Department of Agribusiness, Halu Oleo University Jointly with Perhimpunan Ekonomi Pertanian Indonesia - Indonesian Society of Agricultural Economics (PERHEPI/ISAE)
The availability of high-quality soybean seeds is a fundamental prerequisite for improving crop productivity and supporting sustainable agricultural development. In Indonesia, the Soybean Seed Management Unit (Unit Pengelola Seed Sumber UPBS) plays an important role in producing and distributing certified soybean seeds. However, empirical evidence on the economic performance of UPBS at the farm level remains limited, particularly regarding its contribution to sustainable seed production. This study aimed to assess the economic performance and feasibility of soybean seed production managed under a Soybean Seed Management Unit in Indonesia. The research was conducted at the Soybean Seed Management Unit located in Suo-Suo Village, Sumay District, Tebo Regency, Jambi Province, Indonesia. The study used a case study approach, drawing on primary and secondary data from interviews, field observations, and documentation. Economic performance was evaluated using farm cost, revenue, income, and Revenue–Cost (R/C) ratio analyses. The results showed that soybean seed production under the UPBS generated profitable farming outcomes, as indicated by total revenue exceeding total production costs and an R/C ratio greater than one, demonstrating that soybean seed production is economically feasible. The findings also indicate that organized seed management improves the availability of quality soybean seeds while providing economic incentives for seed producers. These results highlight UPBS's strategic role in strengthening local seed systems and supporting the sustainability of soybean seed production in Indonesia. This study contributes to the literature by providing empirical evidence on the economic performance of a community-based soybean seed management unit and demonstrating its potential to support sustainable seed production through economically viable seed multiplication and distribution systems. The findings provide practical insights for policymakers and agricultural institutions to strengthen soybean seed systems and enhance national soybean production and food security.
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