The Contribution of Off-Takers to Sustainable Agricultural Cluster Businesses

Asep Mulyana (), Teten Masduki, Wa Ode Zusnita Muizu, Tri Febrianti and Dara Sagita Triski
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Asep Mulyana: Department of Management, Faculty of Economics and Business, Padjadjaran University, Bandung 40115, Indonesia
Teten Masduki: Ministry of Cooperative and Micro Small Medium Enterprise, Jakarta 12940, Indonesia
Wa Ode Zusnita Muizu: Department of Management, Faculty of Economics and Business, Padjadjaran University, Bandung 40115, Indonesia
Tri Febrianti: Department of Management, Faculty of Economics and Business, Padjadjaran University, Bandung 40115, Indonesia
Dara Sagita Triski: Department of Management, Faculty of Economics and Business, Padjadjaran University, Bandung 40115, Indonesia

Sustainability, 2024, vol. 16, issue 23, 1-13

Abstract: The agricultural sector is a cornerstone of many developing economies, supporting millions of livelihoods, contributing significantly to GDP, and ensuring food security and social stability. This study explores the crucial role of off-takers in enhancing the resilience and sustainability of agricultural clusters. Through predetermined purchase agreements, off-takers offer market certainty, stabilize income for smallholder farmers, and provide essential support in capital access, technical assistance, and technology adoption. Employing a Systematic Literature Review (SLR) method and secondary data analysis, along with a case study focusing on an agricultural cluster in West Java, Indonesia, this research highlights how off-takers contribute to price stability, promote entrepreneurial skills among farmers, and foster social entrepreneurship. The findings emphasize the importance of building strategic partnerships between farmers, off-takers, and government entities to strengthen agricultural competitiveness, support sustainable rural economies, and ensure food security. Practical recommendations are provided for policymakers and stakeholders to optimize off-taker engagement in agricultural clusters, thereby fostering thriving agricultural ecosystems and economic prosperity in rural communities.

Keywords: off-taker; agriculture; sustainability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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