East Java is the largest producer of tobacco in Indonesia by Madura Island as the main area. In the recent time, Madura tobacco demand has increases because of its specific quality and the strong trend low-nicotine of lighter cigarettes consume. The objectives of this study were to assess the supply chain circumstances and implementation of the intensification programs on the native Madura tobacco agribusiness. The case study locations were selected based on criteria of central production sites, agro-ecological setting and Tobacco Intensification Program sites during 2009. Primary data collection was conducted by doing surveys directly to the growers and the tobacco entrepreneurs while secondary data was collected from plantation office and other related agencies in Sumenep and Pamekasan. The study has shown that Madura tobacco is a local specific product, which has premier quality and should be maintained in order to provide optimal benefits for farmers and local economy. Therefore, Madura tobacco supply chain approach should be considered the equilibrium of market demand, quality required and quota policy that agreed by local governments, farmers representatives and cigarette companies. It is needed to improve the relationships between market players within the supply chain and develop the professionalism of farmers' management through the Intensification program, to maintain the sustainability of the tobacco agribusiness. The program proved has been successful to increase the productivity and income of tobacco farmers in the studied areas.
Kuntoro Boga Andri, Pudji Santosa and Zainal Arifin, 2011. An Empirical Study of Supply Chain and Intensification Program on Madura Tobacco Industry in East Java. International Journal of Agricultural Research, 6: 58-66.