This study explores the impact of new cassava processors in Sukadana, East Lampung district in Lampung province on the production and prices of cassava in the area. A survey of eighty cassava farmers was carried out to explore their relationships with processors, their production cost structures and their cultivation practices. The study found that harvesting age was a critical factor to determine the cassava yield and price in the study area. Three types of farmers were observed, namely farmers collaborating with new external processors (foreign food companies), farmers collaborating with local processors and farmers who have no close relationships with processors. The technical support provided by the emerging processing companies was found to have a positive impact in plant management. It is expected that the increasing demand for cassava induced by biofuel production will attract more companies to the processing business and increase the companies' investment in supporting activities for farmers. This, in return, would contribute to farmers' welfare through improved profit of cassava production.

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