Navigation of Agribusiness Cooperatives in East Java Facing the Covid-19 Pandemic: Synergies or Competitions?

Abstract

The Covid-19 pandemic has caused an economic crisis that has spread across all sectors. The one of food crisis does not originate from a supply crisis but from a purchasing power crisis and distribution barriers. Agribusiness cooperatives take an important role to support farmers in managing finances and food stocks. This study aims to analyze the performance of agribusiness cooperatives in East Java Province to maintain their identity and developing business strategies in the Covid-19 pandemic. The sample in this study were three agribusiness cooperatives in Nganjuk Regency. Methodologically, the analysis is carried out by assessing the identity of the cooperative using the Development Ladder Assessment method and assessing the corporate business strategy. Both measurements were carried out to obtain an overview of the strategic policy choices of agribusiness cooperatives in facing the crisis. Some identity issues include membership management and member participation which has decreased during the pandemic due to limited social interaction. During the pandemic, agribusiness cooperatives also strengthened business strategies with implement a human resource strategy by restructuring human resources and rearranging wage and incentive policies. The financial strategy is also carried out by tightening credit terms and increasing capital from external sources.