Analysis of the agribusiness potential of natural dye plants in supporting the environmentally friendly ulos cloth industry in North Sumatra, Indonesia

The aim of this study is to examine the potential of natural dye plant agribusiness in supporting the development of an environmentally friendly ulos cloth industry in Tarutung, North Sumatra. A quantitative approach was applied using Structural Equation Modeling (SEM) with data collected from 142 respondents, including natural dye plant farmers, ulos cloth craftsmen, and related business actors. The analyzed variables include Agribusiness Potential (AP), Availability of Raw Materials (RM), Institutional Support (IS), and Market Access (MA) as mediating variables influencing the development of the environmentally friendly ulos cloth industry (EF). Data were processed using LISREL software. The results show that the availability of raw materials, market access, and training have a significant effect on the potential of natural dye plant agribusiness. Furthermore, agribusiness potential is found to be a strong mediating factor in enhancing the development of the environmentally friendly ulos cloth industry. These findings emphasize the need to strengthen the upstream agribusiness sector through integrated policies, technology, and market strategies to support the sustainability of the traditional textile industry.