Determinants of Value Added in Copra Production in Central Buton District of Southeast Sulawesi

Abstract

Coconut palm has significant position in the life of Indonesian people as it provides various products and by-products useful in their daily life. The main product is derived from coconut meat which can be produced into copra. The study aimed to assess value addition in copra production and to determine the factors that affect value addition in copra production. This research was carried out in Mawasangka Subdistrict, Central Buton District, Southeast Sulawesi Province. The population in this study was 51 copra producers. Respondents were determined using the census method through which the entire population was selected as respondents. Hayami method of production structure was used to calculate value addition, whereas multiple linear regression was employed to determine the factors affecting value addition. Study results showed that the average value added of copra production was IDR749.38/kg of raw materials. The regression results revealed that all independent variables, namely, the number of coconuts, labor wages, copra prices, coconut prices, and other inputs, jointly had a significant effect on the value added. Partially, the copra price, coconut price, and other input contribution had a significant effect on the value added, while other variables did not.