Probability of Cocoa Fermentation Technology Adoption: The Role of Literacy, Capital Access, and Farming Experience

Abstract

Abstract

This study aims to analyze the determinant factors influencing farmers' decisions to adopt cocoa fermentation technology in Sabbang District, North Luwu Regency. Although fermented cocoa beans offer significant economic value-added, the adoption rate in the field still faces various structural and cultural constraints. This research uses a quantitative approach by applying a binary logistic regression model to examine the influence of socio-economic and institutional variables. The results indicate that the probability of adoption is positively and significantly influenced by the level of education, availability of bank capital, availability of informal capital, ability to access information, farm income, access to extension services, and the number of family dependents. A unique finding of this study is the farming experience variable, which exerts a significant negative effect, indicating high resistance to innovation among veteran farmers who are accustomed to the rapid capital turnover pattern from selling raw beans. On the other hand, age, technical management capability, and cash flow stability were not proven to significantly affect the adoption decision. This study concludes that accelerating cocoa downstreaming in the research area requires policy interventions that facilitate integrated capital access and strengthen the intensity of agricultural extension services to restructure the conventional farming paradigm.