Agriculture supply chain performance and added value of cocoa: a study in Kare Village, Indonesia

Pawana Nur Indah1, Risqi Firdaus Setiawan1, Hamidah Hendrarini1, Endang Yektingsih1 and Rifan Jefri Sunarsono2
1 University of Pembangunan National “Veteran” East Java, Department of Agriculture, Faculty of Agriculture, Surabaya city, 60294, Indonesia
2 Airlangga University, Department of Management, Faculty of Economics and Business, Airlangga, Surabaya city, 60115, Indonesia

Abstract

Indah,  P. N., Setiawan, R. F., Hendrarini, H., Yektingsih, E. & Sunarsono, R. J. (2021). Agriculture supply chain performance and added value of cocoa: a study in Kare village, Indonesia. Bulg. J. Agric. Sci., 27 (3), 487–497

This study aims to determine the condition of the cocoa supply chain, the value added members of the supply chain and supply chain performance measurement, and to enhance the potential performance and added value in researched area. This study was conducted in Kare Village, Indonesia. The method of determining the location was done purposively. The method of determining the sample for cocoa supply chain actors was carried out by using the Simple Random Sampling method while for collectors, wholesalers and SMEs use Purposive Sampling method include 20 cocoa farmers, 1 trade-collector, 1 wholesaler, and 1 cocoa MSMEs. Data collection techniques were through interviews and expert opinion. The analytical method used is descriptive analysis, additional value analysis uses the Hayami method and the design of metric measurements for cocoa supply chain performance uses the SCOR (Supply Chain Operations Reference) - AHP (Analytic Hierarchy Process) method. The results presented that the supply chain conditions for Cocoa in Kare Village had not been in an optimal performance. The additional value analysis showed the proportion of the added value earned by farmers was diverse. The results of the supply chain performance measurement metric design, known that the determinants of supply chain performance in sustainable supply chain management according to experts in the actor cluster (SMEs), the performance Indicator cluster (companies) and the alternative strategy cluster are Increasing Income was diverse too. Increasing the additional value is able to be done by utilizing by-products cocoa processing such as cocoa pulp and cocoa pod husks. The cocoa pulp can be processed into nata products and cocoa juice, while the cocoa pods can be used as fertilizer.

Keywords: Agriculture Supply Chain; cocoa; Analytic Hierarchy Process; Supply Chain Operations Reference; Additional Value

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