Competitiveness of Banana Chipping Agroindustry in Lumajang Regency, Indonesia

Yuniarti Yuniarti, Pudji Santoso, Paulina Evy R. Prahardini


The aim of this research is to identify the competitiveness of the banana chipping industry in Lumajang Regency, Indonesia. Research was undertaken in the center of production and processing in Lumajang Regency from September to December 2007. Primary data was collected by interviewing banana chip processors and collector agents. Secondary data was obtained from the Office of Dinas Pertanian and Dinas Koperasi and Usaha Kecil Menengah in Lumajang Regency. The collected data was then tabulated and analyzed descriptively. The results show that the banana chipping industry in Lumajang Regency is primarily a small-scale or home industry. However, the industry does provide numerous households with a significant amount of income and provides employment for many women. At the village level, the banana chip industry directly supports the marketing of fresh bananas. Factors that support the banana chipping industry include (1) a sufficient and continuous supply of raw material, (2) emerging opportunities in the banana chip market, (3) a cheap and simple processing technology, (4) the relatively small investment required, and (5) the support of local government. To improve competitiveness and to accommodate consumers’ changing tastes, quality and the processing technology must be improved and the market expanded through promotion.

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