VILLAGE-AGROINDUSTRY CHARACTERISTICS OF BANANA CHIPS ('AGUNG SEMERU') IN LUMAJANG REGENCY, EAST JAVA

The aim of this research was to identify characteristics of village-agroindustry associated with the production of banana chips (‘Agung Semeru’) in Lumajang regency as a basis for a government decision to develop a banana agribusiness in that location. Research was done in the center of banana production and in the centre of the banana chip industry in Lumajang from September-December 2007. Primary data were collected by interviewing the banana chip processors and the collecting traders. Four persons from each of the key respondent groups were chosen by random sampling. Secondary data were obtained from the Office of Dinas Pertanian and Dinas Koperasi & Usaha Kecil Menengah in the Lumajang regency. The collected data were then tabulated and analyzed descriptively. The results showed, that the village banana chip agroindustry in the Lumajang regency was on a small scale or home industry level, but that these industries provided high incomes and employment for women workers. The banana chip agroindustry in Lumajang regency had potential to be developed. The development of the banana chips agroindustry played an important role in supporting the development of a banana agribusiness in Lumajang because of the relationship between the need for supply of fresh bananas for chips from farmers. A good market for banana chips would support the develop¬ment of the fresh banana agribusiness in the local area. Some factors that supported the banana chips agroindustry in Lumajang regency were 1) sufficient of raw materials and the continuity of supply, 2) the simple and inexpensive processing technology, 3) the relatively small investment need, and 4) the high support of the local government in developing a banana commodity program. To increase the competitive power of banana chips in the market and to satisfy customers tastes, quality improve¬ment and advances in processing technologies should be developed continuously. Expanding the market could be done through initiation of new markets and through promotion.