Comparing farming income prospects for cocoa and oil palm in Asahan District of North Sumatera

Abstract

Oil palm, rubber, and cocoa are the top three leading plantation commodities in Indonesia which are usually mutually converted one to each other. Oil palm plantation area and production in Indonesia over the past five years tend to increase, while the cocoa plantation area and production tend to decrease. According to the business ownership status, most of the cocoa plantations are cultivated by smallholders, while most of the oil palm plantations are cultivated by large private plantations. In North Sumatra, the cocoa commodity is the most often converted into oil palm. One of the factors that affect cocoa lands conversion into oil palm is the income prospects. The income analysis and the compare means analysis were used to see whether there are significant differences between the average income of cocoa and oil palm farming. The results showed that there are significant differences between the incomes of cocoa farmers and oil palm farmers, where the prospect of oil palm farmers’ income is higher than the income of cocoa farmers.

Sustainable cocoa supply chain in East Java, Indonesia: Potential and risk identification

“…This presents a promising trajectory for the ongoing enhancement of the cocoa sector. This heightened demand offers an opportunity for additional community income [17]. The effectiveness of establishing a sustainable cocoa supply chain in Blitar Regency is exemplified through the creation of the Chocolate Village, which contributes to increased earnings for local residents.…”