Development of strategic plan for palm sugar agro-industry using SWOT analysis and business model canvas: Case study in Lombo Village, Sidrap District

Agro-industry is the fundamental part of a development of the agricultural sector. One form of promising agro-industry to be developed in Indonesia is the development of products from palm sugar commodities. The purpose of this research is to determine how to develop a business strategy and increase the potential of the palm sugar industri in Lombo Village, Sidrap District. This study aims to: 1. determine external and internal factors; 2. formulate and analyze internal and external factors, which include strengths, weaknesses, opportunities, and threats, from the development of palm sugar agribusiness. 3. Determine strategic priorities based on existing potentials, capabilities, and constraints. 4. Define a business model canvas.The method used in this research is descriptive qualitative. This study used an accidental sampling method with a total sample size of 40 palm sugar farmers. Data analysis was performed using SWOT matrix analysis and the Business Model Canvas (BMC). The conclusion from the internal matrix analysis is that the Strategic Factor (IFAS) 5.295 and the External Strategic Factor (EFAS) 4.89. This illustrates that the palm sugar industry in Lombo Village, Sidrap District has strengths that can be developed further. The advice to palm sugar farmers in this area is to maintain product taste, as well as carrying out various innovations in diversifying palm sugar products and making product packaging attractive so that it will increase added value.


Introduction
The agricultural sector is still holding important role in most parts of Indonesia.Agriculture must be accompanied by upstream and industrial development downstream in order to take advantage of the advantages competitive with other agricultural systems integrated with agribusiness and agro-industry, which is based on efficiency, productivity, quality and added value, responsive to scientific developments knowledge and technology and application modern management to realize professional agriculturists industry work ethic and make it happen agriculture as a vehicle for creation welfare and prosperity for Public.
In the future development of the agricultural sector, the agricultural sector will be a very important sector in national development, so the role of the agro-industry will be even greater.Agro-industry is 1230 (2023) 012002 IOP Publishing doi:10.1088/1755-1315/1230/1/012002 2 the use of agricultural products as input factors in an industrial process as the main raw material [1].Development strategy of palm sugar is produced by adjusting the characteristics and problems faced by the agro-industry sector.The strategy to increase palm sugar production will affect the increase in business competitiveness.This will contribute to increasing farmers` income.
Palm sugar is very suitable to be developed because it is an alternative product to meet the supply of sugar while supporting community food security.In addition, palm sugar has many advantages: it has a calorie content as a natural food coloring in food; it has a high fiber content, so it is good for digestion; it inhibits the absorption of cholesterol by the body [2], which agrees with [3]; it is a source of antioxidants; it prevents anemia; increases immunity; it stabilizes cholesterol in the blood [4]; it contains lots of vitamins [5]; and is an antidote to free radicals [6]; prevention of diabetes [7].Palm sugar is one of the leading commodities in South Sulawesi, which has an area of 7,293 hectares of palm trees to produce 3,174 tons per year of palm sugar.One of the palm sugar-producing areas is Lombo Village, Sidrap Regency.
Most of the residents of Lombo Village cultivate palm trees and process the palm tree sap water into brown sugar.The number of palm tree cultivators is 43 farmers.Based on the Lombo village profile, it is stated that the number of productive palm trees is 700.The palm sugar processing industry in Lombo Village is still carried out very simply by using makeshift equipment.Therefore, a business and production development strategy is urgently needed to improve the welfare of the local community [8].
Palm sugar is the result of sap water tapped from palm trees.Palm sugar has many health benefits, so it can be sold at high prices [9].Palm trees can also produce a source of starch (aci), the stems can be made into handicrafts and household furniture [10].Palm sugar has a strong aroma, a sweet taste, and a legit taste, with a soft to sticky texture [11].
Palm juice contains quite a lot of sucrose, so it can be processed into brown sugar and granulated sugar [12].the process of making palm sugar is by cooking the sap water until it becomes thick.the next step is to make ant sugar or block it when the palm sugar is cold [13].Palm trees have benefits and high economic value such as household furniture so it is very necessary to cultivate oil palm plants [14].
The description above shows that Lombo Village has an opportunity to develop palm sugar production.However, currently, the process of processing liquid palm sugar into palm sugar is carried out simply at various stages of the sugar-making process.There are three stages that should get more attention: the cultivation of palm trees by replanting, the process of processing and heating liquid sugar, the packaging of palm sugar, and the processing of palm sugar products.There are several obstacles in the production of palm sugar, including quality and quantity, that are still lacking, so a comprehensive analysis is needed in the future for the development of the palm sugar industry Based on the description above, this study aims to examine the strategy for developing the palm sugar industry in Lombo Village, Sidrap Regency.This research is expected to be a useful reference source for the government of Sidrap Regency in developing and improving the small palm sugar industry strategy From the description described above, this study intends to: 1).Describe internal and external factors with a SWOT analysis of palm sugar agribusiness development, and 2).Determine strategic priorities based on potential, capabilities, and constraints faced in the development of the palm sugar industry.3).Defining a Canvas Business Model (BMC)

Materials and methods
The type of research used in this study is descriptive research.According to [15], descriptive research is a research method that describes the characteristics of the variables or phenomena studied.This research was conducted in June and September 2022 in Lombo Village, Sidrap Regency.The sampling method was carried out by purposive sampling with a specific purpose, where the population was 40 palm sugar farmers Data collection methods in this study are: • Interviews were conducted to obtain data from palm sugar farmers and the local government at the research location.Interviews were conducted to collect data on the strengths, weaknesses, opportunities, and threats of the palm sugar industry • The documentation method is used to collect data and conditions of the palm sugar industry in the research area.

• Giving questionnaires to respondents
This study uses primary and secondary data.Secondary data was obtained from various related offices in Sidrap Regency, such as the Central Statistics Agency for the Regency and the Department of Industry and Trade.Primary data was obtained from direct observation of the research location.This study aims to analyze and identify the palm sugar business model using BMC which is integrated with SWOT Internal Factors Analysis Summary (IFAS) and External Factors Analysis Summary (EFAS) analysis in the palm sugar business in Lombo Village

Business model canvas (BMC)
The Business Model Canvas is a management strategy designed to convey business ideas and concepts in a visual form.According to [16], the business model canvas explains how a new business can benefit.The business model canvas explains the basic thinking about how an organization creates, delivers, and achieves value [17].According to [18] and [16], the canvas business model provides an understanding of content, structure, and transaction management designed in such a way as to create business value.There are nine elements to the business model canvas.The nine elements are customer segments, value propositions, channels, customer relationships, sources of income, resources, activities carried out, cooperation, and cost structure.These elements can be used as tools to propose new business model.

SWOT Analysis
Data analysis was performed using descriptive statistical analysis and SWOT analysis.SWOT analysis is a technique used to identify strengths, weaknesses, opportunities, and threats with which to develop a proper business plan.The purpose of a SWOT analysis is to increase awareness of the factors used to make business decisions or establish a business strategy.According to [19], the main purpose of a SWOT analysis is to be able to make an analysis that summarizes external and internal factors, identify risks and problems that must be solved, and establish a business plan that has high competitiveness.From the explanation described above, it is clear that SWOT analysis is very useful in turning weaknesses into strengths, minimizing business losses, and better understanding existing threats and opportunities.
The SWOT matrix is used to develop organizational or corporate strategies that explain in more detail the opportunities and threats faced by a business.This matrix can produce four possible strategies.According to [20], alternative criteria for business strategy are:

Internal factors.
You will get analysis data on the internal part of the business itself from these internal factors.The SWOT analysis in the internal section includes • Strength-is a component that will provide advantages and benefits in business compared to others • Weakness-is a component that will determine any weaknesses in the business being run.

External factors.
To obtain external factors, you will need outside parties.For example, by distributing questionnaires to consumers or potential customers.External factors in the SWOT analysis include: • Opportunity.You can find out what opportunities exist that can be utilized in developing the company in the future.• Threat.This component is useful for knowing any threats that might be faced later when running a business

Business model canvas (BMC)
The business model canvas is determined from the results of the respondents' answers as follows: 1) Consumer segmentation is a very important stage in a business's process of determining its target market.Segmentation means sorting and grouping various customers according to their characteristics, needs, and business goals.The results of this study indicate that the customer segments of the palm sugar industry in the research location are middlemen and direct buyers.

2) Value of Proportion
This business is carried out by paying attention to value proportion in fulfilling consumer demands.A very important value proposition is the very good quality of palm sugar which causes the demand for palm sugar to increase in the future so that it will increase the income level of the palm sugar farming community.

3) Channel
Producer and consumer relationship in the palm sugar industry are well maintain, so direct sales generate additional income.

4) Customer relationships
To maintain good relations with consumers, the most important thing is the existence of mutual trust between producers and consumers, besides that producers thank and ask for feedback from customers to get new information and knowledge that must be improved.The goal of maintaining customer relationships is to build sustainable and profitable relationships with customers.

5) Revenue Stream
Most of the farmers' income in Lombo Village comes from selling palm sugar, either through middlemen or directly to buyers.

6) Key Resources
The availability of large palm tree cultivation areas and the availability of human resources (farmers) in the research area are the main assets in the development of the palm sugar industry.

7) Key activity
The key activities carried out in this industry consist of 4 stages, the first stage is the process of tapping the sap water from the sap trees in the forest and then bringing it to industrial houses.The second stage is the cooking process which is carried out in processing the tap water of the sap into rock sugar and palm sugar.The next stage is molding the cooked sugar into the sugar mold.The last stage is the process of packaging the results of sugar production into packages and ready to be marketed.

8) Key Partnership
In palm sugar production activities, farmers have very good cooperation with land owners and very large support from the local government, so that the palm sugar industry can develop and will improve people's welfare through increased income.9) Cost structure There are several cost components that must be provided in developing a palm sugar business, such as production equipment and fuel.Interviews conducted with farmers.local government, and local communities show that, there are many factors affect the production of palm sugar at the research location.These factors can be clearly explained in the SWOT Analysis Matrix

SWOT Analysis Matrix
The SWOT matrix describes how the external opportunities and threats faced by the company can be adjusted to the strengths and weaknesses of the business so that the company can make various policies and formulate better business development strategies.The SWOT matrix is a matrix that integrates internal and external strategic factors which is divided into 4 sections, as shown in the image below:

5) Palm sugar production fluctuates 6)
The advantage of the palm sugar that is produced is its red color and sweet taste 7) The marketing of palm sugar products is carried out by selling directly to consumers 8) The available capital is still limited, so the production process is carried out in a traditional way 9) Developing a palm sugar business model

Explanation of External Strategic Factors (EFAS).
External factors in the palm sugar processing industry in Lombo Village based on the SWOT model are: 1) In developing the palm sugar business, the role of the local government is very important.
2) Support from the private sector will greatly affect the palm sugar business 3) Support for information technology and digital technology facilities and infrastructure is urgently needed.4) Support from the younger generation is still very weak 5) Weather conditions greatly affect the quality of sap water.6) The support and role of local government are very supportive of the development of the palm sugar business.
The explanations and descriptions described above show that the strengths, weaknesses, opportunities, and threats faced in the development of the palm sugar business in Lombo Village will make it very easy to develop a good business strategy.The calculation results are shown in the following table : Table 3 The matrix table shows that the total v alue of internal strategy factors is 5.295, and the position of this value is above or exceeds the weighted average of 2.5.This situation explains that internally, the small palm sugar industry in this area can take advantage of its strengths and potential to reduce the impact of its weaknesses.
Several sources of strength or excellence that must be maintained and developed include the uniqueness of palm sugar at 0.330.The weakness factor that is considered to influence the development of the palm sugar business in Lombo Village is low and unstable production capacity (0.218), and the last weakness factor is that the palm sugar industry is still a small industry (0.128).

External Strategic Factors (EFAS).
Based on the results of interviews with respondents, data were obtained regarding the external strategic factors of the palm sugar business which are described in the following table : Table 4 The table above illustrates the total value obtained from all external factors of 4.89; the position of this value is above the weighted average value (2.5).This shows that externally, the palm sugar small industry in this location is very good to develop with the strengths and opportunities it has at (0.402).
Factors that pose a threat to the development of the palm sugar business must be minimized so that this industry can continue.The threat that must be addressed is the existence of palm sugar substitution (0.178).Apart from that, the thing that needs a solution right away is the cultivation or replanting of palm trees, which takes time (0.124).Based on the results of the calculations in the analysis in the table, it can be concluded that, currently, the palm sugar business is in a favourable position for further development.
Judging from the description above, the development strategy is a strategy that supports aggressive growth by taking advantage of existing opportunities, such as: (1) optimizing the production of palm sugar, which has its own uniqueness and characteristics.(2) Making palm sugar a regionally superior commodity; (3) Optimizing government and private support The power potential of palm sugar production requires maximum production technology innovation. 1) The process of cooking sap water into palm sugar must pay attention to the PH content so that the palm sugar produced has maximum quality; 2) Designing packaging designs for palm sugar products that are more attractive, practical, economical, and hygienic.

Conclusion
Based on the results of internal factor and external factor data analysis, the following conclusions are obtained: 1.The internal environment that provides strength in the development of the palm sugar business is carried out from generation to generation by involving family members and adequate raw materials, and the product has the advantages of red color and a sweet taste.
2. The internal environment that provides weaknesses in the development of the palm sugar industry consists of limited capital, traditional equipment, simple marketing systems, and a lack of knowledge about business management 3.The external environment provides opportunities for the development of the palm sugar business in the form of government support, the role of the tourism sector, and adequate telecommunications facilities.

Table 1 .
Palm sugar business model canvas (BMC) 3. Sale of Palm Sugar3.1.1.Result of analysis.The result of analysis is as follows:

Table 2 .
Relationship Matrix of Strengths, Weaknesses, Opportunities, and Threats in Palm Sugar Agroindustry 1230 (2023) 012002 IOP Publishing doi:10.1088/1755-1315/1230/1/01200210 4. The external environment that poses a threat to the development of the creative industry in the palm sugar craft sector is fluctuating weather conditions, rejuvenation of palm trees that take time, little capital assistance from the government, a lack of interest from the younger generation, and limited technological knowledge 5.The palm sugar business in Lombo Village is a profitable industry.The development of the palm sugar business in this area has strengths that can be developed.Thus, the development strategy used is one that supports aggressive growth, namely the S-O (Strength Opportunities) strategy, namely by utilizing the strength of the palm sugar processing industry to capture existing opportunities by (1) developing farmer skills in differentiating palm sugar products and (2) making palm sugar a regionally superior product.(3) Increasing government and private support; (4) Product marketing mechanisms must be developed; and (5) Mastery of production technology