Cocoa Productivity as a Moderating Variable in the Relationship between Maintenance Costs and Farmer Welfare
JEL Classification: Q12, Q13, Q16, O13, D24
Abstract
This study aims to analyze the effect of maintenance costs on the welfare of cocoa farmers in Manyamba Village, Tammerodo Sendana District, and to examine the role of cocoa productivity as a moderating variable in this relationship. The research method used a quantitative approach with a population of 60 cocoa farmers who also served as the research sample. Data were collected through observation, interviews, documentation, and questionnaires, then analyzed using the Partial Least Squares (SmartPLS) technique. The results showed that maintenance costs had a positive and significant effect on farmer welfare. Cocoa productivity was also shown to have a significant positive effect on improving welfare. However, the results of the moderation effect test showed that productivity did not play a significant role in strengthening or weakening the relationship between maintenance costs and farmer welfare. These findings confirm that efforts to improve farmer welfare depend not only on managing maintenance costs and productivity, but also require support from other external factors such as access to financing, agricultural technology, and government policies.
References
Attipoe, S. G., & Adams, A. (2024). Influential factors shaping cocoa farmers' crop insurance participation and coverage amount in Ghana. Cogent Food & Agriculture, 10(1), 2417830. https://doi.org/10.1080/23311932.2024.2417830
Bakker, E., Hassink, J., & van Veluw, K. (2023). The ‘inner’dimension of Dutch farmers’ trajectories of change: Drivers, triggers and turning points for sustained agroecological practices. Agroecology and Sustainable Food Systems, 47(5), 687-717. https://doi.org/10.1080/21683565.2023.2180563
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Bigdeloo, M., Teymourian, T., Kowsari, E., Ramakrishna, S., & Ehsani, A. (2021). Sustainability and circular economy of food wastes: Waste reduction strategies, higher recycling methods, and improved valorization. Materials Circular Economy, 3(1), 3. https://doi.org/10.1007/s42824-021-00017-3
Boansi, D., Gyasi, M., Nuamah, S., Tham-Agyekum, E. K., Ankuyi, F., Frimpong, R., ... & Gyan, C. B. (2024). Impact of agricultural credit on productivity, cost and returns from cocoa production in Ghana. Cogent Economics & Finance, 12(1), 2402035. https://doi.org/10.1080/23322039.2024.2402035
BPS. (2023). Indonesian cocoa statistics 2023. Badan Pusat Statistik. https://www.bps.go.id
Bremaghani, A. (2024). Utilization of organic waste in compost fertilizer production: implications for sustainable agriculture and nutrient management. Law and Economics, 18(2), 86-98.
Brobst, G. (1989). Production function theory.
Bryceson, S. R., Morgan, J. W., McMahon, P. J., & Keane, P. J. (2023). A sudden and widespread change in symptoms and incidence of vascular streak dieback of cocoa (Theobroma cacao) linked to environmental change in Sulawesi, Indonesia. Agriculture, Ecosystems & Environment, 350, 108466. https://doi.org/10.1016/j.agee.2023.108466
Calcante, A., Fontanini, L., & Mazzetto, F. (2013). Repair and maintenance costs of 4WD tractors in Northern Italy. Transactions of the ASABE, 56(2), 355-362.
Effendy, Pratama, M. F., Rauf, R. A., Antara, M., Basir-Cyio, M., Mahfudz, & Muhardi. (2019). Factors influencing the efficiency of cocoa farms: A study to increase income in rural Indonesia. PLoS One, 14(4), e0214569. https://doi.org/10.1371/journal.pone.0214569
Ellacuriaga, M., García-Cascallana, J., & Gómez, X. (2021). Biogas production from organic wastes: Integrating concepts of circular economy. Fuels, 2(2), 144-167. https://doi.org/10.3390/fuels2020009
Giatman, M. (2011). Engineering economics (3rd ed.). PT Raja Grafindo Persada.
Gneiting, U., & Arhin, A. (2023). Towards a Living Income for Cocoa Farmers in Ghana: Assessing companies' efforts to date. http://dx.doi.org/10.21201/2023.621485
Guja, M. M., & Bedeke, S. B. (2025). Smallholders’ climate change adaptation strategies: exploring effectiveness and opportunities to be capitalized. Environment, Development and Sustainability, 27(8), 17927-17956. https://doi.org/10.1007/s10668-024-04750-y
Hayden, M. T., Mattimoe, R., & Jack, L. (2022). Sensemaking and financial management in the decision-making process of farmers. Journal of Accounting & Organizational Change, 18(4), 529-552. https://doi.org/10.1108/JAOC-11-2020-0186
Idowu, S. O., Schmidpeter, R., Capaldi, N., Zu, L., Del Baldo, M., & Abreu, R. (Eds.). (2023). Encyclopedia of sustainable management. Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-25984-5_301807
Jie, H., Khan, I., Alharthi, M., Zafar, M. W., & Saeed, A. (2023). Sustainable energy policy, socio-economic development, and ecological footprint: The economic significance of natural resources, population growth, and industrial development. Utilities Policy, 81, 101490. https://doi.org/10.1016/j.jup.2023.101490
Kongor, J. E., Owusu, M., & Oduro-Yeboah, C. (2024). Cocoa production in the 2020s: Challenges and solutions. CABI Agriculture and Bioscience, 5(1), 102. https://doi.org/10.1186/s43170-024-00310-6
Le Pera, A., Sellaro, M., Bencivenni, E., & D'Amico, F. (2022). Environmental sustainability of an integrate anaerobic digestion-composting treatment of food waste: Analysis of an Italian plant in the circular bioeconomy strategy. Waste Management, 139, 341-351. https://doi.org/10.1016/j.wasman.2021.12.042
Liu, F., & Madni, G. R. (2024). Moderating role of policy incentive and perceived cost in relationship of environmental awareness and green consumption behavior. Plos one, 19(2), e0296632.
Manea, E. E., Bumbac, C., Dinu, L. R., Bumbac, M., & Nicolescu, C. M. (2024). Composting as a sustainable solution for organic solid waste management: Current practices and potential improvements. Sustainability, 16(15), 6329. https://doi.org/10.3390/su16156329
Maridjo, H., & Ignasiak-Szulc, A. (2023). Affecting factors on farmer welfare in Indonesia. Journal of Economics and Development (Sebelas Maret University), 23(2).
Mas-Colell, A., Whinston, M. D., & Green, J. R. (1995). Microeconomic theory (Vol. 1). New York: Oxford university press.
Nnahiwe, P. (2023). Faculty of Tropical AgriSciences (Doctoral dissertation, Czech University of Life Sciences Prague).
Osei, N. N. (2024). The Impact of Microcredit on Household Expenditure and Business Performance in the Context of Ghana.
Prokopov, S. P., Myalo, O. V., Myalo, V. V., Maltseva, E. I., & Demchuk, E. V. (2023). Increasing productivity of machine-tractor units depending on the influence of the load of the machine operator with maintenance work in the agricultural enterprises of the Omsk region. In E3S Web of Conferences (Vol. 392, p. 01043). EDP Sciences. https://doi.org/10.1051/e3sconf/202339201043
Putri, M. A., Karimi, S., Ridwan, E., & Muharja, F. (2024). Unveiling the Welfare Puzzle: Exploring Fertilizer Subsidy Effects on Farmer's Earnings in Indonesia. Sriwijaya International Journal of Dynamic Economics and Business, 129-146. https://doi.org/10.29259/sijdeb.v8i2.129-146
Rashid, M. I., & Shahzad, K. (2021). Food waste recycling for compost production and its economic and environmental assessment as circular economy indicators of solid waste management. Journal of Cleaner Production, 317, 128467. https://doi.org/10.1016/j.jclepro.2021.128467
Rianse, U. (2006). Productivity, financial and economic analysis of cocoa farming in forest areas in Southeast Sulawesi. Gadjah Mada University.
Saqib, Z., & Sadef, Y. (2025). Sustainable waste management through commercial composting: Challenges, opportunities, and future directions for circular economy. European Journal of Sustainable Development Research, 9(4).
Seidu, A. (2024). Economic and Social Impact of Improved Cocoa Varieties Adoption in Ghana.
Sen, A. (1999). Development as freedom. Oxford University Press.
Shahab, Y., Ye, Z., Liu, J., & Nadeem, M. (2025). Social trust, environmental violations, and remedial actions in China. Journal of Business Ethics, 198(3), 637-654. https://doi.org/10.1007/s10551-024-05818-5
Simarmata, G., Suwilo, S., & Sitompul, O. S. (2024). Strategic plant maintenance planning in agriculture by integrating lean principles and optimization. International Journal of Electrical & Computer Engineering (2088-8708), 14(6). https://doi.org/10.11591/ijece.v14i6.pp6279-6286
Suryalena, S., Andri, S., Karneli, O., Andini, F. K., & Febrian, A. F. (2025). Community Social Capital and Farmer Development: Key Drivers of Welfare and Business Productivity in Farmer Groups. In E3S Web of Conferences (Vol. 611, p. 02001). EDP Sciences. https://doi.org/10.1051/e3sconf/202561102001
Tambadou, H. (2024). Using quantitative methods to understand how dairy farmer wellbeing connects to farm management, barn design, technology, and animal welfare.
Tangen, S. (2005). Demystifying productivity and performance. International Journal of Productivity and performance management, 54(1), 34-46. https://doi.org/10.1108/17410400510571437
Varian, H. R. (2014). Intermediate microeconomics with calculus: a modern approach. WW norton & company.
Waarts, Y. R., Janssen, V., Aryeetey, R., Onduru, D., Heriyanto, D., Aprillya, S. T., ... & Ingram, V. J. (2021). Multiple pathways towards achieving a living income for different types of smallholder tree-crop commodity farmers. Food Security, 13(6), 1467-1496.
Copyright (c) 2025 Journal La Bisecoman

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.



