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G. Conclusion and Application
1. Conclusion
a. Perceptions of organic farming, organic rice purity and family income are
factors that influence to consumer preference towards organic rice. Consumers of Surakarta and Semarang have an higher preference than the consumers of
Sragen. b.
Organic rice that is sold to Sragen, Surakarta and Semarang is assessed as having a good quality by consumer due to the number of grains head, less
chalky grain, brown grain and foreign matter. Due to the quality of the cooked rice, the organic rice is assessed as having good characteristic of texture and
shelf life. Increase in the number of grains head, texture and sweetness lead to increase the price of organic rice, while a decrease in the number of chalky
grain lead to increase the price of organic rice. c.
Structure of the hedonic price function in Sragen is difference to Surakarta and Semarang. Price response to the changes in head grain of Surakarta consumers
is higher than Sragen, but to the change of chalky grain, texture and sweetness is lower. Price response to the change of chalky grain and sweetness of
Semarang consumer is lower than Sragen. Price of organic rice in Surakarta and Semarang is higher than in Sragen at the same quality level.
d. Most consumers meet the family need of rice with organic rice, and some
others with a mixture of organic and non-organic rice. Consumers tend to buy over and over on the same of type of rice, the amount and the place of
purchase. e.
Organic rice demand increase along to the increase on price due to the increase on the quality of organic rice. Higher levels of education lead to increase the
demand for organic rice in Surakarta, but not in Sragen, Semarang, total. Consumer demand for organic rice which has a familial reference, collegial
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reference, and neighborhood reference is higher than the consumer without reference. This study was not able to explain the influent of economic factors,
namely family income and the price of non-organic rice to organic rice demand. f.
Organic rice demand function in Surakarta has a different structure to Sragen due to the variable of collegial reference and neighborhood reference. The shift
on demand function of Surakarta due to collegial reference and neighborhood reference is higher than Sragen.
g. Organic rice demand function in Semarang has a different structure to Sragen
due to the variable of price of organic rice, familial reference, collegial reference, neighborhood reference and consumer preference. The shift on
demand function of Semarang due to price of organic rice is higher than Sragen, but less due to the change consumer preference. The shift on demand of
Semarang due to the variable of collegial and familial reference is higher than Sragen, but less on the variable of neighborhood reference. The demand for
organic rice of Surakarta and Semarang is higher than Sragen.
2. Implementation of the policy
a. To maintain the high price of organic rice remains attractive to consumers, the
organic rice farmers should sell good-quality organic rice, especially in terms of the grain head, chalky grain, texture and sweetness of organic rice. Hence,
the organically grown rice variety id recommended having good taste, cultivated with good management in order to grow evenly, and good post-
harvest handling. In case of pests and diseases, or effect of unfavorable environmental that makes organic rice less growth and produce poor quality
rice, it is advisable not to sell it as organic rice. b.
Reference group is an important factor of the demand for organic rice. Therefore, the organic rice should be marketed in a organized group. Market
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development of organic rice should be in collaboration to cooperative of employees of public and private institutions, such as hospitals, universities,
government agencies and the private sector. This group is a potential market, because of the education is relatively high, fixed income, have a high level of
communication between members. Expansion to the target market should be done on partnerships to the leader of the group.
c. The warranty of the purity of organic rice will increase consumer preference
and increase consumer demand. Concerned with, the government is advised to provide the facility to certify organic rice farmer groups that have been able to
produce organically. For farmer groups who do not obtain a certification are advised to get a justification of its organic rice production process to the
competent institutions of higher education. d.
Consumer perception of organic farming is an important factor for increasing consumer preference for organic rice. To provide complete information about
organic farming and to develop a brand which guarantees the purity of organic rice, farmer groups should utilize the mass media that have a very broad scope,
such as the internet, to provide complete information about the process of production, post-harvest handling, and resources of organic agricultural
products managed by farmer groups. e.
Surakarta and Semarang is a potential market for organic rice. Consumers of organic rice in both cities are willing to pay a higher price than Sragen, so there
is a price margin as compensation for the higher cost of transportation for the transportation to both cities. In Surakarta, organic rice target market is people
who are highly educated or at least secondary education.
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