THE INFLUENCE of GREEN SUPPLY CHAIN MANAGEMENT(GSCM) TOWARD ECONOMIC PERFORMANCE on AGRIBUSINESS APPLES

The purposes of this research are to determine: 1. The influence of green supply chain management (GSCM) practices of apple farmers towards the economic performance on apples agribusiness, 2.The influence of government support and green market towards GSCM practices of apple farmers on apples agribusiness. The research was conducted in Batu city East Java Indonesia. Batu City has an image as an apples city. Apples agribusiness in Batu commonly is small and medium businesses. Respondents of this research were 129 people of apple farmers with random sampling. The data were retrieved through interviews using questionnaires. The data analysis was used analysis of Generalized Structured Component Analysis (GSCA). It is a SEM analysis method based on variance component. The results of this research showed that the GSCM practices of apple farmers positively influenced significantly to the economic performance. It means that if the GSCM practices increase then the economic performance will increase. The indicators of economic performance increasing were showed by the increasing of income and sales of healthy, safe and free chemicals apples. The indicators of GSCM practices are showed by the using of natural fertilizer and pesticide. The GSCM practices are influenced by government support and green market. The government support for the GSCM practice is showed by farmer’s coordination leads by the government officer, funding policy, information given to the farmers, technical assistance aids and infrastructure support. The indicators of green market were showed by the improvement of purchase, consument trust, satisfaction and demand of healthy, safe and free of chemicals apples. From this research it can be suggested to the government to increase its support toward apple farmers to apply the GSCM practices. Besides that the apple farmers of the farmer must increases their attention to green market demand.