Strategies for Agribusiness Development of Chili Farming in Boyolali Regency

Chilli is one of high-value agricultural commodities, which is facing many challenges and problems. The objectives of the research are: (1) to identify the agribusiness institutions and their role on agribusiness development of chilli farming in Boyolali Regency; (2) to formulate alternative strategies of agribusiness development of Chile in Boyolali Regency; and (3) to identify the strategy priority to support agribusiness development of chilli in Boyolali Regency. Location of the research is determined by purposive sampling. It comprises the villages of Gedangan and Kembangkuning which are the center of chilli production in Cepogo Subdistrict, Boyolali Regency. 40 farmers are randomly chosen to be interviewed, while other stakeholders such as Boyolali Office of Agricutulture, Cepogo extension agency, chilli trader, and farmer group were also involved in the research. The analysis methods used are descriptive qualitative, IFE and EFE, IE, SWOT, and QSPM. The results of the research show that the following institutions play an important role in the agribusiness development of chilli in Boyolali Regency, namely agricultural inputs shops, farmers group, association of farmers group, chilli-based home industry, chilli processing company, traders of farm, and financial institutions such as BRI, Central Java Bank, BMT, UPK, traders of farm and farmers group, as well as government institutions such as Office of Agriculture of Boyolali Regency and extension agency of Cepogo Subdistrict. The study suggests that the alternative developing strategies are: (a) optimizing the role of extension agents to improve the quality of human resources, (b) sustaining the continuity of chilli production, and (c) optimizing post-harvest handling assistance. The result also suggests that increasing production and productivity as well as maintaining the quality of chilli are the prioritized strategies to develop agribusiness of chilli in Boyolali Regency.