RISK AND MITIGATION OF RED CHILI PRODUCTION RISK CASE STUDY IN BESAKIH VILLAGE, KARANGASEM DISTRICT, BALI PROVINCE

This study aims to identify the source of risk, analyze the level of risk, and identify risk mitigation of red chili production. The research location was deliberately chosen, namely in Besakih Village, Rendang District, Karangasem Regency, Bali Province. Measurement of the level of production risk using the coefficient of variation; while the identification of sources of risk and risk mitigation is done in a qualitative descriptive manner. This research is in the form of exploratory research using survey methods and RRAS, where the main object is red chili farmers, using secondary data and primary data in the form of cross section data for three growing seasons. Respondents were taken intentionally, namely red chilli farmers who conduct farming of red chili for three growing seasons (February 2015 to July 2016). The informants consisted of Gapoktan management, PPL, and academics.

The results showed the sources of risk are the physical environment, operational environment, and competitors. Types of risks in the form of weather and climate conditions; attack of aphids and fruit flies; anthracnose and root rot diseases; weed; production process based on experience; price. The level of production risk is relatively high as indicated by the coefficient of variation of 4.03 with a standard deviation of 672,821.71 kg. Risk mitigation undertaken by farmers is diversification; set the pattern and time of planting; reduce planting area; make beds; cultivate better; destroying diseased plants which have not yet produced; spraying with pesticides for diseased plants that are already in production.

In this research it is suggested (1) farmers need to adjust the area of ​​their arable land so that it is within the optimal arable area; (2) further research needs to be done to determine the level of production risk and income in the red chili farming portfolio, because farmers generally diversify; (3) relevant agencies need to assist farmers in terms of: (a) production planning and planting patterns of red chili in a wider area; (b) helping to find the red chili market, including becoming a liaison between farmers and companies that use red chili raw materials to partner with red chili farmers

Keywords: mitigation, risk, production, red chili