This study aimed to determine the production risk level of shallot farming in Batu City, farmer behaviour toward the risk,, and factors which influence the level of risk. The production risk level of shallot farming was identified through the coefficient of variation (CV)'s extent; and farmer behaviour was identified through K(S) coefficient, meanwhile, to look for factors which influenced the level of production risk was by using a method developed by Just and Pope. Its first procedure made the function of Cobb-Douglas production, then the level of risk was determined and the model was analyzed by linear regression multiple. The research location was purposively determined in Torongrejo Village, Junrejo Subdistrict, Batu City, while the sample determination method used a simple random sampling method by considering that the area cultivated by farmers was almost the same. Based on the analysis results it was found that the risk level of shallot farming in Batu City was included in the high category. Meanwile farmer behaviour in reseach area was Risk Averter. Factors influencing the risk level of shallot farming in Batu City are the number of workers, the use of NPK fertilizer and the use of pesticides.

Until now, the domestic patchouli essential oil industry in Indonesia is still limited to exporting unprocessed products as finished products. In addition, farmers and cooperatives understanding is still low in implementing a good plantation manufacturing process. One indicator that can be seen is the number of imports of patchouli essential oil derivative products such as semi-finished ingredients from perfume and food flavors by Indonesia in the period of October-December 2008 amounting to US$ 401 million while exports were only US$ 103 million or a deficit of three to four times of exports. The purpose of this research is to analyze the comparative competitiveness, competitive competitiveness, and specialization of Indonesian patchouli essential oil trade in the international market. Countries that are used as comparison for Indonesia (rank 7) based on the average volume of exports are Brazil (rank 1), the United States (rank 2), Mexico (rank 8) and France (rank 9). This study uses the Revealed Comparative Trade Advantage (RCTA) analysis tool to analyze comparative competitiveness, the Export Competitiveness Index (XCI) to analyze competitive competitiveness, and the Trade Specialization Index (ISP) to analyze its trade specialties. The factors that significantly influence the competitiveness and trade specialization are the export and import value of patchouli essential oil and other goods from Indonesia and competing countries, the total export and import value of patchouli essential oil. Based on the results of the RCTA, XCI, and ISP analysis, the values obtained by Indonesia were 2.013, 1.012, and 0.412, respectively. Keywords: patchouli, essential oil, competitiveness, trade specialties

BUMDes is one of the income sources for the village managing assets, services, and other businesses for the village community's welfare. BUMDes empowers rural communities as an autonomous region in increasing productive efforts to alleviate poverty and unemployment. Therefore, the measurement of BUMDes's performance needs to be done through the level of local resources used and the implications of the results achieved. It was required to formulate appropriate development policies so that BUMDes have high competitiveness and fulfill their role in increasing the community's economic independence. This study was conducted in East Java BUMDes because East Java province is the third province with the largest number of BUMDes in Indonesia, so it was quite representative to represent the presence of BUMDes in Indonesia. This research used a quantitative approach carried out using the structural equation modeling-partial least square (SEM-PLS) method with the Resource-based View (RBV) approach to measure the effect of BUMDes resources used on its competitiveness. The analysis showed that structural capital had a positive effect on human capital and relational capital. Human capital had also been proven to have a positive effect on relational capital. The indicator that influenced competitive advantage was human capital. Training is needed to increase the human resources capacity, online marketing training and organizational reform, infrastructure, and professional management systems need to be done.

This research is conducted in considering that large number of misshapen horticultural commodities that are not considered by consumers due to the shape and/or other characteristics inherent in horticultural products in vegetable and fruit commodities, such as suboptimal physical conditions, different sizes, and unattractive colors that affect consumer preferences in buying them, although the nutritional content is not different from physically perfect products. The purpose of this study are to 1) analyze consumer preferences for suboptimal agricultural products, 2) analyze consumer willingness to pay (WTP) for suboptimal products. Further, conditional logit analysis is used to analyze consumer preferences using maximum likelihood estimation (MLE) approach, while Marginal Willingness to Pay or MWTP method is used to analyze consumer willingness. The result, the consumer preference on papaya commodities was based on optimal performance, no message framing, available in traditional markets and the amount of purchase exceeded one kilogram. Tha for cucumber, consumers preferred to buy it by considering optimal performance, without message framing, and available in traditional markets. The WTP value on papaya and cucumber indicates that the average WTP value for suboptimal products was lower than the optimal products. The WTP value for the optimal papaya was higher than the suboptimal papaya. For cucumber, the WTP value for the optimal cucumber was higher than the suboptimal product. We suggest producers should set the price cheaper for suboptimal products to compete in the market and reduce the amount of waste.