Nutmeg and Farmers of Morella: Assessing Welfare Through the Lens of the Value Chain
Keywords:
Agriculture development, Farmer welfare, Morella village, Nutmeg, Value chainAbstract
Nutmeg farmers in Morella Village, Leihitu District, Central Maluku Regency, who cultivate nutmeg as their primary livelihood, continue to operate within a traditional system passed down through generations despite having a weak bargaining position in the market. This study examines the relationship between the value chain and the welfare of nutmeg farmers in Morella Village. This research was conducted in January 2025 in Morella Village, Leihitu District, Central Maluku Regency. Primary data were collected from a sample of 84 farmers and determined using the Slovin formula. Data were collected through structured interviews, using a research questionnaire. The collected data were analyzed using a quantitative approach with statistical analysis through Structural Equation Model-Partial Least Squares (SEM-PLS), aimed at conducting path analysis with latent variables. The results indicate that the value chain significantly influences the welfare of nutmeg farmers in Morella. This implies that improvements in the value chain can directly enhance farmers' income. By adopting good agricultural practices, improving market access, utilizing modern technology, and ensuring the availability of agricultural inputs, farmers can obtain greater value from their products. This study also shows that farmers with better access to market information and technology tend to have stronger bargaining positions, which ultimately leads to increased income and contributes to improved welfare.
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