Orange Agribusiness Development Strategy in Banyuwangi

This research aims to get the priority of orange agribusiness development strategies in Banyuwangi Regency. Banyuwangi Regency was a national orange agribusiness center (pilot project) that has been established by The Ministry of Agriculture. This research uses a qualitative descriptive study. Data was collected by observation, interviews and documentation. The research location was Bangorejo Subdistrict, Banyuwangi Regency, as the highest orange producing center in Banyuwangi Regency. The informants selection uses purposive sampling technique. Head of Horticultural Division of Banyuwangi Agriculture Office become the key informant. Data analysis techniques are IFE and EFE Analysis, IE Matrix, SWOT Matrix and QSPM Matrix. The results showed that the affecting factors of oranges production in Banyuwangi Regency were (1) plant population, (2) number of productive plants, (3) soil quality, (4) experienced labor. The general strategy in this research was quadrant II (grow and develop). Strategic priority to increase orange agribusiness commodities uses the S-O (StrengthsOpportunities) strategy through increased production and quality of orange to meet market demand by utilizing the role of agricultural extension agents. Keywords—Banyuwangi regency, development strategy, orange agribusiness


I. INTRODUCTION
The largest production of Siamese citrus in East Java Province originates from Banyuwangi Regency which was 205,685 tons [1]. The Ministry of Agriculture has designated Banyuwangi as the National Citrus Center Pilot Project. The characteristics of siam oranges in Banyuwangi region are famous for the sweet, soft and fresh fruit texture, and easily peeled skin. These interesting characteristics are not accompanied by optimal management of post-harvest Siamese oranges in Banyuwangi and are still relatively simple so that farmers must experience fluctuating prices that affect the income of Siamese orange farmers. Citrus farmers in Bangorejo sub-district generally sell oranges without postharvest value-added process, such as sorting, grading, and packaging because farmers do not want the difficulties and costs of carrying out these activities are expensive according to Siamese farmers. This was evident from the total production and prices in 2016, as shown in Fig.1.  Fig. 1 shows that the high yield of Siamese fruit is shown in first quarter (January, February, March) and third quarter (July, August, September) [2]. The fluctuating price changes began to be felt in 3rd and 4th quarters. The prices at Quarter 3 declines 23% than previous quarter caused by higher production at 199.7% than the previous quarter's production. The price at Quarter 4 jumped 60% higher than Quarter 3 of IDR 8,000 caused by production of siam fruit which dropped drastically around 72% of total production in third quarter [3]. Table 1 shows the price changes are caused by different amount of production at every quarter However, it can be seen in Q1 and 2 that prices did not change even though production in second quarter fell by 72%. It shows the price is not only affected by production factor. Some of previous studies became the reference for this study in relation to analysis of strategies to increase the orange agribusiness in Banyuwangi. Banyuwangi Regency, as red potato agribusiness development strategy [4]. Strategy development can be implemented with proactive communication strategy and isolation strategy with effective marketing promotional strategy were the best strategies [5]. Strategy development can be done by increasing production [6]. Strategy development can be achieved with improving the marketing, maintaining the product quality and increasing the working capital [7]. Strategy development can be analyzed with SWOT and gained success at Haier Group companies [8]. SWOT analysis can be used to examine strategic management tool strengths, weaknesses, opportunities and threats of P.S.Taha Company, in 2014 as a case study [9]. SWOT analysis can be used to find the appropriate strategy in agriculture sector [10]. SWOT analysis can be used to improve the wetland usage in Iran [11]. SWOT analysis also support for waste water treatment strategy for agriculture irrigation [12]. SWOT give benefit in Development Strategies of Maize Industry in Heilongjiang Province [13]. SWOT analysis can be used for forest fuel supply chain [14]. SWOT hybrid to make human and business strategys and used it in sustainable development of ecotourism [15]. Strategic attributes have a greater influence on organizational performance than organizational attributes [16]. Agroindustry can develop from small farmer in rural area with good policy and managerial skills [17]. The marketing margin is used to increase the agriculture production through the difference between the prices paid by consumers and prices of producers themselves [18]. A research on marketing channels, marketing cost, margin and producer's share in consumer rupees in paddy commodity was very important to develop agribusiness paddy. Etah District, Uttar Pradesh was chosen deliberately in study [19]. Market channels are chosen for research namely, marketing channels, marketing costs, margins and producer shares. IE, SWOT, and QSPM analysis are analysis tools that can be used in this research.
This study purpose was to analyze the strengths, weaknesses, opportunities and threats to improve the Siamese agribusiness in Bangorejo Subdistrict, Banyuwangi Regency: knowing the internal and external factors that influence the increase of Orange agribusiness, knowing the priority strategy to increase effective agribusiness in orange business in Bangorejo Subdistrict, Banyuwangi Regency as the center of national orange agribusiness (pilot project).

II. RESEARCH METHODS
The research location is Bangorejo District, Banyuwangi Regency, East Java Province. It uses primary and secondary data. Primary data is obtained from interviews with experts. The sampling technique used is purposive sampling based on respondents' expertise. Research respondents were 5 people consisting of: 1) Head of Banyuwangi District Agriculture Service, 2) Chairperson of Bangorejo District Farmers Group Association, 3) educational academics from Banyuwangi State Polytechnic Campus, 4) Chairperson of Cendrawasih farmer group, 5) Chairperson of Menco farmer group. Secondary data is obtained from the Banyuwangi District agricultural service archives, literature books, as well as information tracing through the internet that could support research.
The research approach is a descriptive qualitative through a case study in Bangorejo District, Banyuwangi Regency. Data and information collection techniques are observation, interviews, and filling out questionnaires. Data analysis methods used include analysis of Internal Factor Evaluation (IFE), analysis of Externally Factor Evaluation (EFE), External Internal Matrix, Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, and strategy selection using Quantitative Strategic Planning Matrix (QSPM analysis) [20].
Descriptive analysis was used to explain vision and mission of development of Siamese agribusiness in Bangorejo District, Banyuwangi Regency. IFE and EFE are used to analyze internal and external factors to influence the development strategy of Orange agribusiness. IE matrix determines the position of Siamese orange farming in Bangorejo District. SWOT Analysis is used to formulate alternative strategies and QSPM analysis to get priority strategies. Bangorejo District, Banyuwangi Regency is one of orange agribusiness centers in East Java. The location of Banyuwangi Regency is feasible for development of Siamese agribusiness sector. Strategies for development of orange agribusiness are needed to ensure sustainable supply and improvement of products.

III. RESULT AND DISCUSSION
The interview results and questionnaire filling by respondents produce research data. It is used to show shows several factors of IFE and EFE analysis (strengths, weaknesses, opportunities, and threats), as shown below. The results of IFE and EFE evaluation are presented in Table I  and Table II. District, Banyuwangi Regency improves the quality of production and post-harvest handling.
The results of QSPM analysis show that the priority of choice of strategy is to implement a strategy to increase the production of orange to meet market demand by utilizing the role of agricultural extension agents. QSPM results can be seen in Table III.   TABLE III. RESULT OF QSPM MATRIX ANALYSIS

No
Alternative strategy TAS Priority

1
Increasing production and quality of siam oranges to meet market demand by utilizing the role of agricultural extension agents 6.062 I 2 Producing derivative products for the industrial raw materials 5.565 III 3 Improving the product competitiveness to be able to compete in free market

A. Managerial and Policy Implications
Agricultural intensification strategies must include farmer to implement Sapta farming. Sapta farming includes good soil processing, regular irrigation, selection of superior seeds, proper fertilization, integrated pest and disease control, efficient post-harvest handling and marketing. Therefore, they should follow education and training, counseling and mentoring, developing agricultural marketing systems and facilities, provision of financing and capital facilities, technology, and information and strengthening farmer institution.

A. Conclusions
Based on research results, there are some conclusions:

B. Recommendations
Recommendations are suggested to improve the implementation effectiveness of Siamese agribusiness development strategies in Banyuwangi Regency. Based on results of this study, researchers give below suggestions to several parties.

1) Orange Farmers in Banyuwangi:
Farmers should further enhance collaboration with other farmers in form of an Agricultural Cooperative as a farmers group in Bangorejo sub-district. Farmers should carry out more intensive maintenance on siam orange to improve the quality and quality, in addition to need for compatibility in use of fertilizers and pesticides in production process to meet market demand. Farmers should pay attention to prices changes of production facilities and selling prices of siam oranges as a form of anticipation of uncertainty in future economic conditions.
2) Government: The government should pay more attention to the centers of orange production by facilitating farmers in form of latest technology information such as the use of seeds with superior varieties, connecting the relationship between farmers and banks, and optimizing the IPM SL program in farmer groups so the farmers can solve problems that often occur such as controlling high attack of plant pests.

ACKNOWLEDGMENT
The Ministry Research Technology and Higher Education, the Republic of Indonesia that give financial support to this Research in Politeknik Negeri Banyuwangi.