Peanuts RICE SELF-SUFFICIENCY IN INDONESIA: AN ANALYSIS ON BUDGET ALLOCATION AND THE ACHIEVEMENT

Aris Slamet Widodo, Retno Wulandari 260 Analysis of farming corn commodity can be seen at table 2. Table 2. Farming Corn Income on Tegal Field 0.1Ha Rainy Season Dry Season Variables Tegal Ricefield Tegal A. Income Rp 318.200 622.750 1.297.400 Producion Kg 86 144 546 Cost Rpkg 3.700 2.650 2.600 B. Explicit Cost Seed RpKg 2.600 15.300 9.000 Manure RpKg 25.000 812.000 755.000 Urea RpKg 11.400 55.100 30.000 Fertilizer TSP RpKg 24.700 37.950 Fertilizer ZA RpKg 1.600 24.500 - Fertilizer Ponska RpKg 10.800 44.400 - Pesticide RpKg 2.625 28.000 - External Labor Rp 7.000 132.500 13.000 Other Costs Rp 9.000 56.000 2.300 Total Cost Rp 32.025 276.200 24.300 C. Income Rp 286.175 346.550 1.273.100 Source: Primary Data Processed In 2014, the selling price of corns was ranging from Rp 2.600,-. The price was considered quite low compared to the other corn centers. This was due to the high cost resulting from the long supply chain. In 2015, the selling price of corns raised, ranging from Rp 3.000,-kg to Rp 3.700,-kg. This was as corn production decreased in some places, however, the demand of corns as animal feeding got higher. According to the analysis result of corns cultivation in Giritirto village, the highest productivity on the dry season at tegal land achieving 546 kg0.1 Ha. Meanwhile, the lowest one is on the raiy season which is 86 kg0.1 Ha. It shows that the corn is appropriately cultivated on the dry season. The highest cost of corns cultivation, in general, is on ricefield on the dry season. The cost of seeds provision and manure achieves 15.300 dan Rp 812.000,-. The use of chemical fertilizer and labors outside the family achieves Rp 176.700 and Rp 132.500. It was because land condition that requires cultivation care and land management. The total cost of cultivating corn-ricefield on the dry season is Rp 276.200, while the ricefield farming cost on the dry season is only Rp 24.300, and that at tegal land on the rainy season is only Rp 32.025. Although ricefield costs more, the result is not equal with the achieved income. The achiev ed income of farmers’ at ricefield is Rp 346.550,- while that at tegal land with Rp 286.175.-. The highest income of corn cultivation is achieved by farmers at tegal farming on the dry season with Rp 1.273.100,-. Such a high income is influenced by high productivity achieving 546 kg0.1 Ha and the low production cost being only Rp 24.300,-.

3. Peanuts

Another commodity cultivated by farmers in Giritirto village, Purwosari sub- district, Gunungkidul district is peanut. It is one of commodity having potential to be developed. This can be seen from the aspect of food processing raw made peanuts, such as nut-egg, garlic butter, and the like. Analysis of peanuts commodity farming on tegal land on the dry can be seen at table 3. Based on the analysis findings of peanuts cultivation in Giritirto village with 1000 m 2 width of tegal land have Development for Human Welfare 2016 261 productivity with 134 kg 0.1 Ha. Peanuts cultivation done by the farmers gives income as much as Rp 1.514.200,-. In 2014, the selling price of peanuts was range from Rp 7.000,-kg to Rp 9.000,-kg. While in 2015, the selling price of corns raised ranging from Rp 10.000,- kg to Rp 12.000,-kg. It took place since the peanuts production decreased in some places and yet the demand of peanuts was high. The highest cost of cultivating peanuts is on providing the seeds, manure, and fertilizer ZA each of which with Rp 34.800, Rp 71.811, and Rp 34.298,-. In the process of cultivating peanuts, it needs not assistance labors outside the family resulting cost efficiency. The high selling price with Rp. 11.300 and the good productivity 134 kg as well as the low farming cost resulting the high income of peanuts cultivation achieving Rp 1.157.200,-. Table 3. Income of peanut farming at ricefield and tegal 0.1 Ha Variables Tegal A. Income RpKg 1.514.200 Production Kg 134 Price Rp 11.300 B. Explicit Cost - Seed RpKg 340.800 Manure RpKg 71.811 Urea RpKg 4.287 Fertilizer TSP RpKg 5.359 Fertilizer ZA RpKg 34.298 Fertilizer Ponska RpKg 7.500 Other Costs Rp 8.900 Total Cost Rp 357.200 C. Income Rp 1.157.000 Source: Primary data processed 2015 CONCLUSION Farming frequently done by farmers in Giritirto village on rainy season is paddy and corn, while that on the dry season average farmers cultivate corn and peanut. The average income of paddy- farmer on the rainy season at ricefield is Rp 1.443.000,- while that at tegal land is Rp 622.850,-. Average income of corn- farmers at tegal land on the rainy season is Rp 286.175,-., while that at the ricefield on the dry season is Rp 346.550,-. The highest income is achieved at tegal land on the dry season with Rp 1.273.100.-. Average income of peanut-farmers at tegal land is Rp 1.157.000,-. REFERENCES Agricultural Research and Development Agency. 2010. An Analysis of Land Resources toward Sustainable Food Security . Jakarta: Agricultural Research and Development Agency. BPS of Gunungkidul District 2014. Data on prone food area 2013 . Yogyakarta. Department of Agriculture. 2004. Agricultural Information Office. Department of Agriculture. Yogyakarta. Mahaputra, I. K., and I. N. Adijaya. 2004. Financial analysis of farming corn by embung irrigation on dry land in Buleleng District. National Seminar Prosiding ”Optimizing Usage of Local Resources to Support Agricultural Development. Center of Research and Development of Agricultural Social-Economy in coorporation with Research Center of Agricultural Technology Bali. Nurhemi, et al., 2014. Mapping of food security in Indonesia: tfp approach and food security index. Working Paper: Bank Indonesia , WP42014. Soekartawi. 2006. Theory of Economic Production . Jakarta: CV Rajawali. Surakhmad. 1994. Introduction to Scientific Research . Bandung: Tarsito. Widodo, A.S. 2006. Management of integrated organic farming system in Gunungkidul District, Indonesia. Thesis , Agriculture and Information System Department, Faculty of Agriculture, Universiti Putra Malaysia, Malaysia. Djaenudin, D., Marwan, Subagyo and A. Hidayat. 2003. Technical Guidelines of Land Evaluation for Agricultural Aris Slamet Widodo, Retno Wulandari 262 Commodity . Research Center of Land, Puslitbangtanak, Agricultural Research and Development. Bogor Development for Human Welfare 2016 263 DISCUSSION FROM PARALLEL SESSION PAPER TITTLE Farming Income Analysis of Food Crops in The Sub- district of Purwosari The District of Gunungkidul AUTHOR Aris Slamet Widodo, Retno Wulandari DISCUSSION QUESTION - Who the target in the research? National International, make the like more general not so locally issue. - Peanut is corn? ANSWER - Actually international, but it’s so national SUGGESTION - Need to write GAP clearly - Revise the tittle more shortly - Make implication - Don’t put all sentences in the PPT, point enough - It’s very good but please, give a written again the formula of the writing. - There’s no the GAP on the research problem based in preliminary research - Implication of the regional people 264 ANALISYS OF FACTOR THAT INFLUENCE THE DEMAND FOR ORGANIC VEGETABLES IN MEDAN Sasmita Siregar 1 , Hadriman Khair 1 , Yudha Andriansyah Putra 1 1 Departemen of Agribusiness, Faculty of Agriculture, University Muhammadiyah Sumatera Utara Jl. Kapt. Mukhtar Basri No 3A Medan corresponding author: Ogekad99yahoo.com, putrajan20yahoo.com Abstract Organic vegetables as one of the products that produced from environmentally agriculture and to get closer to the concept of nature, so as to guarantee better quality compared to ordinary vegetables. This raises the main attraction for a certain class of consumers that then change the pattern of consumption of vegetables from the vegetable cultivated anorganic to organic vegetables. However, the potential of agricultural land used for organic vegetable production is still minimal which is classified at 100-200 m 2 only, while for non organic vegetables200 m 2 . This has resulted in the price of organic vegetables became more expensive, because the land is getting so narrow that the production is also limited when every year demand of organic vegetable growing. From that case, it needs to review the factors affecting demand any kind of organic vegetables in Medan city as research regarding consumer preferences such as factor price ratio between organic and non organic vegetables, family income, educational level of the respondent, the respondents age on demand organic vegetables in Medan city. The analysis is Factor Analysis, Data Analysis Techniques with Multiply Regression. Hopefully this research is able to determine the factors that influence the demand for vegetables in the city field results of this study hopefully will be able to provide input to stakeholders wisdom in taking decisions related to the regulation of organic vegetables, especially in Medan city and for academics. The analysis showed: there are three variables that significantly , it’svariable price ratio of organic vegetables with non organic, family income, and the age of the respondent, and there are one variables that no significant it is educational level of respondents. Keywords : Organic vegetables, price ratio, income, age INTRODUCTION Agrifood as one of the basic human needs is one topic that is always progressing in accordance with the changing paradigm of society. Societys growing level of education are increasingly demanding market to continuously improve agricultural products are thrown into the market, in order to meet the standards of their lifestyle that is growing in accordance with the development of the understanding that they get. Lifestyle so this has been institutionalized internationally realized through regulation of global trade, which requires assurance that the agricultural products consumed must have the attribute is safe to eat food safety attributes, has a high nutrient content nutritional attributes and environmentally friendly ecolabelling attributes . the development of demand for organic agricultural products each year tend to increase. domestic demand growth of 600 percent compared with the previous year. This request is equivalent to 5-6 million USD or approximately 45-56 billion rupiah. Organic lifestyle trends have been seen in the consumption pattern can be seen with the availability of organic products in the form of processed ingredients and prepared foods with the opening of supermarkets, hypermarkets and specialty restaurants organic food. Dimitri and Greene 2002 explains that the increase in consumer interest towards organic food and agricultural products is spurred by increasing consumer awareness of the lifestyle. This is evidenced a few studies that have been done in America by the Food Marketing Sasmita Siregar, Hadriman Khair, Yudha Andriansyah Putra 265 Institute, The Hartman Group and The Walnut. In 2001, survey will be undertaken by the Food Marketing The Institution te known that 37 percent of consumers said the reason to consume organic food is untu k maintain health. Besides consumer survey conducted The Har tman Group in 2000 suggested that 66 percent of consumers buy organic food for reasons that organic food is more nutritious and health reasons. Likewise, a survey done by The Walnut Acres consumers believe that organic food is better and healthier than non-organic food. In the city of Medan organic vegetables has become the new belle of the modern market., Although the price is still relatively expensive, or 20 above the price of vegetables nonorganik.Di Supermarket Brastagi for example, organic vegetables on average sold at a price of Rp 17,000 to Rp 70,000 per kg. Table 1. List Price Some Organic Vegetable Based on observations in Medan Kinds of Vegetables Price Rp Kangkung Organik plastik 250 gram 5.625 Bayam Merah Organik plastik 250 gram 5.625 Kubis Organik wraping 1 kg 17.750 Tomat Organic tray + wraping 1 kg 22.000 Jagung organicwraping 1 kg 24.688 Wortel organik plastik 500 gram 9.750 Sawi putih Organicwraping 1kg 23.100 Selada keriting Organic plastik 250 gram 6.188 Pakcoy Giga Organic plastik 250 gram 6.000 Kembang kol Organikwraping 1 kg 30.625 Jamur Shitake Bionicfarm 1 kg 74.400 Some types of organic vegetables provided include kale, spinach green, red spinach, cabbage, tomatoes, corn, carrots, cabbage, lettuce, and pakchoy.Berdasarkan information obtained from the Agency for Agricultural Research and development, consumer demand for organic vegetables in Kotaini continues an increase of 20 every year since it was first marketed in 2009 Anonymous, 2011. Although it is expensive in the city of Medan, this vegetable is still hunted by people as consumers because consume these vegetables with the purpose of health and taste better than non-organic vegetables. But that is an obstacle for consumers is the price is relatively expensive at nearly three times the price of non-organic vegetables, so consumers should consider daily expenses. From the consumer must set frequency will purchase organic vegetables is in accordance with their needs. The main problem of the development of organic vegetable commodities into a large market opportunity for farmers even unknown is not yet integrated variety, quality, continuity of supply and the quantity corresponding to the dynamics of market demand and customer preferences. To address these issues, organic vegetables agribusiness development needs to be done one approaches one of them is the attention of the consumer preference for a demand arises from the consumer side. From the foregoing it is necessary to examine what factors wrote that influence purchasing organic vegetables in the city of Medan as research on consumer preferences it is necessary to further study the factors that influence the demand demand organic vegetables in the city of Medan as factor price ratio between organic and non organic vegetables, household income, education level of the respondent, the respondents age on demand organic vegetables in the city of Medan. METHOD Site Selection Method The research location determined by purposive , it’s meaning that the study area chosen deliberately by researchers. 266 The research area is set in the city of Medan specified deliberately in supermarkets that sell organic vegetables. Supermarket selected were Berastagi Gatot Subroto, Careffour Supermarkets, Supermarkets Brastagi Mangkubumi, Kampung Organic housed in the Environment IV Kelurahan Terjun, Kecamatan Medan Marelan and traditional markets. Method Of Collecting Data Methods of data collection in this research is to conduct the interview questions which collects data on consumers of vegetable Organic of the study sites, namely consumer characteristics such as age, income, number of dependents, the composition of the members of the family, education, experience and various points assessment of the scores given .Daftar question questionaire were asked directly to consumers selected as respondents in the study sites. Data Analysis Method The analysis model is to measure or analyze whether the factor price ratio, income, education, age, the number of dependents to consumer demand for organic vegetables in the city of Medan. The analysis model is a linear regression with a formulation as follows: Y = α+ a 1 X 1 + a 2 X 2 + a 3 X 3 + a 4 X 4 +a 5 X 5 +e …………….. 1 where : Y = Permintaan Sayur Organik α = intercept a 1 , a 2 ,a 3, a 4 , a 5 = Koefisien Regresi X 1 = Rasio harga X 2 =Pendapatan keluarga RpBulan X 3 =Tingkat Pendidikan Responden Tahun X 4 = Umur Tahun X 5 =Jumlah Tanggungan Orang Test Overall Simultaneous test is used to look at the influence of independent variables on the dependent variable overall. The independent variables as a whole is said to have the significant influence on the dependent variable when the value of P- Value Sig is smaller than the significance level α. The significance level adopted in this paper is α = 10. The hypothesis is if t he Sig α = 0.1, H0 can not be rejected means simultaneously independent variable has no effect on the dependent variable. If the value of Sig α = 0.1, then reject H0, meaning simultaneously independent variables affect the dependent variable. Partial Test Partial test used to see whether the independent variables individually have a significant effect on the dependent variable. The independent variables individually said to have the significant influence on the dependent variable when the value of P-Value Sig is smaller than the significance level α. The significance level adopted in this paper is α = 10. The hypothesis is if the Sig α = 0.1, H0 can not be rejected means partially independent variable has no effect on the dependent variable. If the value of Sig α = 0.1, then reject H0, meaning partially independent variables affect the dependent variable. RESULT AND DISCUSSION Of the results were statistically by SPSS that the great value of Adjusted R Square of 0.853 or 85.3, which means that the variation of organic vegetables Demand variable Y is able to be explained by variations in the price ratio variable organic and non-organic vegetables X1, household income X2, education level of respondents X3, age X4, while the remaining 14.7 is explained by other variables not included in the model. Sasmita Siregar, Hadriman Khair, Yudha Andriansyah Putra 267 Regression coefficients To see the regression coefficient can be seen in the following table: Regression coefficients Source: Primary Data processed, 2016 Significant at α = 10 Based on the results in Table, it can be made the regression equation as follows: ̂ = -2227 + 0,291X 1 + 2,645X 2 + 0,051X 3 + 0,053 X 4 ………. 2 Test Simultaneously From the results of the SPSS statistical calculation that the value of F = 83.636 with a significance value of 0.000. If we compare the value of significance to the alpha α of 0.10, the value of Sig 0.10, can be interpreted that simultaneously variable price ratio of organic vegetables with non-organic X1, family income X2, educational level of respondents X3 , age X4, a significant effect on the variable Organic Vegetable Demand Y. Partial test Based on the results of the data processing, wi th a significance of 10 α = 0.1 turns from 4 variables tested there are three variables examined significant effect of variable price ratio of organic and non organic vegetables X1, family income X2, and the age of the respondent X4, and there is one variable that does not have a significant effect, namely, the educational level of respondents X3. Influence of variable The ratio of price Organic Vegetable With non-organic X1 to demand for Organic Vegetable Y Judging from the value of the regression coefficient indicates that the variable ratio of price and Non Organic Vegetable Organic X1 has a positive regression coefficient value 0.291 thus if the ratio of the price of organic and non- organic vegetables increased by 10 times it will raise the demand for organic vegetables by 2.9 times in a week or about 3 times a week. Based on the observation that more respondents make purchases as much as two times a week. If the ratio of prices to rise 10 times then it will increase the purchase of as much as 6 times a week or every day From the partial test results, the ratio of the price of organic and non organic vegetables X1 significantly affects the demand for organic vegetables Y. This indicates that the price is the first thing noticed by the respondent before making a purchase organic vegetables at the sites. Although the price of organic vegetables are more expensive than non- organic vegetable prices led to price ratio is also high, but respondents still buy organic vegetables. This happens at all locations but the most prominent research contained in Careffour Plaza Medan Fair. In Careffour Medan Plaza Fair, price ratio to reach four times the price of vegetable non organic to the four types of organic vegetables are cabbage, spinach, red, Coefficients a Variabel Bebas Unstandardized Coefficients Signifikansi B Std. Error Constant -2.227 0.745 0.004 The ratio of the price of organic and non organic vegetables X1 0.291 0.086 0.001 Family income X2 2.645E-7 0.000 0.002 Educational level X3 0.051 0.074 0.495 Age of respondents X4 0.053 0.016 0.001 268 green spinach, and kale with a high ratio of price in these locations the respondents are still buying because the average frequency of the most purchases also contained in Careffour Plaza Medan Fair. Respondents who like this are consumers who have complex buying behavior, according to Susanto a.b in Philip Kotler explains that consumers have a very complex buying behavior involved when a product is expensive, infrequently purchased and have high personal expression. The buyer will go through the process of learning the first, characterized by developing confidence about the product, then the establishment and making purchases with bijaksana.Hal selection shows that the more expensive organic vegetables means getting better and gave rise to the frequency of purchase. Besides the reason why these vegetables will remain high purchase price although the ratio is due to the overall objectives of respondents buying and consuming organic vegetables for health. Influence of Variable Family Income X2 to demand for Organic Vegetable Y For the family income variable X2 has a positive regression coefficient 2.645. This suggests that if the family income increased by Rp. 1 million, it will raise the demand for organic vegetables amounted to 2.645 times a week, or about three times a week. Based on observations, most low income respondents is at 2 million and most tingggi 8 million, if each family income increased 1 million only, the purchase of organic vegetables has increased from 2 times a week can be 3 times a week. From the partial test results, family income X2 significantly affects the frequency of purchase organic vegetables Y. This shows that the higher the income, the respondents more often to buy organic vegetables that will also increase the frequency of purchase. Based on the theory of demand from buyers in terms of revenue, that if the presence of added revenue it will add the ability to buy a lot of products. Influence of Variable Age of Respondents X4 to demand for the Organic Vegetable Y For the variable age of respondent X4 has a positive regression coefficient 0,053. This suggests that the increasing age of the respondents was 10 years will increase the demand for organic vegetables at 0.5 times a week, or an increase of 1 times a week. From the results of partial testing, respondent age variable X4 significantly affects the demand for organic vegetables Y. This is because the age of the respondents was mostly relatively young age or of childbearing age, and some are already old. In purchasing organic vegetables, still fairly young age and productive, the reason for purchasing organic vegetables because they start eating organic vegetables so that they often make a purchase because they want to see what changes have happened to him after consume organic vegetables, so pemintaannya also increased. If the relatively old age, purchase organic vegetables for the purpose of health, so that more and more parents often make a purchase organic vegetables, the demand for organic vegetables is also increasing. In addition, all respondents have a lifespan that is quite mature and aware enough to take the decision to consume organic vegetables. According to Mulyadi 2012 in adults buying decisions made after believing that a product has benefits for themselves. Variables Influence Educational Level Respondents X3 on Organic Vegetable Demand Y From the test results by using SPSS partial education level of respondents X3 did not significantly affect demand for organic vegetables Y .The level of education that is owned by the respondents from High School to Graduate S-2 but it is dominated by 52 is the level High School. However, knowledge about organic vegetable by each respondent about the advantages and benefits of organic vegetables are all Sasmita Siregar, Hadriman Khair, Yudha Andriansyah Putra 269 pretty much the same but not the same in terms of frequency of purchase because it is different also needs some even level of high school education to buy more than the level of education courses S-2 .This shows that the higher the level of education does not mean increasing demand for organic vegetables. CONCLUSION Based on the results of the data processing, with a significance of 10 α = 0.1 turns from 4 variables tested there are three variables examined significant effect of variable price ratio of organic and non organic vegetables X1, household income X2, and the age of the respondent X4, and there is one variable that does not have a significant effect, namely, the education level of respondents X3. For the government, so always try to keep introducing organic vegetables as a healthy product for consumers to realize that how dangerous non-organic products. For organic vegetable farmers and businessmen, for more attention to consumer behavior about what is desired by consumers in terms of both the vegetable, the ratio of price, advertising, so consumers may be interested in buying organic vegetables. In addition, employers must also consider the income of consumers for affordable prices set by konsumen.Untuk further research is expected to continue this study on the marketing strategy of organic vegetables in the city of Medan REFERENCE Dimitri C., and C. Greene. 2002. Recent Growth Patterns in the US Organic FoodsMarket. diakses pada tanggal 20 Maret 2014 dari http:www.ers.usda.gavpublicatio nsaib777.pdf. Engel, James et al. 1994. Perilaku Konsumen. Terjemahan: Budiyanto. Jakarta: Binarupa Aksara. ______________. 1995. Perilaku Konsumen Jilid I. Edisi Keenam. Jakarta: Binarupa Aksara. Ghozali, I. 2001. Aplikasi Analisis Multivariate dengan Program SPSS, edisi 2. Semarang: Badan Penerbit Universitas Diponegoro. Gujarati D, Sumarno Zein. 1997. Ekonometrika Dasar. Jakarta: Erlangga. Junaedi, S. 2006. Pengembangan model perilaku konsumen berwawasan lingkungan di Indonesia: studi perbandingan kota metropolitan dan non metropolitan. Jurnal Ekonomi dan Bisnis Indonesia 214. Kotler, Philip, dan AB. Susanto. 2000. Manajemen Pemasaran di Indonesia : Analisis, Perencanaan, Implementasi dan Pengendalian, Edisi 6, Jilid 1. Jakarta: Salemba Empat. ___________. 2005. Manajemen Pemasaran. Edisi Milenium. Jakarta: Prenhallindo. Leslie Lazar, K. 2005. Riset Strategi untuk Pengembangan Pertanian Organik di Indonesia dalam Workshop dan Kongres Nasional II Maporina Jakarta hlm:67 – 72. Mangkunegara, A. 2002. Perilaku Konsumen. Jakarta: Rosda Karya. Nuraini, I. 2005. Pengantar Ekonomi Mikro. Malang: Universitas Muhammadiyah Malang. Rahardja, P., dan Manurung, M. 2001. Teori Ekonomi Makro Suatu Pengantar. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia. Schiffman, L., Leslie Lazar, K. 2004. Perilaku Konsumen Edisi Ke 7. Jakarta: P.T Indeks. 270 Setiadi, N.J. 2003. Perilaku Konsumen Konsep dan Implikasi Untuk Strategi dan Penelitian Pemasaran. Jakarta: Kencana. Sugiyono. 2003. Metode Penelitian Bisnis. Bandung: Alfabeta. Sukirno, S. 2013. Mikro Ekonomi Teori Pengantar Edisi Ketiga. Jakarta: P.T Raja Grafindo Persada. Suyanto. 2004. Ekonomi Produksi. Bandung: Tarsito. Widiyanti, and Enda, E. 2005. Analisis faktor faktor karakteristik individu yang mempengaruhi pengambilan keputusan masyarakat sekitar Bogor dalam pembelian sayuran organik di PT. Hero supermarket cabang Pajajaran, Bogor. Skripsi, Program Sarjana Ekstensi Manajemen Agribisnis, Fakultas Pertanian, Institut Pertanian Bogor, Bogor. Sasmita Siregar, Hadriman Khair, Yudha Andriansyah Putra 271 DISCUSSION FROM PARALLEL SESSION PAPER TITTLE ANALISYS OF FACTOR THAT INFLUENCE THE DEMAND FOR ORGANIC VEGETABLES IN MEDAN AUTHOR Sasmita Siregar, Hadriman Khair, Yudha Andriansyah Putra DISCUSSION QUESTION 1. How many people that you use as respondent? And please describe the respondent. 2. High income will increase the frequency to buy organic vegetables, how was that? 3. Education level did not effect the demand of organic vegetables? 4. Why education has no significant effect to the demand frequency user? 5. What are the consequence in this study 6. Why didn’t education level influence the frequency of the product? 7. How is the impact of this research? About the price that tends to increase year by year ANSWER 1. 1000 respondents, this perception important for the producer 2. Because the price in organic so high, although they knew about nutrition but they keep they money because the price so high SUGGESTION 1. Please correct the “bahasa” in your paper 2. Input the non organic price for comparison 3. Add picture and use less word in your slidepresentation 4. State in the paper why the reason why the education level didn’t effect the demand 5. In presentation PPT need to be shortened 6. Need to be translated in English 7. Need more literature reviewers other research to enrich the analysis 8. Need reference search do not need to separate books and journal then mix theme 272 RICE CONSUMER BEHAVIOR IN THE MUSI RAWAS DISTRICT Zaini Amin Departemen of Agribusiness, Faculty of Agriculture, Musi Rawas University Lubuklinggau e-mail: zaini_aminymail.com Abstract The purpose of this study was to analyze the factors affecting the demand of the rice, and rice consumer behavior in the Musi Rawas District. Survey method was used in this research. As many as 100 of 1,043 household of five villages in the Musi Rawas District were selected by using proportionate stratified random sampling. The data were analyzed by using regression model and spearman-rank order correlation model. The resulted showed that: 1 the demand of rice was affected by the rice price, household income, the the total expenditure of the non- rice carbohydrates, and the number of family significantly. As same as partial analysis, except the price of rice and household income levels; and 2 the proportion of rice spending was negatively correlated with the price change of the rice, and total expenditure of non rice carbohydrate, perception to rice, and head of household education significantly. Thus, the higher the price of rice, total expenditure of non rice carbohydrate, and the perception to rice, the lower the proportion of spending rice , or the higher the price of the rice, the total consumption of the non-rice carbohydrate expenditure, and the perception to the rice, the lower the proportion of the rice spending. Keywords: Rice consumer, behavior, price change INTRODUCTION Food is the primary consumer needs of society. Therefore, changes related to the food, especially the price, will change the pattern of family consumption. Logically, that it is due to the changes in the purchasing power or change in the consumers income, and then will affect the demand and the consumption patterns. Various studies on consumer behavior has been contributed by previous researcher Lie et al, 2013. Engel’s theory regarded the relationship of income and consumption patterns. Engel’s theory showed Changes in the proportion of demand in relation to the change in income was evaluated by elasticity coefficient. The coefficient records the relationship between changes in the proportion of demand and changes in income Syrovátka, 2001; Syrovátka, 2007. Initiated by the engel theory, stimulate further research on the relationship of income to consumption patterns. Sheng et al. 2008; Liu et. al. 2009; and Lie at al. 2013 showed that Growth of welfare of the community, has changed the composition and amount of food consumption significantly, which is characterized by a decline in the proportion of allocation of income to consumption of carbohydrates, and increasing consumption of other foodstuffs carbohydrate-based grain and meat. According to Dhraief, Oueslati and Dhehibi 2012 that in Tunisia, peoples behavior in the consumption of meat was affected by income, education and age significantly. The result of the study Kumar et al. 2011 showed that the price Changes of basic foodstuffs rice, wheat and sugar does not affected to demand. Its just that, if the price increases, it will negatively affect to the non-carbohydrate food and sugars. This condition in the long run can restore the food consumption pattern dominated by carbohydrates. Conversely, if the price of basic foodstuffs decreased, it will positively influence to non-rice food needs, even in the long term will positively affect on non-food consumption. Furthermore, relating to consumer behavior, there are great differences of the purchasing behaviour between different types of consumers: male groups at young and middle-aged, especially those who are highly educated and better paid in economically, developed areas, Zaini Amin 273 have strong purchasing powers; consumers’ purchasing behaviour is highly correlated with their preference for products; young consumers and some of the high-income consumers have a weak environmental consciousness and; consumer’s perception Shuai, 2014. Findings in the province of Guang showed increased household incomes in urban areas, an increase in the education level of the head of the family, the age in the household significantly positive effect of increasing milk consumption. The Changing in the structure of consumer tastes and preferences affect consumer behavior that enables consumers to make a variety of food products Wu et.al., 2014. In Indonesia, more than 60 of peoples income is spent for food. In the science of agribusiness, such a state is very interesting, especially on the demand side Yunita and Riswani, 2013. In the case of Indonesia, rice still plays an important role in meeting food needs. The average demand of rice per capita per year in Indonesia is still very high at 130 kg Badan Pusat Statistik, 2015. This condition will change in line with changes in household incomes and the availability of the rice itself. However, referring to these empirical findings, the rising prices of foodstuff due to inflation and the decline in the exchange rate lately in the long term can restore the food consumption patterns dominated rice. Seeing from this description, the consumer behavior to changes in the price of rice will interesting to study. METHOD This research was conducted in the Musi Rawas District, the province of South Sumatera, representated by Tugumulyo city, Tugumulyo subdistrict for urban area; and four village, consist of Semangus, subdistrict of Lakitan and Sukarena, subdistrict Sukakarya for rural in south area; and Sumberharta, subdistrict Sumberharta and Megangsakti, subdistrict of Megangsakti for rural in north area. A survey method was applied in this research. As many as 100 of 1,004 household of one urban and four villages in the Musi Rawas District were selected by using disproportionate stratified random sampling Tabel 1. Data collection were done in August and September 2015 by using a questionnaire to investigate the respondents. Tabel 1. Number of sample Base On Region Area Stratified Region Area Cityvillage Population Sample 1. Urban Area Tugumulyo 250 20 2. Rural in South Area Semangus Sukarena 165 160 20 20 3. Rural in North Area Sumberharta Megangsakti 200 278 20 20 Total 1,043 100 Data Analysis Data analysis was done by linier regression and Spearman rank-orders correlation model. Linier regression analysis was used to seek the determinant factors that influences the rice demand in the patern of carbohydrate consumtion. Spearman rank-orde correlation analysis was used to seek socio economics factors that corelates to the proportion of the non carbohydrate foodstuff spending in the patern of the carbohydrate consumtion. Formulation of the model can be writen as follows: X4 β4 β3 β2 β1 α Y      X3 X2 1 X Where: Y = Rice DemandYears = Constant β , β , β , and β =Coefficients X = Rice Price Rp. X = IncomeYears Rp. 274 X = Total Expenditure of Carbohydrate Non RiceYears Rp. X = Number of Family Spearman rank-order correlation: N = Number of Sample di = X i – Y Y = Proportion of Rice Expenditure X 1 = Price of Rice X 2 = Total of Non-rice Expenditure of Rice Rp.Year X 3 = Education Head of Household Primary School = 1; Junior high school = 2; Senior High School = 3; baccalaureate = 4; bachelor = 5 X 4 = Education of Housewife Primary School = 1; Junior high school = 2; Senior High School = 3; baccalaureate = 4; bachelor = 5 X 5 = Perception to Rice Rice could not be substituted to other carbohyd-rate = 0, rice could be substituted to other carbohydrate, but they were not adopting = 1; rice could be substituted to Other Carbohydrate, and they were adopting = 3 RESULT AND DISCUSSION Factors that Affecting the Demand of Rice Tables 2 and 3 present the regression analysis both simultaneously and partially The result showed that, all of the variable in the model influenced to the demand of rice significantly p 0.000. As same as the test partially, except the price of rice and household income levels. In the model summary, revealed that, R square was 0,369. Its mean that 40 of the variables in the model was be able reveal the factors that influence to the proportion of the rice demand. Table 3 reveal that the number of the family members correlated to the proportion of demand for rice positively, while the total of the non-rice carbohydrate expenditures correlated negatively. This means that, the the higher the total of non-rice carbohydrates expenditures, the lower the rice demand, whereas, the more the number of family, the more the proportion of spending for rice. Although the price of rice and the level of income has no effect to the demand of rice significantly, the results of this study had be able to reveal consumer behavior as a result of the effect of substitution and income. These findings contributed to the results of previous studies. Table 3. Analysis of Varians Factors Affecting Proportion of Rice Demand b Model Sum of Squares df Mean Square F Sig. Regression 288064.605 4 72016.151 15.490 .000 a Residual 441674.395 95 4649.204 Total 729739.000 99 a Predictors: Constant, Rice Price X 1 , Income Level X 2 , Total Expenditure of Non Rice Carbohydrate X 3 , Number of Family X 4 b Dependent Variable: The Demand of Rice N N 3 N 1 i d 2 i 6 1 rs      Zaini Amin 275 Microeconomictheory expressed that one of the determinants of demand for an item to be influenced by the level of prices of goods and the prices of other goods. The price of rice and food affect the level of consumption substitute of rice because it deals with the purchasing power of consumers. If the prices of goods rise, consumers will tend to reduce consumption as a result of the reduced purchasing power Salvatore, 2006; Mankiw, Quah, and Wilson, 2008; and Al Arief and Amalia, 2010. Some of the research showed that the effect of rice prices on household consumption of rice is identical with the level of income, to the high income level, there was no effect to the consumption significantly, even likely level of consumption will increased Asmani, 2003; Chen et al., 2008; and Yunita and Riswani, 2013. In the area of the research showed that the average of the family income was Rp. 67,210,096. This means that the average household income levels were high enough. Therefore logically, if the price changes will not affect demand for rice significantly Table 3. Regression Coefficients a of the Factors Affecting the Demand of Rice Model Unstandardized Coefficients Standardized Coefficients T Sig. B Std. Error Beta Y 124.632 80.519 1.548 .125 X 1 .000 .007 .004 .043 .966 X 2 3.589E-8 .000 .035 .427 .670 X 3 .000 .000 -.241 -2.783 .006 X 4 45.469 6.908 .555 6.582 .000 a. Predictors: Constant, Rice Price X 1 , Household Income X 2 , Non Rice Carbohydrate Expenditures X 3 , and the Number of Family X 4 . b. Dependent Variable: The Demand of Rice Y Proportion of the Rice Consumption Consumer behavior is analyzed using the Spearman-rank order correlation Table 4. Table 4 show that the proportion of rice expenditure was negatively correlated to the price of the rice, the total expenditure of the non-rice carbohydrate, and household perception to rice, significantly. This mean that, the lower the price of rice, the total expenditure of non rice carbohydrate, and the house perception to the rice, the higher the proportion of the rice spending. otherwise the higher the price of the rice, the total consumption of the non-rice carbohydrate expenditure, and the perception to the rice, the lower the proportion of the rice spending. This mean that, due to price increases have led to changes riel income, so it will lead to changes in consumer behavior. These findings was correspond with the research before. Asmani 2003 showed that, If the prices of rice rise, consumers will tend to reduce consumption as a result of the reduced purchasing power or decrease of riel income, and be replaced by substitution of carbohydrate like tubers or corn. Conversely, if the price of rice falls, consumer will tend to rise consumtion. Furthermore, how other factors work to encourage a change in the consumer behavior.?. The data in Table 4 also revealed that, the shift in the proportion of rice consumtion to non-rice carbohydrate was influenced by the educational level of the head of family and the perception the household to the rice. Logically, in a patrilineal society, decisions are determined by the head of the familyfather, while perception to rice was effected by the level of education of the head of the family. Its was correspon to the research that implemented by Shuai 276 2014; and Whu at al. 2014 that, relating to consumer behavior, there are great differences of the purchasing behaviour between different types of consumers, especially those who are highly educated and better paid in economically, was highly correlated with the level consumer’s education and perception. Table 4 . The Correlation of the Proportion of the Rice Expenditures Y to the Rice Price X 1 , the Total Expenditure of Non-Rice Carbohydrates X 2 , Head of Household Education X 3 , Education Housewife X 4 , and Household Perception Against Rice X 5 Variabel Y X 1 X 2 X 3 X 4 X 5 Spearmans rho Y Correlation Coefficient 1.000 -.342 -.887 -.176 .026 -.358 Sig. 2-tailed . .000 .000 .079 .795 .000 N 100 100 100 100 100 100 X 1 Correlation Coefficient -.342 1.000 .478 .287 .109 .019 Sig. 2-tailed .000 . .000 .004 .282 .854 N 100 100 100 100 100 100 X 2 Correlation Coefficient -.887 .478 1.000 .169 -.080 .360 Sig. 2-tailed .000 .000 . .092 .430 .000 N 100 100 100 100 100 100 X 3 Correlation Coefficient -.176 .287 .169 1.000 .630 .163 Sig. 2-tailed .079 .004 .092 . .000 .106 N 100 100 100 100 100 100 X 4 Correlation Coefficient .026 .109 -.080 .630 1.000 -.017 Sig. 2-tailed .795 .282 .430 .000 . .870 N 100 100 100 100 100 100 X 5 Correlation Coefficient -.358 .019 .360 .163 -.017 1.000 Sig. 2-tailed .000 .854 .000 .106 .870 . N 100 100 100 100 100 100 . Correlation is significant at the 0.01 level 2-tailed. Zaini Amin 277 The essence of the finding above that, the food policy should be shifted, especially in the supply of rice. The increase of the rice prices should not be responded by the adding of the rice supply, but modified by the adding of non- rice carbohydrate supply. In the long term, the policy will shift a pattern of the consumption or changes in consumer behavior in the consumption of carbohydrates, so that reduces dependence to the rice. CONCLUSION The demand of rice was affected by the the rice price, household income, the the total expenditure of the non-rice carbohydrates, and the number of family significantly. As same as partial analysis, except household income levels. Number of the family members correlated to the proportion of the rice demand positively, while the total of the non-rice carbohydrate expenditures correlated negatively. The proportion of rice carbohydrate spending was negatively correlated with the price change of the rice, and total expenditure of non rice carbohydrate, perception to rice, and head of household education significantly. Thus, the higher the price of rice, total expenditure of non rice carbohydrate, and the perception to rice, the lower the proportion of spending rice or the higher the price of the rice, the total consumption of the non-rice carbohydrate expenditure, and the perception to the rice, the lower the proportion of the rice spending. REFERENCES Al Arief, M.N.R. and E. Amalia. 2010. Teori Mikro Ekonomi: Suatu Perbandingan Ekonomi Islam dan Ekonomi Konvensional . Jakarta: Kencana Prenada Media Group. Badan Pusat Statistik. 2015. Statistik Indonesia-Statistical Yearbook of Indonesia 2015 . Jakarta: Badan Pusat Statistik-Statistics Indonesia. Chuanmin, S., Y. Xiaomin, Z. Yukun, S. Chuanxi, and D. Penghui. 2014. Consumer behaviour on low-carbon agri-food purchase: a carbon labelling experimental study in China. Agric. Econ-Czech 603: 133-146. Dhraief, M. Z. M., Oueslati, and B. Dhehibi. 2012. Income, education and age effeccts on meat and fish demand in Tunisia. International Journal of Food and Agricultural Economics 12: 1-12. Kumar, P., A. Kumar, S. Parappurathu and S.S. Raju. 2011. Estimation of demand elasticity for food commodities in India. Agricultural Economics Research Review 241: 1-14. Li, J. C., W. M. Tian, J. M. Wang, B. Malcolm, H. B. Liu, and Z. Y. Zhao. 2013. Recent food trends in China and trade implication to 2020. Australasian agribusiness Review 21: 16-44. Liu, H., Kevin, A.P., Zhang, Y.Z., and Rod, C. 2009. At home meat consumption in China: an emperical study. Australian Journal of Agricultural and Resource Economics 19: 203-221. Mankiw, N. G., E. Quah, and P. Wilson. 2008. Priciples of Economics An Asian Edition . Singapore: Cencage Learning Asia Pte. Ltd. Salvatore, D. 2006. Schaum’s outline: Microeconomics. Singapore: Fourth Ed. McGraw-Hill Companies, Inc. Sheng, T.Y., M.N. Shamsudin, Z. Mohamed, A.M. Abdullah, and A. Radam. 2008. Complete demand systems of food in Malaysia. Agric. Econ. – Czech. 5410: 467-475. Syrovátka. 2001. Preference of meat and meat product purchases in selected housholds’ categoris. Agric. Econ.- Czech 4711: 514-520. 278 . 2007. Exponential model of the engel curve: application within the income elasticity analysis of the Czech Housholds’ Demand for Meat Product. Agri. Econ.-Czech 539: 411-420. Wu, B., Y. Chen. W. Si., and H. Chien. 2014. Analysis of demand for powdered milk: evidence from household survey data in an urban Chinese Province. Agribusiness Journal 303: 331 –344. Wiley Periodicals, Inc. Published online in Wiley Online Library http:wiley- onlinelibrary. comjournalagr. Yunita and Riswani. 2013. Behavior of household rice consumtion in defferent income level. International Journal of Humanities and Management Sciences IJHMS 13: 220-224. Zaini Amin 279 DISCUSSION FROM PARALLEL SESSION PAPER TITLE Rice Consumer Behavior in The Face of Price Changes AUTHOR Zaini Amin DISCUSSION QUESTION ANSWER SUGGESTION - The conclusion hasn’t been able to illustrate how rice consumer behavior will change in the face of price changes, since result of analysis showed that price change caused no significant effect consumer behavior - Explain more on change the title: without “The Face” and adding the place - Preferably change to better suited title. 280 ANALYSIS OF CONSUMER PERCEPTIONS AGAINST LOCAL AND IMPORT FRUITS IN MEDAN Hadriman Khair Faculty of Agriculture, Universitas Muhammadiyah Sumatera Utara Jl. Kapt. Mukhtar Basri No. 3 Medan corresponding author: hadrimankhairgmail.com ABSTRACT This study was aim to to analyze Consumer perception in Medan against local and import fruits as well as any factors affecting consumer products to purchase local and import fruits. Some 350 respondents were interviewed using a questionnaire. The data is obtained has been analyzed using descriptive analysis, perception analysis, factor analysis and test data quality. The descriptive analysis shows that the majority of respondents were aged 17-24 years, male 72,9, college students and recent high school education 93,4 . In the analysis of the perception there are 350 respondents who answered the questionnaire returns and then there were 263 respondents to know when to ask do you know about the local fruits on the market, while 87 respondents have heard and know little. Ther are 350 respondents who answered the questionnaire returns and there were 186 respondents who answered knew when asked do you know about fruit imports in the market. The remaining 162 respondents had heard of but knew little and 2 respondents claimed not to know. For the factor analysis KMO test value obtained for 0.746 great for the meticulous sampling, commonality 0.384 to 0.770 and total variance is 46,986 percent. In the quality test data on the reliability of the test can be of value for Cronbachs Alpha based on standardized items 0.782 is greater than the basic standard Cronbachs Alpha 0.756 which can be deduced that the grains realibel questions. Keywords : perception, local, import, fruit, medan INTRODUCTION In recent years some products imported fruits are found in the market Indonesia, especially in Medan. Once the swift pace of imports of fruit, is now imported fruits such as apples, oranges, pears, grapes, kiwi fruit, plump and others more familiar to our ears. Even to get easy now, because in small towns also are sold by vendors including Medan. The most adverse impact that our fruits become increasingly unfamiliar in own society and ultimately not desirable. Under the laws of economics, if we are not interested in the fruit will cause lower demand for our fruit, resulting in price reductions. The lower prices is clearly not encourage manufacturers to produce passion for profits will be smaller. If this situation continues, the fruit was just waiting for the extinction of course. At the time of the fruit in the country increasingly inefficient to produce, it will improve the efficiency of production of fruit imports, as demand for imported fruit growing. These conditions, it is possible overseas manufacturer to be able to reduce the selling price as a result of the growing market share or cover a variety of costs, including promotion costs. These conditions will make consumers who previously consumed fruit in the country to switch to imported fruit. Consumers purchase a variety of foods with different reasons and different Hadriman Khair 281 characters. Research in the past demonstrated a variety of reasons, among others, is the sense and the need for such food Harris, 1997; Boland et al., 1999. Demographic and socio-economic character is a common thing in the encounter of different forms of understanding, attitudes and perceptions of consumers Ott et al., 1991; Byrne et al ., 1991; Underhill and Figueroa, 1996. Van Ravensway 1988; Misra et al. 1991 argues that the perception and attitudes towards a range of quality food for consumers depends on the demographic and socio-economic character of the consumer. Acharya 2001 reported that consumers choose foods influenced by several factors including consumer confidence, culture, environment, education, social character demographic and economic status as well as a biological necessity. A similar argument applies to consumers with different regions and countries. It is caused by a variety of consumer views related to factors in the regions and countries include culture and education system. Consumer knowledge of the various qualities of these products in different regions and different countries would be the main thing in the decision- making process. Therefore seeing increasing sales of imported fruits in Medan either by small traders, middle and hypermarkets this study is to analyze consumer perceptions of local fruits and imports in Medan. Furthermore, the formulation of the problem in this study to analyze consumer understanding and response in Medan against local and Import Fruits and factors affecting consumers to buy products local and import fruits. METHOD Three hundred fifty in-person interviews were conducted in March-April 2016 with located in Medan city. Determining which areas are sampled and respondents defined as the amount of research conducted with proportionate stratified random sampling. The main purpose of survey was to collect data on individual perception. Respondents were asked to answer several questions group in the three main sections of the questionnaire. In the first section, identify the socio- demographic individual characteristics of consumers: age, sex, education and occupation. In second section is dedicated to the evaluation of the consumer’s perception against local and import fruits. In third section is dedicated to the evaluatioan of factors affecting consumers to buy products local and import fruits. Primary and secondary data collection is done by the survey is to do an interview, fill out a questionnaire and the use of libraries. The list of questions consist of 47 questions with answers using a Likert scale of 5 points. Respondents asked to provide answers to how far respondents answered questions in the questionnaire. Score is as follows: a. Answer strongly agree= 5 score, b. Answer agree= 4 score, c. Answer neutral= 3 score, d. Answer disagree= 2 scores, e. Answer strongly disagree= 1 score. The analysis used in this research include descriptive analysis, factor analysis and data analysis techniques to conduct testing only in so test first non- response bias. Then proceed with a quality test data in the form of test reliability and validity test. Furthermore, the classic assumption test including normality test, multicollinearity test, autocorrelation test and test heteroskedasitas. The test while using a data processing software Statistical Package of Social Science SPSS version 21.0. RESULT AND DISCUSSION Three hundred fifty consumers who returns the questionnaire shows that the majority of respondents were male 255 72.9 and 95 female 27.1. The age of respondents between 17-50 years old. The age of 19 years become the most respondents with 107 respondents 30.6. The education level of respondents between the primary school to the university where the most 282 respondents have senior high school SMU with 272 respondents 93.4. While the most respondents occupation is self-employed with 158 respondents 45.1. Previous marketing research has suggested that food consumption behavior is not consistent across the country Govindasamy and Italia, 1998. For instances, Nagya 1997 documented statistical differences suggesting that expenditure on fresh vegetable and nutritional label usage differs among national regions. For respondents who know the local fruits on the market in Indonesia, especially in Medan were 263 respondents 75.1 compared to respondents who know of imported fruits were 182 respondents 53.1. Respondents obtain information related to local fruits that circulated in Indonesia, especially in Medan most through TV Radio that 142 respondents 40.6. However, information about imported fruits circulating in Indonesia, especially in Medan also most respondents get from television radio that 205 respondents 58.65. Similarly with Govindasamy and Italia 1997 found that reading food advertisement and reading food safety articles are inversely related. However, producers, marketers and consumers both realize that lack of information about organic produce is a deterrent to its demand Harris et al., 2002 Previous studies van Ravenswaay, 1988; Misra et al., 1991 suggested that perceptions of and attitudes toward food quality among consumers vary depending on the demographic and socioeconomic characteristics of consumers. The same perceptions may be also true for consumers from different regions and different countries. This is because consumer perceptions are related to region or country-specific factors, Such as health education systems and cultures. Knowledge of consumer perceptions of food quality in different regions and countries will aid in the decision making processes of production, marketing and export of fresh vegetables. Analysis of consumers perception of local fruits in Indonesia, especially Medan get a result in Table 1. Hadriman Khair 283 Tabel 1. Summary list of questions on consumer perceptions of local and import fruits market in Indonesia, especially in Medan Question Selected answer Mean Rank 1 2 3 4 5 What do you think about the local Fruits: Same with import fruits 19 56 127 138 10 3,18 2 More expensive than import fruits 12 82 113 124 19 3,16 3 The content of nutrients higher than import fruits 32 97 176 43 2 2,67 7 Healthier consumed than import fruits 57 99 166 25 3 2,48 10 Fresher than import fruits 54 106 151 37 2 2,51 8 More good shape texture than import fruits 8 73 197 71 1 2,95 5 Better taste than import fruit 22 91 196 41 2,73 6 Free of the chemicals than import fruits 76 89 131 50 4 2,47 11 Free from genetic engineering than import fruits 65 118 137 28 2 2,38 13 It is better for the environment than import fruits 64 125 138 22 1 2,34 14 More safe for consumption by other living organisms than import fruits 54 109 148 36 3 2,50 9 The packaging is better than import fruits 10 39 171 120 10 3,23 1 Their availability on the market more than import fruits 65 135 110 41 3 2,40 12 Easier be found in the market than import fruits 75 144 99 30 2 2,26 15 Having a product label so easy to remember if bought elsewhere than import fruits 18 59 173 88 12 3,05 4 What do you think about the import fruits: Same with local fruits 8 54 121 152 15 3,32 3 More expensive than local fruits 63 151 84 49 3 2,36 11 The content of nutrients higher than local fruits 12 56 223 56 3 2,95 8 Healthier consumed than local fruits 8 28 209 99 6 3,19 4 Fresher than local fruits 17 83 160 80 10 2,95 8 More good shape texture than local fruits 39 137 144 25 5 2,48 10 Better taste than local fruit 12 76 207 48 7 2,89 9 Free of the chemicals than local fruits 6 35 159 132 18 3,34 2 Free from genetic engineering than local fruits 6 25 173 133 13 3,35 1 It is better for the environment than local fruits 10 36 191 103 10 3,19 4 More safe for consumption by other living organisms than local fruits 6 30 215 90 9 3,18 5 The packaging is better than local fruits 60 172 98 17 3 2,23 13 Their availability on the market more than local fruits 18 72 149 104 7 3,03 7 Easier be found in the market than local fruits 17 75 144 105 9 3,04 6 Having a product label so easy to remember if bought elsewhere than local fruits 55 161 107 25 2 2,31 12 Source: The results in 2013 data processing Note: 1= Strongly agree, 2= agree, 3= Neutral, 4= Disagree, 5= Strongly disagree 284 For perceptions on consumers of local fruits market in Indonesia, especially in Medan, Most states strongly agree that local fruits; free of the chemicals than import fruits are 76 respondents. Respondents most agreed with the question; local fruits more easily found in the market than import fruits are 144 respondents. For questions answered respondents with the highest neutral answers to the question; local fruits were nicer shapetexture than import fruits are 197 respondents. Respondents disagree with the highest answer to the question; local fruit is the same as import fruits with 138 respondents. For perceptions on consumers of import fruits in Indonesia market, especially in Medan, Most states strongly agree that import fruits; more expensive than the local fruits are 63 respondents. Respondents most agreed with the question; fruits imported packaging is better than the local fruits 172 respondents. Respondents answered the question with the highest neutral answers is; the content of nutrients import fruits higher than local fruit are 223 respondents. Respondents disagree with the highest answer to the question; local fruits are the same as local fruits with 152 respondents The result showed that consumers have the same perceptions that local fruits are not the same with import fruits. Food preferences play an important role in food selection because they given an indication of the amount of satisfaction an individual anticipates from eating food. Preferences are a result of psychological development and social experiences and related to the degree of killing a food Asp, 1999. For the main factors respondents buy fruits found that the result of packaging obtain the highest mean score was 2.5 followed by label product was 2.46; its availability in the market was 2.42; price was 2.33, texture was 2.29; colour was 2.28; freshness was 1.76; taste was 1.65 and nutritional value was 1.75. the results in Table 2. Table 2. Summary list of questions about the main factors respondents buy fruits Question Selected answer Mean Rank 1 2 3 4 5 What is your main factor buy fruits: Price 65 118 154 10 3 2,33 4 Taste 158 121 70 1 1,75 8 Freshness 174 92 79 5 1,76 7 Colour 68 122 153 5 2 2,28 6 Nutritional value 198 75 77 1,65 9 Texture 68 122 150 8 2 2,29 5 Packaging 45 96 185 21 3 2,5 1 Its availability in the market 43 134 159 11 3 2,42 3 Label product 58 95 176 19 2 2,46 2 Source: The results in 2013 data processing Note: 1= Strongly agree, 2= agree, 3= Neutral, 4= Disagree, 5= Strongly disagree Hadriman Khair 285 It is assumed that consumers formulate their perceptions from available information, knowledge, experiences, and given environmental factors, which may include personal characteristic, social and cultural back ground. This is so that consumer perceptions is hypothesized to influences attitude via the cognitive process that converts perceptions and evaluative criteria into attitudes, which in turn may cause and lead to changes in perceptions and choice behavior Huang, 1993. The results of KMO The Keiser- Meyer-Olkin sampling adequacy test and barlett’s test of sphericity were used to measure sampling adequacy and the presence of correlations among the variables respectively. The value of KMO Measure sampling adequacy for this set of variables is 0.746, which is labeled as moderate. In this study, cronbach’s alpha was used to measure the reliability of 47 relevant variables that are being used in factor analysis. From the analysis, the standard item alpha is 0.756. The internal reliability of each factor has also been tested. The alpha score for each factor is more than 0.7. The guideline of alpha was 0.5 to 0.6 for explanatory research Nunnaly, 1978. However, Peter 1979 stated that nunnaly’s guideline should not be accepted as an absolute standard in a marketing research. Peter suggested that those reliability levels that are less than 0.5 might be acceptable in marketing research. So in this study, the alpha score is more than 0.7 which it’s acceptable. CONCLUSION The results of this research will be useful in the marketing of local and import fruits. The analysis indicated that consumers have good perception towards local and import fruits. The results of the study could be more accurate, but due to the different socioeconomic factors of respondents, they may have different interpretation and understanding of questionnaire. Thus, they may have reported inaccurate information and answers. Furthermore, the accuracy of data obtained depends on the respondents’ willingness to cooperate and their honesty in answering the question given. Base on the results of this study, consumers should be helpful if government make exhibition for local and import fruits in terms of fruit fair or the same kind like that, which are to show, to introduce and educated peoples especially consumers’ fruits for make their perceptions of local and import fruits better than before. The improvement in information local and import fruits should be made to increase its consumption and meet identified market needs. ACKNOWLEDGEMENTS This research was sponsored by University Muhammadiyah North Sumatra UMSU. The opinions expressed here do not necessarily reflect those of the funding agencies. REFERENCES Acharya, Ram N. 2001. The role of health information on fruits and vegetable consumption. American Agricultural Economics Association Annual Meeting, Chicago, IL, August 5 – August 8. Asp, Elaine H. 1999. Factor affecting food decisions made by individual consumers. Food Policy 24 2-3: 287-294. Boland, Michael, Fox, John Sean, and Darrel Mark. 1999. Consumer willingness-to-pay for pork produced under an integrated meat safety system. Western Agricultural Economics Association Annual Meeting July 11-14. Fargo, ND. Byrne, P., Conrado Gempesaw II., and Ulrich Toensmeyer. 1991. An evaluation of consumer pesticide residue concerns and risk perceptions. Southern Journal of Agricultural Economics 232. Govindasamy, Ramu., and Jhon Italia. 1997. Predicting the Influence of Demographic Characteristics on the Willingness to Pay for Fresh Fruits and Vegetables : A Logistic Approach. Journal of Food Products Marketing, 44, pp.25-38. 286 Govindasamy, R., and Jhon Italia. 1998. A willingness to purchase comparison of integrated pest management and conventional produce. Agribusiness 145: 403- 414. Harris, J. Michael. 1997. Consumer pay a premium for organic baby foods. Food Prices. May-August, pp. 13- 16. Harris, B., Burress, D., and Eicher Sharon. 2002. Demands for Local and Organic Produce: A Brief Review of the Literature. Institute for Public Policy and Business Research, University of Kansas. Huang, Chung L. 1993. A simultaneous system approach for estimation of consumer risk perceptions, attitudes and willingness to pay for residue-free produce. Selected paper presented at the American Agricultural Economics Association Meeting, Orlando, FL. Misra, S., C. L. Huang., and S. Ott. 1991. Consumer willingness to pay for pesticide free fresh produce. Western Journal of Agricultural Economics 161991: 218-227. Nayga, R. M. Jr. 1997. Obesity and heart disease awareness: a note on the impact of consumer characteristics using qualitative choice analysis. Applied Economics Letters 44: 31- 229. Nunally, Jum C. 1978. Psychometric Theory . New York: McGraw-Hill Book Company. P. Peter, J. Paul. 1979. Reliability: a review of psychographic basics and recent marketing practices. Journal of Marketing Research 162: 6-17. Ott, Stephen. L., Huang, Chuang. L., and S. K. Misra. 1991. Consumer Perceptions of Risks from Pesticide Residues and Demand for Certification of Residues-Free Produce . New York: Economics of Food Safety, J. A. Caswell, Ed., Elsevier Science Publishing. Underhill, S., and Enrique Figueroa. 1996. Consumer preferences for non-conventional grown produce. Journal of Food Distribution Research 272. Van Ravenswaay, Eileen O. 1988. Consumer attitudes toward food safety. Ag. Econ. Staff Paper 88-87, Michigan State University. Hadriman Khair 287 DISCUSSION FROM PARALLEL SESSION PAPER TITLE Analysis of Consumer Perception Against Local and Import Fruits in Medan AUTHOR Hadriman Khair DISCUSSION QUESTION ANSWER SUGGESTION - Sampling method is conducted with proportional stratified random sampling. Specifically, what kind of proportional stratified sampling is need to explain in more detail - Qualitative analysis with scoring to be tested regarding its validity and reliability - Within conclusion hasn’t been stated clear enough whether consumer’s perception of local fruits is better compared to imported ones and how that perception influenced their decision to buy fruits - Please explain the research method especially in the sampling - Split the discussion into local and imported fruits in the discussion section 288 CONSUMERS’INTENTION TO PURCHASE GENETICALLY- MODIFIED SOYBEAN PRODUCTS IN MALAYSIA Welson Chin Vui Son 1 , Kelly Wong Kai Seng 1 , and Juwaidah Sharifuddin 1 1 Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia 43400 UPM Serdang, Selangor Darul Ehsan, Malaysia Corresponding author: kellywongupm.edu.my ABSTRACT In this study, the main objective is to determine the consumers’ intention to buy the GM soybean products in Malaysia. In order to analyze the consumer intention, the theory of Planned Behavioral Model hereafter TPB is employed and a survey with 215 respondents was conducted in Klang Valley, Malaysia. Firstly, the factor analysis is use to identify the possible variables influence the consumers’ intention to purchase the GM soybean product. Furthermore, the logistic regression is employed to examine the significant relationship between the influence factors to the consumers’ intention to buy. In this study, the result shows that there are 4 main factors that will influence the acceptance of consumer toward GM soybean products which are consumer awareness, perceive values, knowledge and subjective norms. Furthermore, the factor score for these four identified factors are applied into the binary logistic regression and to examine the significant factors influence the probability of consumer’s intention on purchase the GM soybean products. The binary logistic result shows that consumers’ positive awareness, perceive values, and gender have statistically significant at 5 significance level. This indicates that there is enough statistical evidence to support tha t the consumers’ intention to purchase the GM soybean products can be influenced by the three important factors, i.e. consumers’ positive awareness; positive perceive values on the GM products, and the respondents’ gender. Keywords: Genetic Modified, Soybean products, Consumers’ intention, Malaysia INTRODUCTION Soybean is a famous oilseed crop and it is widely used by the world population. This commodity can be processed into so many different types of products whether processed in food products such as soy milk, soy vegetable oil, tofu, soy sauce, tempeh, and etc. or non-food products likes livestock feed. In the recent decades, soybean is mainly produced by the top five countries, namely United States, Brazil, Argentina, China, and India. Based on the United States Department of Agriculture, these top five 3 See world soybean production 2014, SoyStats 2015 and downloadable from countries were contributed about 89 of the international soybean production in 2014, i.e. 34 from United States, 30 from Brazil, 18 from Argentina, 4 from China, and 3 from India, respectively. Due to the international higher demand for soybean, the international total exported soybean in 2014 was recorded about 117.4 million metric tonnes. However, this number of exported soybean is mainly contributed by United States, Brazil, and Argentina which are the top three exporters in the world soybean market and consists of 41, 39, and 7 of the total market share, respectively. 3 http:soystats.cominternational-world- soybean-production Welson Chin Vui Son, Kelly Wong Kai Seng , and Juwaidah Sharifuddin 289 Figure 1 World Soybean Production 2014 Source: SoyStats 2015 In 90s, the cultivation of genetically modified hereafter, GM crops is booming across the world and there are more than 80-fold of crops are under the GM in 1996 Fatima et al., 2011. Since 1994, the first GM soybean was approved by the United States Department of Agriculture. After few decades, there are about 99 of all GM cultivars planted in worldwide is in GM soybean, cotton, and corn James, 2009.Besides that, about 77 of the worldwide soybean planted area is regarded to GM soybean and only 23 is planted with non-GM. As a top three soybean exporters in the international market, i.e. United States, Brazil, and Argentina are also become as the world leaders in using GM seeds. 4 This shows that the GM cultivation is widely acceptable by the producers and farmers. Malaysia is one of the soybean imported country and used it to produce as soybean based food product, animal feed and other raw material. According to 4 According to Fatima et al. 2011, the GM seed market was contributed about US 10.5 billion per annum to the world agriculture sectors. 5 Malaysia agricultural biotechnology annual report 2013. Downloadable from: Tosiah, A. 2005, there are some of the soybeans products are contained GM traits and are sold commercially in the market. However, there are not all of the consumers are aware about this phenomenon because there are no transparency information put on the soybean products’ label. In 2014, there are 3.8 million tonnes of corn, 1.4 tonnes of soybean meal and 577 thousand tonnes of soybean are imported by Malaysia. However, these imported crops have high percentage of genetically engineered GE content and only 90 thousand tonnes of imported soybeans were identity-preserved non-GE soybeans. 5 In2010, the first imported GM soybean in Malaysia approved by Ministry of Natural Resources and Environment Malaysia is Roundup Ready Soybean from Monsanto Company, United States. After few years, there are increased to six types of different GM soybeans are imported to Malaysia as shows in Table 1. http:gain.fas.usda.govRecent20GAIN20 PublicationsAgricultural20Biotechnology2 0Annual_Kuala20Lumpur_Malaysia_7-10- 2015.pdf 290 According to Bashir I. 2013, there are two important information founds in his study: i not 100 of consumers have enough knowledge and be aware of GM products in Malaysia, and ii although 67 are aware of GM products, but this don’t represent that the consumer can identify which product is from GM. As a consumer, there have a right to know the sources of the products’ ingredient. However, there is lack of information share from producer to their consumer. Even the GE food and ingredient labeling regulation was to take effect on 8 th July 2014 in Malaysia, but, it was still not being implemented yet. 6 In addition, there are no official announcements from the Ministry of Health Malaysia about the labeling issues. Table 1 Varieties of GM Soybean Imported to Malaysia Variety Date and Year of approval Company Roundup Ready soybean 25 May 2010 Monsanto Company Herbicide Tolerant soybean 28 Mar. 2012 Bayer Co Malaysia Sdn Bhd. Roundup Ready2 Yield soybean 27 Nov. 2012 Monsanto Company Imidazolinone Tolerant CV127 soybean 23 Oct. 2013 BASF Malaysia Sdn Bhd. Glufosinate TolerantLibertyLink® soybean 11 Feb. 2014 Bayer Co Malaysia Sdn Bhd. Glyphosate and Isoxaflutole Tolerant FG72 19 Dec. 2014 Bayer Co Malaysia Sdn Bhd. Sources: Ministry of Natural Resources and Environment, Department of Biosafety 7 The argument about the safety consume of GM product is a main issues to show that the acceptance level on the demand side is need to be re-clarified. Based on the ideal of food security and researcher suggestions, the GM crops are 6 Ministry of Health Malaysia was published the n ew Guideli es for the la eli g of foods a d food ingredients obtained through modern iote h ology i April . This do u e t is downloadable from: http:fsq.moh.gov.myv5imagesfilepicker_use claimed as an important product to produce and to support the current situation of increasing of world population, i.e. “feed the world” or “feed the hungry world”. However, food is not just produce to eat but must also be safe. There are rs5ec35272cb- 78PerundanganGarispanduanPelabelanGUIDE LINES-ON-LABELLING-OF-FOODS-AND-FOOD- INGREDIENTS-PRODUCED-FROM-MODERN- BIOTECHNOLOGY_2012042013-p.pdf 7 See also http:www.biosafety.nre.gov.my Welson Chin Vui Son, Kelly Wong Kai Seng , and Juwaidah Sharifuddin 291 some scientific evidences are found in the previous literatures which is the GM food have a risk to harmful the human body system and it is possible not safe to consume. For example, the GM food has a possibility cause to the human heavier uteri and higher rate of severe stomach inflammation Carman, et al. 2013. Hence, consumer may not accept the GM product if the scientists proven is known by consumer. At the meantime, this also indicates that the consumer right is not protected in the market. In order to increase the consumer awareness on GM soybean products, the significant determinant factors must be identify. In the nutshell, there are structure changed in Malaysia’s soybean products processing channel and there are few companies are imported the GM soybean to produce food, feed and other processing purpose. However, not all the consumers are aware that soybean product is processed from imported GM soybean. The lack of information sharing to the consumer indicates that the transparency of food safety in Malaysia soybean product is needed to pay more attention. Increase of consumer awareness can force the supplier to share the information and protect the consumer right to purchase or not to purchase. Besides that, the acceptance level of consumer on GM soybean products is needed to identify. To identify the consumer’s intention to purchase GM soybean product is important. Because the producers are possible to facing the market losses if the consumers are not accept the GM product. Hence, the motivation of this study is aim to investigate the consumer intention to buy GM soybean products in Malaysia. METHOD In this study, we aim to investigate the consumer’s intention to purchase the GM soybean products. Based on the literature reviews, the theory of Planned Behavior TPB proposed by Ajzen, I and Fishbein, M. 1980 is a usual method applied in the previous studies to examine the consumer intention and consumer behavior on food consumption see Magnusson, et al., 2001; Chung, et al., 2010; Rezai, et al., 2011; Wu and Chen, 2014; Tarkiainen, A. and Sundqvist, S. 2015; and etc.. Therefore, the conceptual framework for the consumer intention to buy GM soybean products is developed based on the TPB and show in the Figure 2. Figure 2: Conceptual Framework of the TPB Applied to GM Soybean Products Consumption in Malaysia Sources: Modified from Ajzen, I. and Fishbein, M. 1980 292 Based on the TPB, the consumer’s intention is determined by four main factors which are consumer attitude, subjective norms, and perceived value. Theory planned behavior is used as a basis of the conceptual framework for the study to give a better understanding of the human behavior that will predict deliberate behavior, because behavior can be deliberate and planned Ajzen, I. 1991.The model argues that human action is affected by 3 belief that is behavioral belief, normative belied and control belief. Behavioral belief is an individual’s belief about the result of the behavior and creates the individual attitude toward it. Normative belief is referring to the individual’s perception of how other will judge a particular behavior and produces subjective norms. Control belief refer to how an individual perception control her or she over the behavior, this is connected to perceived behavioral control. Ajzen, I. 1991.This perception is control by related factors that may facilitate or impede the performance of the behavior and depend on whether the individual perceives the behavior as easy or difficult to perform Ajzen, I. 2005. Theory Planned Behavior also shows that behavioral intention that predicts if an individual will perform a behavior, and it can be predicted by the attitudes, subjective norm, and perceived behavior control. In brief, if the person is more favorable the person’s attitude and perceived behavior control about the behavior and the more favorable the subjective norms, the stronger the pe rson’s intention toward the behavior; the stronger the person’s intention, the more likely he or she will perform the behavior. Ajzen, I. 1991. Data Collection This study used data collected from a survey which was carried out in July to September 2015 in Klang Valley. A total of 450 respondents is collected through the random sampling method and face-to- face interview at 10 local authority are Kuala Lumpur, MP Klang, MP kajang, MP Subang Jaya, MP Petaling Jaya, MP Selayang, MP Shah Alam, MP Ampang Jaya, Putrajaya and MP Sepang. This area is chosen because it has the highest population in Malaysia that is 5.7 Million in 2015. The primary data obtained through the questionnaires will be first transform into a suitable form of data through few steps such as coding, inputting data, editing and dealing with missing data. In this study, Statistical Package for Social Science SPSS is the statistical software use to analyze the collected data. Factor Analysis Factor analysis is a statistical method that can be used to analyze the pattern of correlation within a set of observed variables by identifying latent variables or factors. Besides that, factors analysis is usually hired to reduce the number of factors from a large number of measured variables. A large number of variables will be grouped into a group of variables with common factor or characteristic. Factor analysis involves in three steps in correlation matrix and used to generate all the variables. A correlation matrix is rectangular array of the correlation coefficient of the variable. Next, it extracts a set of initial factors from correlation matrix that produce from first step. Each of the variable will produces one component and is extracted from principal component analysis. Even though the analysis yields a lot of factors, the small factor loading that are less than 0.6 will be dropped. Therefore, a set of factor will be produce with the best line combination of variable that will produce more the variance in the data as a whole. Variable reduction purposes come from the basic form of model: Y= b 1 X 1 +b 2 X 2 ….+b n X n where Y = Linear combination of principal component or principal factor b 1 , b 2 ,…b n = Coefficient X 1 , X 2 ,…X n = Variable that are highly correlated with each other Welson Chin Vui Son, Kelly Wong Kai Seng , and Juwaidah Sharifuddin 293 Lastly, is to rotate the retained factors. The initial factors are hard to interpret. Thus, varimax rotation is used to rotate the initial factors to produce a solution that is more meaningful and easier to be interpreted. Logistic regression In this study, the dependent variable is the consumer intention to buy the GM soybean product CIGM. This variable is measure by the binary value, CIGM = 1 if the respondents intent to purchase GM soybean products and if the respondents not intent to buy. Based on the theoretical framework justified at the previous section, the consumer intention is determined by five independent variables, i.e. consumer awareness CAGM, consumer perceive value on GM soybean product CPGM, knowledge about GM soybean product CKGM, subjective norms SNGM, and the demographic variables Z. Hence, the logistic regression is re-write as: Logit CIGM = β 1 + β 2 CAGM + β 3 CPGM + β 4 CKGM + β 5 SNGM + β 6 Z +ε 1 where Logit CIGM = natural log odds = �� −�� β 1 , β 2 , β 3 , β 4 , β 5 , β 6 =estimated coefficients for independent variables ε = stochastic term. RESULT AND DISCUSSION In this study, respondent have to answer 34questions, which were on 5- point Likert scale from strongly disagree to strongly agree. Table 2 is the result of Kaiser-Meyer-Olkin KMO test of sampling adequacy and Bartlett’s test of Sphericity for the data collected from the market survey. These two tests were first formed on all the statements to confirm the appropriateness of conduction factor analysis Tabachnick and Fidell, 2007. In this study, the result of the KMO test showed the value of 0.897, indicating that the distinct and reliable factors is produced in this collected sampling. Besides that, the Bartlett’s Test showed that the estimated data is adequacy p- value less than 0.05 and this Bartlett’s test also confirm that the collected data sampling has patterned relationships amongst the variables. Table 2 Kaiser-Meyer-Olkin and Bartlett’s test of Sphericity KMO and Bartlett’s Test Kaiser-Meyer- Olkin Measure of sampling Adequacy Barlett’s Test of Sphericity x 2 df P-value 0.897 2185.705 171 0.000 After the varimax rotation of the consumer’s response of the 19 statements relating to their knowledge, perceive values, awareness and subjective norms to accept genetic modified soybean, the factor loading from the principal component factor analysis was obtained. From the result of the rotated matrix, only items with a factor loading of at least 0.6 and above are considered significant items. Table 3 shows the summarized result from factor analysis. The results show that four latent factors which influen ce the consumers’ acceptance toward genetic modified soybean products were identified. The factors were named based on the sub-variables that were found in each factors. Consumer’s awareness F1, perception value F2, knowledge F3 and subjective norms F4 which accounted for 65.699 of the total variance. The factor loading for four factors is from 0.632 to 0.866. Consumer awareness to purchase GM is the first factor that influenced consumers’ intent to buy GM soybean with highest total variance of 37.205. The positive awareness will affect the acceptance of consumer toward GM soybean. This shows that consumer will accept GM soybean if they have positive awareness on GM soybean products. The second factor that influence consumer acceptance toward GM 294 soybean products is their perceive values. This factor explained 15.208 of the total variance. As long as GM is safe to consume, they will accept GM soybean products. The third factor is knowledge. Knowledge is another factor that will influence their acceptance toward GM soybean products. The consumer knowledge had 7.266 total variance. This means that knowledge of GM is important to accept GM soybean products. The last factor is subjective norms. Subjective norms or social influence of consumer will affect their acceptance toward GM soybean products. The total variance explains for this factor is 6.019 of total variance. Thus, this means that external factor will also influence the acceptance of consumer toward GM soybean products. The Cronbach’s alpha value is determined by the reliability tests for consumers’ knowledge, perceives value, awareness and subjective norms question. The total Cronbach’s alpha for the consumers’ knowledge, perceive values, awarenessand subjective norms is 0.88. This showed that there was consistency among the theory planned or question and the model is fit for this study. Table 3 Summary of the Factor Analysis Results Binary Logistic regression In this study, the Binary logistic model was used to examine the significant relationship between estimated factors with the consumer’s intention to purchase the GM soybean products. The estimated result for the binary logistic regression is summarized in the table 4. The dependent Welson Chin Vui Son, Kelly Wong Kai Seng , and Juwaidah Sharifuddin 295 variable is the consumer intention on acceptance the GM soybean product and it’s recorded as ordinary data. The consumer intention to purchase is proxy by a dummy variable which 1 is refer to who are answer “yes” and intending to accept genetic modified soybean products and 0 for otherwise. The binary logistic result shows that there three independent variables consumer’s awareness, consumer perceive value, and gender are statistically significant to determine the consumer’s acceptance level on the GM soybean products. Table 4 Estimated Logistic models for Consumers’ acceptance toward genetic modified soybean products Notes: , and denotes as statically significant at 1 significance level and 5 significance level, respectively. a represent a maximum likelihood estimation. The estimated logistic result shows that the awareness of consumer is an important positive factor to determine the consumer intention to buy the GM soybean product. The estimated coefficient shows positive value of 1.163 and significant at 1 significance level. Besides that, the estimated exponent coefficient for the awareness is 3.202 which indicates that the respondent who have positive awareness then the respondent will more intent to buy the GM soybean product with 3.202 times more intent to buy GM soybean products than consumers’ who do not accept the GM soybean. Consumer perceives value toward GM products also an important factor that influences the intention of consumers to purchase the GM soybean products. The estimated consumer perception coefficient show positive value in 1.293 and statistically significant at 1 significance level. This illustrated that we have enough evidence to reject the null hypothesis and conclude that the consumer who have good perception on GM products will have higher intention to accept the GM soybean products. The estimated exponent coefficient for the consumer perceives value is 3.642, indicating that the consumers who have positive perceives values on the GM products will show 3.642 times more intent to buy the GM soybean products than the consumers’ who are have negative perceives value on GM food products. Furthermore, the third important factor determine the consumer intention to purchase GM soybean food product is gender. Gender play an important role in determines the consumer’s intention toward GM soybean products. In this logistic regression, the gender is a proxy by a dummy variable. If the respondent is male then will give a record of “1” and “0” is represent the female. In table 4, the estimated coefficient for gender is -0.072 and it is statistically significant at 5 significance level. It means that male is more willing to accept GM soybean products compare to female. This may due to increase of awareness of GM among male than female. Besides that, the result also shows that the male will give 0.496 times more intent to purchase the GM soybean products than the female consumer. Based on the Table 4, the other determinant variables are not statistically significant to determine the consumer intention to buy the GM soybean food products, namely knowledge on the GM products, subjective norm, age of consumer, and their education level. Since, the p-value for these four variables 296 is greater than 0.1 or 10 significance level. Hence, we have no enough statistical evidence to support that these variables are important to influence the consumer intention to buy the GM soybean food products. CONCLUSION In this study, we aims to investigate the factor influence the consumer intention to purchase GM soybean products. Based on the factor analysis, there are 4 main factors will influence the acceptance of consumer toward GM soybean products which are consumer awareness, perceives value, knowledge and subjective norms. Furthermore, the factor score for these four variables are applied into the binary logistic regression and to examine the significant factors influence the probability of consumer’s intent to purchase the GM soybean products. The binary logistic result shows that consumers’ awareness, perceives value, and the respondents’ gender have statistically significant at 5 significance level. This indicates that there is enough statistical evidence to support that the consumers’ intention to purchase the GM soybean products can be influenced by the three important factors, i.e. consumers’ positive awareness; positive perceives value on the GM products, and the gender. REFERENCES Ajzen, I., and Fishbein, M. 1980. Understanding Attitudes and Predicting Social Behavior . Upper Saddle River, Pearson. Ajzen, I. 1991. The theory of planned behaviour. Organizational behaviour and Human Decision Process 50: 179 –211. Ajzen, I. 2005. Attitudes, Personality and Behavior, 2 nd Edition . New York: Open University Press. Bashir, I., Rezai, G., Mohamed, Z., and Sharifuddin, J. 2013. ‘Malaysian Consumer Awareness and GM Food: What Are the Factors Influencing’. In Proceedings of 4 th International Conference on Business and Economic Research, Indonesia, 04-05 March. Carman, J. A., Vliger, H. R., VerSteeg, L. J., Sneller, V. E., Robinson, G. W., Catherine, A. C. J., Haynes, J. I., and Edwards, J. W. 2013. A long- term toxicology study on pigs fed a combined genetically modified gm soy and gm maize diet. Journal of Organic System 81: 38-54. Chung, J. E., Stoel, L., Xu, Y. J., and Ren, J. 2010. Predicting chinese consumers’ purchase intentions for imported soy-based dietary supplements. British Food Journal 1141: 143-161. Fatima, M. G., Pelegrini, P. B., and Fragoso, R. R. 2011. In sudaric a. ed., soybean – molecular aspects of breeding. Germany: In Tech, 429- 59. James, C. 2009. Global Status of Commercialized BiotechGM Crops: 2009. The International Service for the Acquisition of Agri- biotech Application ISAAA, 41. ISAAA: Ithaca, New York. Tosiah, A. 2005. Detection of genetically modified soy in processed foods sold commercially in Malaysia by pcr-based method. Food Chemistry 983: 575-579. Magnusson, M. K., Arvola, A., Hursti, U.K.K., Aberg, L., and Sjoden, P.O. 2001. Attitudes towards organic foods among swedish consumers. British Food Journal 1033: 209- 227. Rezai, G., Mohamed, Z., Shamsudin, M. N., and Phuah, K. T. 2011. Demographic and attitudinal variables associated with consumers’ intention to purchase green produced foods in Malaysia. International Journal of Innovation Management and Technology 25: 401-406. Welson Chin Vui Son, Kelly Wong Kai Seng , and Juwaidah Sharifuddin 297 Tabachnick, B. G., and Fidell, L. S. 2007. Using Multivariate Statistics 5th ed. . Boston, MA: Allyn Bacon. Tarkiainen, A., and Sundqvist, S. 2015. Subjective norms, attitudes and intentions of finnish consumersin buying organic food. British Food Journal 10711: 808-822. Wu, S. I., and Chen, J. Y. 2014. A model of green consumption behavior constructed by the theory of planned behavior. International Journal of Marketing Studies 65: 119-132 . 298 Discussion from Parallel Session PAPER TITLE Consumers’intention to Purchase Genetically- Modified Soybean Products in Malaysia AUTHOR Welson Chin Vui Son, Kelly Wong Kai Seng, and Juwaidah Sharifuddin DISCUSSION QUESTION - Why knowledge is not a significant factor for consumer to purchase GM Soybean product ANSWER - Knowledge beat awareness the more aware the consumers are the more it is influence their decision to buy the product SUGGESTION - Explain more about possitive awareness because the variable it seem to me, more rely on consumer’s perception - Choose the participants who have perfect knowledge for future. Development for Human Welfare 2016 299 CONSUMER PREFERENCE TOWARDS ORGANIC VEGETABLES AT SUPER INDO SULTAN AGUNG YOGYAKARTA Nisa Murty Andari 1 , Widodo 1 , Sriyadi 1 1 Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta Jl. Lingkar Selatan, Kasihan, Bantul Regency, Yogyakarta corresponding author: nisamurtygmail.com ABSTRACT The aims of this research is to find out how the consumers decision process on purchasing organic vegetables and their preference towards organic vegetables are. This is an quantitative research which use descriptive method. There are two brands and six atributes that being evaluated in this research. The brands are TOM and TOS, while the attributes are price, packaging, brand, freshness, variant of vegetables, and organic label. The data analysis techniques used in this research are descriptive and ideal point attitude model. The result of the research, which is taken from 44 respondents, shows that freshness is the most important attribute in organic vegetables. Consumers’ are being motivated to consume organic vegetable because of its better nutrient compared to non-organic. Magazine and newspaper are the source of information about organic vegetables that being accesed by mostly consumers. People feel good benefits to their health after consuming organic vegetables so they decided to continue consuming organic vegetables. Overall, TOM brand gained higher score than TOS brand, and consumer prefer to buy TOM’s organic vegetables. Keywords: consumer, preference, organic vegetable, product attributes, ideal point attitude model INTRODUCTION Nowadays, there is a popular lifestyle happening in some citizen of Yogyakarta. People prefer to consume low calories and high fiber food as their diet. Based on the data from Pusdatin, there is a decreasing amount of calorie consumption of Indonesian citizen from 2.014,91 kkal in 2007 then become 1.842,75 kkal in 2013 decreasing for 172,16 kkal. The biggest decreasing is in grain, with the amount of 76,58 kkal. Moreover, some people applied a high standar to their food by avoiding chemical material or pesticide. People try to find the best food which can bring the best benefit to their health, one of the way is by consuming organic food and organic vegetables. Consumers who try to follow a healthy diet and balanced life are likely to have more positive attitudes towards organic food products, inducing a more likely intention to purchase organic vegetablesBonti-Ankomah et. al., 2006. Organic vegetable’s consumers are selective consumer since they really wanted to experiencing best effects to their health. The consumers put a high attention to organic vegetable’s attributes. Organic vegetables are now available in some supermarket and grocery. Number of supermarket and grocery which sell organic vegetables is now getting higher. One of the well-known supermarket that sell organic vegetable in Yogyakarta is Super Indo Sultan Agung. Unfortunately, the variant of organic vegetables is limited. Due to that background, this study is aimed to find out how is the consumers purchase decision on buying organic vegetables and their preference in buying organic vegetables. Nisa Murty Andari, Widodo, Sriyadi 300 METHOD The supermarket was chosen to be location for this research because it has a lot of organic vegetables consumers and it provides more than one brand of organic vegetable. Data and information in this research is collected with observation and questionnaire. The observation aims to find out information about organic vegetables purchasing patterns and questionnaire used for determine consumers purchase decision process on buying organic vegetables and also their preference in buying organic vegetables. Data analysis techniques used in this research are descriptive and ideal point attitude model. Consumer purchase decision process is analyzed with data analysis descriptive and consumer preference on organic vegetables is analyzed with ideal point attitude model. Ideal point attitude model used for analyze the importance level for each attribute, how is the consumer’s evaluation to product attributes, and how is the consumer’s ideal standard about the attributes. Sampling technique used in this research is judgement sampling which means that not all the buyer of organic vegetables can be a respondent in this research. The respondent must have at least one time experience in consuming organic vegetable before. RESULT AND DISCUSSION Consumers Purchase Decision Process on Buying Organic Vegetables There are five steps on consumers purchase decission process: need recognition, information search, alternative evaluation, purchase decision, and post-purchase behaviour Kotler, 2005. 1. Need Recognition The need recognition is the first step in the purchasing process. If there is no need, there is no purchase. This recognition happens when there is a lag between the consumer’s actual situation and the ideal and desired one. Table 1. Consumer motivation in consumption of organic vegetables Motivation Amount Percentage Worry about pesticide in non- organic vegetable 26 59 Better nutrient than non-organic vegetable 27 61 Want to try consuming organic vegetable 1 2 Family habit 4 9 Better taste 4 9 Others 2 5 Percentage towards the number of respondents n=44 Mostly of the consumers being motivated to consume organic vegetables because of the better nutrient in organic vegetable compared to non-organic. The second motivation is because of people are worry about the bad impact from pesticide. It shows that organic vegetables consumer are believe that organic vegetables has a different nutrient from non-organic vegetables, they also trust the organic vegetables producers applying good organic vegetable farming during the cultivation. The data shows that organic vegetables consumer are having a strong motivation in consuming organic vegetables. 2. Information Search Once the need is identified, it’s time for the consumer to seek information about possible solutions to the problem. They will search more or less information depending on the complexity of the choices to be made but also his level of involvement. There are two main source of information: internal and external. Internal information: this information is already present in the consumer’s memory. It comes from previous experiences they had with a product or brand and the opinion they may have of the brand. External information: This is information on a product or brand received from and obtained by friends or family, by reviews from other consumers or from the press. Not to mention, of Development for Human Welfare 2016 301 course, official business sources such as an advertising or a seller’s speech. Table 2. Consumer sources of information about organic vegetables Source of information Amount Percentage Newspaper, magazine 18 41 Family 14 32 Supermarket 12 27 Friends 9 20 Internet 7 16 Television 7 16 Experience of consumption 3 7 Radio 1 2 others 4 9 Percentage towards the number of respondents n=44 Here is the sequence of information sources about organic vegetables accessed by consumers: newspapermagazine, family, supermarket, friends, internet, television, experience of consumption, and radio. Mostly of the consumers read magazine and newspaper so they know about organic vegetables. That because newspapers and magazines are often included some articles about organic vegetable on it. This is a kind of opportunity for organic producer to promote their products on newspaper and magazines. 3. Alternative Evaluation Once the information collected, the consumer will be able to evaluate the different alternatives that offer to them. They will evaluate the most suitable thing to their needs and choose the one which is best for them. Table 3. Consumers main consideration in buying organic vegetables Main consideration in buying organic vegetable Amount Percentage Price of the product 1 2 Freshness of the product 30 68 Packaging of the product 1 2 Organic label 6 14 Product variant 2 5 Brand Others 4 9 Total 44 100 Mostly of the consumers considered that freshness is the most important thing from organic vegetables. So, when consumers are buying organic vegetables, the first thing that being considered is about its freshness. This fact become a challenge for supermarket to kept the vegetables fresh during the display at the supermarket. Organic label also got a high attention from consumers, because it is the identity of organic vegetables at supermarket which makes them certain to buy the vegetables. 4. Purchase Decision Consumer buying decision process and their decision process may also depend or be affected by such things as the quality of their shopping experience or of the store, the availability of a promotion, and conditions for the sale. Table 4. Consumers decision on purchasing organic vegetables Buying decision Amount Percentage Routine activity 24 55 Depends on the situation 17 39 Spontaneusly 3 7 Total 44 100 Mostly of the consumers decided to buy organic vegetables because they have been routinely consuming organic vegetables. Consumers have a habbit to consuming organic vegetable so they go to supermarket in purpose of buying organic vegetables. Some other Nisa Murty Andari, Widodo, Sriyadi 302 costumers decided to buy organic vegetables in some situation, means that they buy organic vegetables when they want and do not buy when they dont want. This buying decision is depends on the availibility of organic vegetables at the supermarket. 5. Post-purchase Behaviour Once the product is purchased and used, the consumer will evaluate its utility with his original needs. If the consumer feel satisfied, she will continue purchasing and using the product. Table 5. Consumers reason to continue buy organic vegetables Reason Amount Percentage Good benefit to body 27 61 Habit of consumption 14 32 Others 3 7 Total 44 100 In this research known that mostly of the respondent are satisfied by the effect of consumption organic vegetables. Sixty-one percent of respondent declaire the reason of why they continued consuming organic vegetables because they are feel a good benefit to their health after consuming organic vegetables. This is means that they are totally aware about the benefit of consumption organic vegetables in their body. Thirty-two percent of the respondent decide to continued consuming organic vegetables because of consumption and seven percent of the respondent decide to continue consuming organic vegetables because other reasons like safe for children, feel happier if they consuming organic vegetables, and realize that they need organic vegetables. This result lead us to a fact that organic vegetables can help us to get healthy and also bring good benefits to our body. Consumer Preference Towards Organic Vegetables Information in this research is analyzed with ideal point attitude model. According to Farlex Financial Dictionary, the ideal point attitude model theory is about consumer buys a product based on how closely it fits with the consumers attitude of how the product should be. For example, given two brands of peanut butter with similar labels, prices and so forth, a consumer will buy the brand that conforms or is thought to conform most to what the consumer thinks peanut butter should taste like. According to the ideal point attitude model, a consumer buys a product based on how closely it fits with the consumers attitude of how the product should be. Confirmed to Sumarwan 2011, in ideal point attitude model consumers have an important value for each attirubute which influence their way to choose a product. 1. Level of Importance Rank of importance shows the level of importance for each organic vegetable’s attribute. The most importance attribute then become the main consideration to buy a product. Table 6 . Organic vegetable attributes’s level of importance Attribute Range of Score Level of Importance Wi Price 1 - 5 3,318 Packaging 1 - 5 3,568 Brand 1 - 5 2,795 Freshness 1 - 5 4,5 Variant of vegetables 1 - 5 4,25 Organic label 1 - 5 4,091 Based on the data analysis, known that rank of attributes level of importance in organic vegetables are freshness, variant of vegetables, organic label, packaging, price, and brand. Freshness is the most important attribute for consumer of organic vegetables. It means that consumer take a high attention on the product’s freshness. Freshness associated with the taste of vegetable, the fresher vegetable means that the nicer taste of the vegetables. The second attribute which got high attention from consumer is variant of vegetables. Variant of organic vegetables is very important especially for loyal consumer of organic Development for Human Welfare 2016 303 vegetable, many variants of vegetables avoid the consumers from boredom of organic vegetable product. The third attribute is organic label, organic label become very important since it distinguising organic vegetables from non-organic vegetables. The next attribute is packaging. Packaging of organic vegetable has a main purpose to protect the vegetables since vegetable is a perishable product. Price become not really important for organic vegetable consumer because they realize that organic farming needs extras caring compares to non-organic vegetable. Brand is the most unimportant attribute for consumer. They focussed more on vegetable’s freshness, variant, and organic label. 2. Ideal Value and Performance Ideal values show the information about how the product should be and performance shows the consumer’s real evaluation to the product. Table 7. Consumers ideal value and evaluation on TOM and TOS organic vegetable attributes Attribute Ideal value Ii Performance Xi TOM TOS Price 3,023 3,409 3,364 Packaging 3,273 3,409 3,091 Brand 3,136 3,477 3,068 Freshness 4,205 3,682 3,636 Variant of vegetables 3,818 3,727 3,023 Organic label 3,977 3,864 3,386 Total 21,568 19,568 The data on the Table 7 shows that average of ideal value in organic vegetables attributes is in medium scale, with number of scale 3. By the information can be concluded that consumers of organic vegetables do not put a high standard to organic vegetables performance. Brand TOM gained higher score than brand TOS in all attributes. Attribute in brand Tom which gain higher score is organic label with number of score is 3,864. Th e high score for TOM’s organic label is because it contain “Organic Indonesia” logo on its packaging. Because of that logo, people trust brand TOM better than TOS brand. Different from brand TOM, TOS gained highest score on its freshness attribute. Some of the respondent said that they like the freshness of TOM better that TOM’s freshness, but because of the limited variant and amount of TOS organic vegetables, so they decided to buy TOM. 3. Consumer’s attitudes toward brand TOM and brand TOS Table 8. Consumers attitude toward organic vegetables from brand TOM and TOS Attribute Attitudes Ab TOM TOS Price -0,955 -0,841 Packaging -0,432 0,682 Brand -0,886 0,136 Freshness 2,523 2,750 Variant of vegetables 0,477 3,227 Organic label 0,386 2,500 Total score = ∑ Wi [ Ii – Xi] 1,114 8,455 Attitude score for each attribute is calculated from the difference between ideal value and performance then multiplied by level of importance. So, the smaller score means the better consumer’s attitude toward a brand. Based on the all attributes evaluation, TOM gained higher total score than TOS. Consumer prefer to choose TOM brand because its mostly attributes are better than TOS’ attributes. 4. Attitude Differentiation Test Paired T test is used for identify consumer’s differentiation attitude to every attributes on brand TOM and TOS. Nisa Murty Andari, Widodo, Sriyadi 304 Table 9 . Test results of consumer’s differentiation attitude Attribute t Sig. Price - 0,647 0,521 Packaging - 3,586 0,001 Brand - 2,617 0,012 Freshness - 0,707 0,484 Variant of vegetables - 4, 648 0,000 Organic label - 4, 186 0,000 Average - 5, 258 0,000 The result shows that consumers have a different attitude towards variant of vegetables attribute, organic label attribute, brand attribute, and packaging. Whereas the attitude on price attribute and freshness attribute are about the same. Overall, there is a different attitude towards brand TOM and brand TOS for consumer. Different attitude on variant of organic vegetables attribute is related to the availability of the vegetables at supermarket. Different attitude on organic label is because TOM designed its packaging with “Organic Indonesia” label while TOS does not. The different attitude on packaging is because TOM has more attractive design on its packaging compared to TOS. People are more familiar to brand TOM because it always displayed all week long at supermarket while TOS only displayed on several days. The attitude towards price and freshness attributes is about the same because supermarket give the same price for the two brands and always taking care of expired date on the vegetables . CONCLUSION From the analysis and discussion can be concluded that consumer have a high motivation in consuming organic vegetables, one of the biggest motivation is because they need better nutrient from organic vegetables. Mostly of the consumer know about organic vegetable from newspaper and magazine. Freshness has the highest consideration on consumer buying decission. Consumer buy organic vegetable because a routine habbit to consume organic vegetables. The reason why consumer continue consume organic vegetable is because they feel better effect on their body after consuming organic vegetables. Freshness is the most important attribute on organic vegetable. Consumer applying a “medium” standard on organic vegetables performance, they dont have a high or extreme standard on organic vegetable. Consumer prefer brand TOM better than brand TOS. The score shows that brand TOM got a higher score than brand TOS in all attributes. In this research found that there is a different attitude on the performance of organic vegetable from brand TOM and TOS. REFERENCES Bonti-Ankomah, Samuel, and Emmanuel K. Yiridoe. Organic and conventional food: a literature review of the economics of consumer perceptions and preferences. Organic Agriculture Centre of Canada 59 2006: 1-40. Ideal Point Model. n.d. Farlex Financial Dictionary. 2009. Retrieved May 2 2016 from http:financial- dictionary.thefreedictionary.comIde al+Point+Model Kotler, P. 2005. Manajemen Pemasaran. Edisi Milenium . Jakarta: PT Prenhallindo. Pangan, Buletin Konsumsi. Pusat Data dan Sistem Informasi Pertanian. 2014 Sumarwan, U. 2011. Perilaku Konsumen. Teori dan Penerapannya dalam Pemasaran. Bogor: Ghalia Indonesia. Development for Human Welfare 2016 305 DISCUSSION FROM PARALLEL SESSION PAPER TITTLE Consumer Preference Towards Organic Vegetables at Super Indo Sultan Agung Yogyakarta AUTHOR Nisa Murti Andari, Widodo, Sriyadi DISCUSSION QUESTION 1. What is the different between TOM and TOS? 2. Tell us more about Ideal Point Model? ANSWER 1. TOM and TOS is a brand. TOM was supplied every day and TOS was supplied every week. 2. Can only evaluate the product from brands. SUGGESTION 1. Give questions of questioners 2. Not consumer but costumer 3. Check variable 4. Use validity and reliability or variable 306 STRENGTHENING THE ECONOMIC OF FOREST FRINGES COMMUNITY THROUGH MODEL FOR ENHANCING LOCAL CATTLE COMPETITIVENESS Teguh Hari Santosa 1 , Toni Herlambang 2 , Nurul Qomariah 2 , dan Oktarina 1 1 Faculty of Agriculture 2 Faculty of Economics Jember Muhammadiyah University Jl. Karimata No. 49 Jember corresponding author: teguh_hs66yahoo.com ABSTRACT Local cattle competitiveness of forest fringe community was generally low, so that caused weaknesses of community economic. Effort for enhancing local cattle competitiveness will strengthen community economic through improving husbandry technology, structure of market and industry and condition of local cattle demand. Long purpose of this research was creating strong economics for fringes forest community. Special purpose in second year was implementing model for enhanching local cattle competitiveness at some district at East Java such as Sumenep, Tuban, Bojonegoro, Malang and Blitar. Methode which were used were PRA, FGD, RRA, indept interview and survey. Achievement of model was measured by comparative and competitive advantage analysis DRCR and PCR. There were 4,729,298 cattles at East Java in 2015, 27 of them were local cattle Madura, Ongole, PO, Brahman, Bali. The biggest cattle producer at East Java were District of Sumenep, Tuban, Malang, Bojonegoro and Blitar. Comparative and competitive advantage of imported cattle was high which were showed by DRCR 0.4396 and PCR 0.4262. Whereas competitive advantage of local cattle was high, showed by PCR 0.3677, but comparative advantage was moderate, showed by DRCR 0.5134. Average profit by raising 2 – 3 imported cattles was Rp 1,490,140cattlemonth, while local cattle was Rp 1,454,000cattlemoth. Imported cattle husbandry contribution on family income was 37.48 , while local cattle was 33.91 . Actually, local cattle husbandry relaStively need fewer capital, price of beef was more expensive and more popular to consumer because of less fat content. Six infrastucture of agribussiness which were needed for enhanching local cattle competitiveness were human resources, technology, capital, raw material, machines and market. Keywords: local cattle competitiveness, comparative advantage, competitive advantage INTRODUCTION Local cattle as one of national commodity have potency of competi- tiveness, could be improved through profitability and its market. Causal factors of competitiveness consist of technology, productivity, input and cost, industry structure and demand condition Rahman etc., 2007. Enhancing local cattle competitiveness would strenghtening community economic at a national case through improving husbandry technology include increasing of produktivity, quality, input and cost, management of market and industry structure and local cattle demand condition. Main central of cattle production including local cattle at Java contribute 45 to national beef production increased for chasing Indonesian consumption need of beef about 4.5 kgcapitayear Safitri, 2012. Based on that fact, the chosen focus in this research was on main strategy frame of MP3EI, that was strenghtening local cattle competitiveness of fringes forest community by involving some relevant institutions university, research institute, Perhutani, husbandry department of husbandry, forestry, industry and trade, NGO etc. It’s related to social forestry, that had been became national commitment and Indonesian government political will July 2nd 2003 and UU No. 41, 1999 about forestry, that forestry development should be directed to potency of forest resourches, based on community empowerment, give priority Abdul Azis and Damasus Riyanto 307 Mersyah, 2005. Potency of local cattle production and its competitiveness still could be. Previous research by Herlambang etc. 2007-2008 and Herlambang etc. 2011-2012 showed that quality and productivity of local cattle was generally low, the causes were : a local cattle was just side bussiness, so good husbandry technology was ignore; b feed technology was low; c market structure and commercial regulation of local cattle were weak; d quality controll from every phase of production until processing were weak. Those caused economic of local cattle rancher at forest fringe was weak too and threathed the effort of forest conservation, because pushed their desire to exploit forest. Long general purpose of this research was creating strong economic of forest fringe community, all at once keeping sustainable forest rehabilitation. Special purpose in 1st year was formulated model of enhancing local cattle competitiveness as an effort for strengthening economic of forest finger community had achieved. Special purpode in 2nd year was: implementing reliability of model and improving it at wider area at East Java District of Sumenep, Tuban, Bojonegoro, Malang and Blitar. METHOD This research used participative approach. At the first year had done, participative approach qualitive was grounded for geting good understanding to know interesting case as a support for making research outcome that was model of enhancing local cattle competitiveness for strengthening economic of forest finger community. At second year we used consciousness raising, improving knowledge and skills from community development approach through social learning to deliver information, training and advocation. This research was applied research, so from first until third year used PRA to competitive local product and pay attention to excellent competitiveness technology. Together responden and be a part of them. According to the purpose which had orientation on attitude pattern changing of community, it must be need time. Planed stages of process had done from consciousness raising, information delivering of education subject, training and coaching until monitoring and evaluation. Research about this subject was planned for 3 years. First year had done in 2014, second year fron Januay 1st until Desember 15 th 2015. Location of research in first year was determined purposive at District of Sumenep, in second year at some districts at east Java such as : Sumenep, Tuban, Bojonegoro, Malang, Blitar BPTP Jawa Timur, 2011, and in third year was planned at some provinces of Indonesia such as : Central Java, West Java, West Sumatra, Nanggroe Aceh Darussalam, and South Sulawesi Priyanto, 2011. This research used stratified random sampling, because forest fringes community consist of heterogen group. Stage of responden choosing was: 1 stratificationing population, that was clasificationing population to homogen group based on their job and economic activity; 2 from every stratification was choosen 70 respondens and because there were four sub district, so we had 280 resondens. There were two kind of data, primary and secondary data. Primary data was got from interview and observation on the field, and secondary data was got form related institution. Methode which was used were Participatory Rural Appraisal PRA Focus Group Discussion FGD, Rapid Rural Apprasial RRA, Indept Interview and Survey. Data was analized by quantitative and qualitative analysis. Quantitative analysis related to local cattle competitiveness using DRCR Domestic Resources Cost Ratio and 308 Participatory Rural Appraisal methode with “ equal personationing and together doing” principles between researcher and responden, in accordance with living : 1. DRCR and PCR 0,25 competitiveness was very high and very efficient.

2. DRCR and PCR 0,25