The performance assessment of the agribusiness system and production subsystem in maize farming: An Empirical finding from Indonesia

Abstract

Abstract The objective of this research was to analyze the maize agribusiness system by employing the production subsystem performance approach. From January to March 2023, the research was conducted in the Gantarangkeke Subdistrict of the Bantaeng Regency in the province of South Sulawesi, Indonesia. The primary sources of data employed for this research were structured interviews conducted using a prepared questionnaire with 120 maize farmers, who were selected with simple random sampling. In-depth interviews were also conducted with field agricultural extension workers and the head of the agricultural extension center. The results shown that the maize agribusiness system involved upstream subsystems, farm production subsystems, downstream subsystems and agribusiness support services subsystems. The maize agribusiness subsystems each performed their functions and roles to facilitate the implementation of process performance in the maize agribusiness production system. The outcome performance, which was the achievement of the process performance of the production subsystem, shows that the net income of maize farming was IDR7,204,270/ha, gross margin was IDR7,456,270/ha, rate of return was 75.71%, capital turnover was 68.67, and profitability index was 0.43. These parameters and indicators indicate that the performance of the maize agribusiness production subsystem in the study area was financially profitable, making it worth developing in the future.

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