Analyzing the determinant of the Profit of citronella oil in Blangjerango District, Gayo Lues Regency, Indonesia

Document Type : Research Paper

Authors

1 Agribusiness Study Program, Faculty of Agriculture, Universitas Sumatera Utara, Medan, Indonesia

2 Alumni of the Agribusiness Master's Study Program, Faculty of Agriculture, Universitas Sumatera Utara, Medan, Indonesia

3 Faculty of Economic and Business, Universitas Sumatera Utara, Medan, Indonesia

10.22124/cjes.2023.7200

Abstract

Developing citronella oil processing in rural areas is a strategic step in spurring regional economic growth and increasing farmers' income and employment opportunities. Fluctuations in input and output prices reduce the income of citronella oil farmers. This study analyzes the factors that influence the profit level of the citronella oil business in Blangjerango district of Gayo Lues Regency, Indonesia. The population in this study was 742 citronella farmers in this regency. Samples were taken using simple random sampling from 60 respondents. Data were analyzed using a multiple linear regression model with the Ordinary Least Square (OLS) method. The results showed that partially and simultaneously, the amount of production, labor costs, the price of citronella leaves, and the output price of citronella oil significantly affect citronella oil profit at the 95% confidence level.

Keywords

References

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Available Online from 22 October 2023

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