Demand for Pesticides on Shallot Farming in Sanden Sub-District Bantul Regency

Sakinah, Sugiyarto and Any Suryantini

Journal of Agribusiness Management and Development (JAMADev), 2022, vol. 3, issue 1

Abstract: Sanden Sub-district is one of the shallots producing centers in Bantul Regency. The research objectives are: (1) to identify the type of pesticides used by shallot farmers and to calculate the cost structure of shallot farming; (2) to measure the variation of pesticide usage based on the growing season; (3) to analyze determinants of the demand for pesticides (4) to calculate the own price and cross-price elasticities of the demand for pesticides. The location and respondents of the research are chosen purposively and the research involves 35 shallot farmers. The descriptive method is used to identify the type of pesticide usage. Paired Sample t-test is used to test the pesticide usage difference between seasons. The ordinary Least Square (OLS) method is employed to analyze the factors affecting the demand for pesticides. The own-price and cross-price elasticities are determined based on regression coefficients. The result of the analysis shows that the type of pesticides consists of insecticide and fungicide, and the pesticide cost contributes 8-10% of the total production cost. The pesticide usage between seasons is statistically different. The results also show that the determinant factors of the demand for pesticides are the price of pesticides, the price of shallot, land size, and the wage of labor. Both insecticide and fungicide demand are elastic to price change.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Date: 2022
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