Shallot Production Risk: Case Study in Gunungkidul Region Yogyakarta Province

Departement of Agricultural Socio-Economic, Faculty Agriculture, Universitas Gadjah Mada, Yogyakarta, Indonesia

^* Corresponding author: salsabila.aulia@mail.ugm.ac.id

Abstract

Shallot is a horticultural product that has good economic value for being cultivated by smallholder. Does this commodity have lots of production risks? Shallot farmers often face production risksthrough inefficient use of off-the-field production facilities, weather and pest attacks. The present study was conducted to estimate the risk of shallot production and its determinant factors. The study was carried out in Kapanewon Wonosari, which is situated on the karst mountains of Java Island. In moorland ecosystem, shallots are mostly cultivated by farmers although the large scale irrigation system is at a critical stage of water deficit derived from boreholes. The production risk was quantitatively evaluated by the Coefficient of variation (CV) on average level and also analyzed by Ordinary Least Square (OLS) through Just and Pope risk function model. The risk measured for shallot production appear at high level (CV: 68.5%). As a result, the loss rate for shallot farming in Kapanewon Wonosari is 68.5%. Moreover, the OLS regression results indicate that pesticide cost and number of planting show a positive significant effect on production risk while farm experience and major sowing quarter through April to June have a negative impact.