Strategy and Innovation of Mushroom Business in Rural Area Indonesia: Case Study of a Developed Mushroom Enterprise from Cianjur district, West Java, Indonesia

Abstract

Mushroom farming has become attractive business in agricultural sector due to its simplicity and flexibility of cultivation and quite profitable. Health awareness of Indonesian people about mushroom gives a positive impact to mushroom business. Behind the good aspects, several evidence argued that production performance of mushroom business is not optimal related to less capacity and deficiently appropriate knowledge. This paper aims to learn the unique strategy and innovation from local mushroom enterprise which is very famous in Cianjur distric, West Java, Indonesia in order to improve the business performance. Using technological (innovation) approach and qualitative method, this study concluded that there are two types of strategies, one relating to the technological part, and the other relating to the organization part. The technological focuses on attracting market and enhancing the yield productivity. The organization part focuses on developing capacity to fulfill the demand by making a contract agreement resembling contract farming with local society. For local society, the contract agreement has benefit to minimize both market failure and production problems under supervison support and without monopoly action. The strategies were capable of being successful innovation by interacting and cooperating with external sources, and performing certain adjustment with local condition.

Strategy of Oyster Mushroom Cultivation in Mushroom House at Urban Village of Siumbut Baru, Sub-District of East Kisaran, District of Asahan

“…All of activities employees depend on the training, because training is an activity to improve the ability, form skills and improve the performance of individuals or groups in performing their duties by improving skills, knowledge, skills, attitudes and behaviors that are specific to the needs or job [24]. The strategies were capable of being successful innovation by interacting and cooperating with external sources, and performing certain adjustment with local condition [1].…”

Priority Factors in The Development of Sustainable Oyster Mushroom Agribusiness

“…The implementation of oyster mushroom agribusiness in Indonesia requires strengthening the adoption of cultivation technology and post-harvest processing, institution strengthening, management optimization, and the use of production factors (Mabuza et al 2012;Iriantinah, 2014;Li and Hu, 2014;Febrianda and Tokuda, 2017). Farmers' willingness to starting oyster mushroom agribusiness is influenced by marital status, formal education, farmer group membership, mushroom consumption level, market availability, farming experience, and land area (Ongoche et al 2017).…”

“…Some researches related to the development strategy for oyster mushroom agribusiness have been carried out by researchers (Iriantinah, 2014;Li and Hu, 2014;Dimyati and Astarina, 2016;Fatria, 2017;Febrianda and Tokuda, 2017;Ongoche et al 2017). The purpose of this research is to determine priority factors in the development of sustainable oyster mushroom agribusiness with OPEFB as the growing media.…”

Learning the Adoption of Mushroom Farming Partnership: A Case Study of Farmers and an Enterprise from Cianjur Distric, West Java, Indonesia

“…A previous study identified specifically such aspects as the inadequate support for production and the deficient market support as the obstacles on the dissemination and adoption effort of mushroom farming (Pradhan & Nayak, 2014). We found and suggested that a partnership between enterprise and rural society is an alternative strategy to overcome those obstacles as enterprise has both the technical capabilities and market access (Febrianda & Tokuda, 2017). Partnership can assist farmers in applying good agricultural standards and production as well as reduce the constraints in accessing the markets (Bitzer et al, 2013;Dentoni et al, 2016;Royer et al, 2017).…”

“…For example, we have shown the local champion of mushroom enterprise from Cianjur district which has successfully introduced innovations. This enterprise not only improves the reliability of its artificial medium technology but also implements a partnership to expand its business and to empower the local society (Febrianda & Tokuda, 2017). West Java province occupied the first rank of mushroom production with a total production of 25,194,471 kg or about 67% of national mushroom production in 2014 (Badan Pusat Statistik Kabupaten Cianjur, 2015).…”