Institutional Risk Factors and the Role of Coconut Farmers in Supporting the Downstream of Coconut Commodities (Cocos nucifera) in West Sulawesi

Abstract

Coconut downstreaming is an important strategy to increase added value and the welfare of farmers in major coconut-producing areas, including West Sulawesi. However, the implementation of downstreaming still faces various risks, particularly those arising from institutional aspects and the low role of farmers in the coconut value chain. This study aims to analyze institutional risk factors and the role of coconut farmers in supporting the development of coconut downstreaming (Cocos nucifera) in West Sulawesi. The study uses a quantitative approach with a survey method targeting coconut farmers who are members of agricultural institutions. Primary data were collected through structured questionnaires, while secondary data were obtained from relevant agencies. Data analysis was conducted using descriptive statistics, trend analysis, coefficient of variation (CV), and structural equation modeling (SEM) to examine the relationships between variables. Research results indicate that institutional risks, such as weak governance, limited access to financing, low organizational capacity, and suboptimal market partnerships, have a significant impact on the level of farmer involvement in downstream activities. On the other hand, the active role of farmers in decision-making, innovation adoption, and institutional participation positively affects the sustainability of coconut downstream activities