DETERMINANT FACTORS OF FARMERS' DECISIONS IN PURCHASING LIQUID ORGANIC BIOFERTILLIZER PT GREAT GIANT FOODS LAMPUNG DETERMINANT FACTORS OF FARMERS' DECISIONS IN PURCHASING LIQUID ORGANIC BIOFERTILLIZER PT GREAT GIANT FOODS LAMPUNG

Abstract

In Indonesia, organic fertilizer was known before the green revolution era. However, the green revolution led farmers to choose inorganic fertilizer because it was cheaper and more practical. Increased use of inorganic fertilizers has resulted in reduced agricultural productivity and land degradation, thereby reinvigorating interest in organic farming. In fact, agricultural land in South Lampung Regency in 2013 experienced an increase of 6.91% in the last 10 years. PT Great Giant Foods (PT GGF) as the largest pineapple industry in Indonesia, processes its production waste into Liquid Organic Biofertillizer (LOB) organic fertilizer. The objectives of this research are (1) to determine farmers' behavior in making decisions to purchase LOB organic fertilizer; and (2) to determine the external and internal factors that influence farmers' purchasing decisions for LOB organic fertilizer in South Lampung Regency. The method used in this research is descriptive analysis to answer the first problem and multiple linear regression analysis for the second problem, which is then implemented in the form of descriptive analysis. The results of this research show that: (1) farmers use organic fertilizer to improve production quality. Their main source of information is fellow farmer friends or neighbors. Other organic fertilizer options used are guano fertilizer and manure. The decision to use LOB is influenced by fellow farmers and heads of farmer groups with purchasing locations from agents. Farmers' responses to LOB were positive, especially in protecting plants from pests and increasing plant growth; (2) LOB purchasing decisions are influenced by external factors such as culture, reference group, and family, as well as internal factors including motivation, the role of age, and the role of education.