Agroindustry development: Potato processing into derivative products such as potato chips, french fries, and potato flour can increase added value and open new market opportunities. The development of potato processing agro -industry also needs to be prioritized.
Improvement of technology and cultivation: The development of potato technology and cultivation, such as the use of superior varieties, needs to be done to improve the production and quality of potatoes, especially to meet export standards.
Consumer education: It is essential to educate consumers to better understand the nutritional value of potatoes and encourage the consumption of potatoes as a food substitute for rice, with attractive processing variations.

Q: What is the potential of potato agribusiness in Karo Regency?

A: The development of potato agribusiness centers in Karo Regency has a great potential to become a mainstay sector that encourages economic growth and community welfare in the region. By implementing the recommendations outlined in this research, the potato agribusiness sector in Karo Regency can be developed sustainably and contribute to the regional economy.

Q: What are the areas for future research?

A: The areas for future research include:

In-depth analysis of the potato agribusiness subsystem: A more detailed analysis of the potato agribusiness subsystem in Karo Regency is necessary to identify the key factors that influence its development.
Impact of potato agribusiness development on regional development: A more comprehensive analysis of the impact of potato agribusiness development on regional development is necessary to identify the key indicators of economic growth, employment, income, and food security.
Development of potato processing agro-industry: The development of potato processing agro-industry is crucial for increasing added value and opening new market opportunities.

Q: What are the benefits of developing potato agribusiness in Karo Regency?

A: The benefits of developing potato agribusiness in Karo Regency include:

Economic growth: The development of potato agribusiness can contribute to the economic growth of Karo Regency.
Employment: The potato agribusiness sector can create employment opportunities for local residents.
Income: The revenue generated from potato farming can improve the income of farmers and their families.
Food security: The development of potato agribusiness can improve food security in Karo Regency.

Q: What are the recommendations for policymakers and stakeholders?

A: The recommendations for policymakers and stakeholders include:

Supporting the development of potato agribusiness: Policymakers and stakeholders should support the development of potato agribusiness in Karo Regency by providing necessary infrastructure and resources.
Implementing policies to promote potato agribusiness: Policymakers and stakeholders should implement policies to promote potato agribusiness, such as providing incentives for farmers to adopt modern farming techniques and improving market access.
Monitoring and evaluating the impact of potato agribusiness development: Policymakers and stakeholders should monitor and evaluate the impact of potato agribusiness development on regional development to ensure that the sector is developed sustainably and equitably.