Factors Controlling the Development of Fruit Processing Industries: A Case Study of East Java, Indonesia

Abstract

Fruit Processing Industries (FPIs) in East Java, are a key part of agroindustrial activities there. In terms of economic development, these strongly contribute to creating employment opportunities and higher income. In relation to agroindustry, three basic components in any agroindustrial system are procurement of raw material, processing and marketing. How to encourage fruit processing, as an agroindustrial activity and area potential, has become a vital issue and a major priority for area development in East Java. Understanding the problems in FPIs would give support to success cases. Based on a sample survey of five districts in East Java province (Banyuwangi, Jember, Lumajang, Probolinggo and Malang), this paper reviews controlling factors, based on three basic components of the agroindustrial system. The paper concludes that FPIs are technological problems showed a strong relationship with FPIs' overall performance. Achievement of technology tends to be a determinant factor in processing activities. Understanding these factors can aid policy makers of FPIs in designing and implementing appropriate programs.