Analysis of Pure Coconut Oil Businesses on Community Welfare in The Village of Gunung Tua Baru, North Padang Lawas District
Keywords:
Production, Labour, Capital, and Technology and Public Welfare.Abstract
Indonesia has great potential in the coconut industry to improve regional and national economies through coconut production and its derivative products, although coconut production by small farmers is still low. With an annual production of 18.30 million tons and a market share of 30.24% of world coconut production, Indonesia is one of the largest coconut producers in the world. Coconut production is concentrated in large islands such as Sumatra, Java, and Sulawesi, with an average productivity of 11.36 tons per hectare in 2014. Virgin Coconut Oil (VCO), which has been proven to be beneficial for health, is increasingly in demand along with the trend of natural and pure health foods. However, in Gunung Tua Baru Village, Padang Bolak District, this great potential has not been fully utilized due to various obstacles such as technology, capital, and uneven market absorption. This study aims to determine which factors (price, production, distribution, labor, technology, capital, skills, potential) are relevant in improving the welfare of the community in Gunung Tua Baru Village, North Padang Lawas Regency. With a sample size of 134 respondents collected by distributing questionnaires and data processing using Confirmatory Factor Analysis (CFA) and Multiple Linear Regression. Confirmatory Factor Analysis (CFA) analysis shows that of the eight factors analyzed, there are four factors that have a significant effect on the welfare of the community in Gunung Tua Baru Village, namely production, labor, capital, and technology. The results of multiple linear regression show that these four factors have a significant effect on improving community welfare. Simultaneous hypothesis testing shows that production, labor, capital, and technology positively and significantly affect the welfare of the community in Gunung Tua Baru Village. Thus, increasing production, labor, capital, and technology is very much needed to optimize the potential of coconuts and improve the welfare of the community in this village.
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