Research on World Agricultural Economy

Market Dynamics and Consumer Preferences for Organic Rice Purchase in Central Java and Yogyakarta, Indonesia

Zuhud Rozaki

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Yogyakarta 55183, Indonesia

Salsabilla Alifah

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Yogyakarta 55183, Indonesia

Nur Rahmawati

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Yogyakarta 55183, Indonesia

Triyono

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Yogyakarta 55183, Indonesia

Salsabila Salma Al Hadi

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Yogyakarta 55183, Indonesia

Riska Aula Ardila

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Yogyakarta 55183, Indonesia

Himawan Wahyu Pamungkas

Department of Agriculture and Plantation, Central Java Province, Semarang 50517, Indonesia

Yusuf Enril Fathurrohman

Department of Agribusiness, Universitas Muhammadiyah Purwokerto, Purwokerto 53182, Indonesia; Doctoral School of Management and Business, Faculty of Economics and Business, University of Debrecen, Debrecen 4032, Hungary

DOI: https://doi.org/10.36956/rwae.v6i1.1398

Received: 17 October 2024 | Revised: 4 November 2024 | Accepted: 5 November 2024 | Published Online: 20 January 2025

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Abstract

The production and consumption of organic rice in Indonesia continue to increase along with the growing public awareness of the importance of healthy eating habits and environmental conservation efforts. Consumers in Central Java and Yogyakarta increasingly favor organic rice, prioritizing health and product quality. This has led to increased demand and can also motivate farmers to increase organic rice production to meet the ever-growing market needs. This study analyzes the market dynamics and consumer preferences for organic rice in Central Java and Yogyakarta. The research employed a quantitative descriptive approach, utilizing the 4P marketing mix (product, price, place, promotion) and a Likert scale to measure consumer preferences. Sampling was conducted through proportional stratified random sampling from five regencies, with 310 respondents. The results show that promotion is the most significant factor influencing consumer purchasing decisions, with a relative importance of 30.289%. The primary factors driving consumer preferences for organic rice are health benefits and product quality. Although organic rice is priced higher than conventional rice, consumers tend to choose it due to its health and sustainability benefits. However, uneven distribution of organic rice and price fluctuations caused by high production costs and climate factors pose major challenges. The study suggests more intensive promotional strategies, improved market accessibility, and subsidy policies to support farmers’ production costs. By understanding market dynamics and consumer preferences, this research provides critical insights for stakeholders to design more effective policies and marketing strategies while supporting sustainable agriculture in Indonesia. 

Keywords: Organic Rice; Consumer Preferences; Market Dynamics; Price Fluctuation; Price Setting

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