Assessing the performance and factors affecting organic rice agribusiness sustainability

The sustainability of organic rice agribusiness is determined by the performance of the agribusiness system consisting of subsystems providing production inputs, on-farm subsystems, processing/ handling results subsystems, marketing subsystems and supporting element subsystems. In Indonesia, especially East Priangan is known as an area of organic rice development. Currently, the development performance shows a decrease in indicators including productivity, production, planting area and the number of farmers involved in organic rice cultivation. The purpose of this study is to describe the actual performance of development while analysing the factors that influence the sustainability of organic rice agribusiness. The survey method was used in this study of cluster random sampling technique on 280 organic rice farmers in 4 districts/cities of East Priangan, West Java Province, Indonesia and applying the Structural Equation Model (SEM) approach using the LISREL analysis tool. It can be concluded that the development of organic rice gribusiness in the study area obtained sufficient performance and the whole agribusiness subsystem which consists of production input sub-system, on-farm subsystem, handling/processing subsystem, marketing subsystem and supporting element subsystem affecting the sustainability of organic rice agribusiness.