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Qualitative analysis reveals BUMDes can create value for cocoa farmers, suggesting improved local agribusiness integration.
Cocoa is a strategic commodity that plays an important role in the rural economy however, its management at the village level is often not optimally integrated with local institutions. This study aims to analyze the strategy for optimizing cocoa cultivation management based on the Village-Owned Enterprise (BUMDes) Tunas Mandiri to improve the welfare of farmers in Nglanggeran Village, Gunungkidul Regency. The research approach used is qualitative with data collection methods including interviews, observations, and questionnaires distributed to 19 cocoa farmers from five hamlets. The analysis was conducted based on four institutional dimensions: social values, farming environment, social innovation, and economic activities. The results show that farmers have a positive perception of the potential role of BUMDes in managing cocoa enterprises, particularly in creating added value, strengthening solidarity, and developing community-based innovations. However, BUMDes Tunas Mandiri has not yet established a cocoa business unit due to the strong dominance of middlemen in the supply chain. The conclusion of this study emphasizes the importance of strengthening village institutions that are adaptive, collaborative, and innovative to support local agribusiness development. This research offers both theoretical and practical contributions to the development of institutional models for village-based economic development centered on leading local commodities.
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Sardani et al. (2025) studied this question.
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