Rapid population growth has increased demand for food and put pressure on natural and agriculture resources, causing a decline in ecological quality and environmental degradation. This situation requires that the agricultural sector switch to more sustainable agriculture systems and pay more attention to farmers’ welfare. One step towards sustainable agriculture is to promote organic Agricultural cultivation. Switching to organic cultivation not only has positive impacts on the ecosystem, but also increases the potential to improve the welfare of farmers through higher production values.
The purpose of this case study is to describe the success story of a rice farmer group in Boyolali called Aliansi Petani Padi Boyolali (APPOLI) , which is gradually managing to switch to organic rice cultivation and make use of opportunities to supply global market demand. The findings of the study indicate that in the conventional rice market chain in Boyolali the largest margins are enjoyed by Wholesale purchasers. The reason for their high margin is that the valueadded processes, from harvesting through post-harvest processing and milling, are all owned by the wholesale purchasers. Also, these wholesale purchasers generally include a risk factor when setting the price that they will pay for the paddy standing in the field, which means that they typically pay lower prices.
APPOLI’s success in developing an organic rice cultivation system in Boyolali is due to its ability to perform the two main functions of a farmer organisation: guidance and supervision through the ICS program, which resulted in getting organic certification from the Institute of Marketecology (IMO) ; and organic rice product marketing, which resulted in the export of rice products to the global market. APPOLI produces two rice products: healthy rice, which is produced using cultivation
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