RISK MANAGEMENT ANALYSIS OF THE BABY BEANS (PHASEOLUS VULGARIS L.) BUSINESS (CASE STUDY: LEMBANG AGRI COOPERATIVE - ASIA AGRO LTD)

• Main Author: Julia Markhamah, Nadya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84712
• Institution: Institut Teknologi Bandung

Baby beans are Indonesia's leading export commodity with production centers in West Java. Lembang sub-district is one of the baby bean producing areas in West Java. Lembang Agri is an agribusiness located in Cikidang Village, Lembang Subdistrict with baby beans as one of its commodities. Lembang Agri has been exporting baby beans since 2010 and can ship 400 - 1 ton kg in one shipment and in one week there are 3 shipments. Currently, Lembang Agri is in partnership with Asia Agro for the export of baby beans to Singapore. The partnership between Lembang Agri and Asia Agro covers the farming process from upstream to downstream, i.e. the preparation stage of cultivation to product harvest is done by Lembang Agri and the post-harvest stage to delivery is done by Asia Agro. Like any other business in general, the baby bean production activities from upstream to downstream have risks that have the potential to reduce the profits earned by Lembang Agri and Asia Agro. The existence of various risks faced in this baby bean farming business requires risk analysis and management of agricultural businesses. Strategies in risk management are needed to better adapt to the bad possibilities that may occur. This research is a case study of Lembang Agri and Asia Agro. In this study, qualitative descriptive analysis was conducted to explain the description of business, activities and production risks and quantitative analysis using House of Risk (HOR) I and II to calculate agricultural risks and mitigation measures. Based on the results of HOR I, there are 19 dominant sources of risk, in order from first to fifth, namely expensive production needs (6.95%), limited labor (6%), seeds attacked by pests and diseases (5.45%), unpredictable weather (4.92%), and low seed quality (4.38%). Also, 42.85% of the dominant risks are human resource aspects, 29.42% are production, 18.93% are financial, and 8.80% are pricing aspects. Then at Asia Agro, there are 10 dominant sources of risk, namely less than optimal handling of land pests (14.50%), transportation of products using plastic or bags (10.72%), products exposed to excessive heat during transportation to packing house (9.99%), sorting errors (9.73%), and errors during harvesting (6.71%); moreover, 64.48% of the dominant risks are aspects of production and 35.52% of human resources. Based on the HOR II analysis, there are 10 mitigation actions for Lembang Agri, in order from first to third priority, namely training for farmers, implementation of crop cultivation SOPs, and cooperation with external parties. Then, for Asia Agro, there are 5 mitigation actions in order of first to third priority, namely implementing SOPs for harvest and post-harvest handling, providing recommendations to suppliers to implement integrated pest management, and paying attention to workers' welfare.