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preferences, conducted a binomial logit regression analysis with the dependent variable of the consumer preference and the independent variable of the perception
of organic farming, organic rice purity, environmental concern, education of housewife and dummy of location. To test the hypothesis 2 semi logarithmic
regression analysis, with the dependent variable of the price of organic rice, while the independent variable of the grain head, grain color, chalky grain, brown grain,
foreign matter, texture, aroma, volume of cooked rice, sweetness, and shelf life. To test the hypothesis 3 a Chow method is conducted and be continued by a
regression analysis with expanded variable of the interaction between variable grain head, chalky grain, texture and sweetness and the dummy location.
To test the hypothesis 4 be conducted an analysis of double logarithmic regression models of demand function of organic rice. Factors that were suspected
to influence consumer demand for organic rice were the organic rice price, price of non-organic rice, family income, education housewife, the familial reference, the
collegial reference, neighborhood reference, and consumer preference. To test the hypothesis 5 is done by the Chow method is conducted and be continued by a
regression analysis with expanded variable of the interaction between the variable price of organic rice, familial reference, collegial reference, neighborhood
reference, consumer preference with dummy location.
F. Results
The analysis showed that the variable perception of organic farming, organic rice purity, family income and the dummy location are factors that
influence consumer preferences. Better consumer perception towards organic farming and organic rice purity will increase consumer preference. Consumers with
higher family income have a better preference to organic rice. Consumers of Surakarta and Semarang have a better preference of organic rice. Similar to Rimal
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2002, the results of this study are also not able to reveal the role of consumer concerns in the agricultural environment on consumer preferences, but it is
believed that this factor has an important role. Hedonic analysis of the organic rice showed that grain head, chalky grain,
texture, and sweetness are the factors that affected to the price of organic rice. Result of this study supports to the previous research conducted in Indonesia,
Philippines, and Thailand that consumers give a higher price for rice with higher number of grains head and less number of foreign matter Damardjati and Oka,
1992; Abansi et al., 1992; Sriswasdilek et al., 1992. Result of this study proves that a higher valuation of head grain of organic rice grain, texture and sweetness of
organic rice let a higher price. This occurs because the grain head, texture and sweetness are expected characteristics. The results also found that the increase in
chalky grain let a lower price, because chalky grain is an unexpected characteristic. The structure of hedonic price function in Surakarta is difference to Sragen
due to the variable of grain head, chalky grain, texture, sweetness, and intercept. The structure of hedonic price function in Semarang is difference to Sragen due to
the variable of chalky grain, sweetness, and intercept. Demand function analysis shows that the price of organic rice, the familial
reference, collegial reference, neighborhood reference and consumer preference are factors that significantly affect to the demand for organic rice. Organic rice price
has a positive effect on demand, suggests that consumer uses price as an indication of quality. This result is consistent with the theory developed by Agarwal and Teas
2001 which states that an increase in prices caused by the quality will lead to increase the demand.
