Opportunities and Challenges for Katokkon Chili (Capsicum chinense. Jacq) Agribusiness as a Highland Endemic Crop: Lessons Learned from Indonesia

Abstract

The development of agribusiness involving endemic plants offers both opportunities and challenges due to the fact that these plants are endemic to specific geographical areas. The Toraja highlands are home to the Katokkon chili, an endemic crop with a spicier taste and larger fruit size than regular chili. The community utilizes this unique crop as a source of income. The objective of this study is to identify the application of the Katokkon agribusiness subsystem and to examine the opportunities and challenges inherent to its cultivation. This research uses a mixed-methods approach with a sequential explanatory technique. Data collection was conducted in Rantetayo District, Tana Toraja Regency, involving a total of 58 samples with details of 42 samples of katokkon chili farmers, 6 intermediary traders, 3 wholesalers, and 7 retailers. This was conducted between February and May 2024. The analysis was conducted in three stages. Initially, the agribusiness subsystems were identified. Secondly, the income, marketing margins, and farmer share were analysed. Finally, opportunities and challenges in each katokkon agribusiness subsystem in Toraja were analysed. The findings revealed that, of the five identified subsystems (production input, on-farm, post-harvest processing, marketing, and support), post-harvest processing was not conducted. The average income for farmers is IDR 223,820,571.65 per hectare per month, with an R/C ratio of 9.56. In regard to the marketing of these products, there are three distinct marketing channels. The farmer’s share ranges from 50 to 90 percent. The institutions and services that support the operation of the katokkon chili agribusiness are government agencies and farmer groups. There are still opportunities for the development of katokkon, mainly because of its specific characteristics. The main challenge lies in the agribisuness subsystem, namely seeds and processing, and post-harvest subsystems. Overall, katokkon development opportunities can be optimized through government support and other supporting institutions.