Collaborative Strategy for the Supply Chain of Rice: A Case Study on Demak and Sukoharjo Regency, Central Java, Indonesia

https://doi.org/10.22146/agritech.48929

Adi Djoko Guritno(1), Novita Erma Kristanti(2), Megita Ryanjani Tanuputri(3*)

(1) Department of Agro-Industrial Technology, Faculty of Agricultural Technology, Universitas Gadjah Mada, Jl. Flora No. 1, Bulaksumur, Yogyakarta 55281
(2) Department of Agro-Industrial Technology, Faculty of Agricultural Technology, Universitas Gadjah Mada, Jl. Flora No. 1, Bulaksumur, Yogyakarta 55281
(3) Department of Agro-Industrial Technology, Faculty of Agricultural Technology, Universitas Gadjah Mada, Jl. Flora No. 1, Bulaksumur, Yogyakarta 55281
(*) Corresponding Author

Abstract


The problems associated with rice production in Indonesia appear very complicated, due to poor management of the sufficient national rice stock and various unfavorable public policies. Recently, government’s directives on rice importation instigated polemics from several interests, as a result of inappropriate decisions on general rice production, with possible yearly increment. Therefore, there is need to embrace strategy development to balance demand and supply. The purpose of this study was to analyze the rice supply chain in Demak and Sukoharjo, Central Java Province, in an effort to provide effective and collaborative distribution policies at individual levels. In addition, in-depth interviews were conducted for 98 respondents in a bid to acquire relevant and current information for the conceptual framework development. Furthermore, sampling methodologies, termed purposive and snowballing, were applied, followed by the preparation of interview guidelines. The results showed the farmers obtained the lowest revenue margin among other tiers, while several technical challenges were also identified. Consequently, the activities of middlemen with excessive dominant roles in market price determination, were overemphasized, leading to an inefficient supply chain. Meanwhile, government’s position through the Indonesia Logistics Bureau (BULOG) is assumed to be vulnerable in the control of direct supply from farmers or collectors. Based on this study, intense comprehension of rice supply chain was achieved, with further provision of collaborative strategies towards promoting the balance of demand and supply.

Keywords


Collaborative strategy; rice; supply chain

Full Text:

PDF


References

Adam, M., Marwa, T., Azwardi, A., Thamrin, K.M.H., & Bashir, A. (2017). Analysis of Rice Distribution in South Sumatera, Indonesia. International Journal of Economics and Financial Issues, 7 (3), 166 – 171. https://www.econjournals.com/index.php/ijefi/article/view/4528

Antriyandarti, E. (2015). Competitiveness and Cost Efficiency of Rice Farming in Indonesia. Journal of Rural Problems, 51 (2)., 74 – 85. https://doi.org/10.7310/arfe.51.74

Chung, B., Arshad, F.M., Noh, K.M., & Sidique, S.F. (2016). Cost analysis of rice milling: a case study of 7 rice mills in Malaysia. Journal of Agribusiness in Developing and Emerging Economies, 6(2), 173 – 190. https://doi.org/10.1108/JADEE-05-2014-0019

Correa, H.L. (1994). Linking Flexibility, Uncertainty and Variability in Manufacturing Systems: Managing Unplanned Changes in the Automotive Industry. Aldershot: Avebury.

FAO. (1998). Rice Post-Harvest. Retrieved from http://www.fao.org/3/X5427E/X5427E00.htm

Fukui, S., Hartono, S. & Iwamoto, N. (2002). Risk and rice farming intensification in Rural Java. The Japanese Journal of Rural Economics, 4. https://doi.org/10.18480/jjre.4.32

Guritno, A.D. (2016). Supply Chain Risk Management: An Approach to Reduce the Agricultural Product's Logistics Costs. KnE Life Sciences, 3, 6 – 11. https://doi.org/10.18502/kls.v3i3.397

Guritno, A.D.; Kristanti, N.E.; & Tanuputri, M.R. (2018). Risk Mitigation on Supply Chain of Rice: Case Study at Demak and Sleman Regencies. agriTECH, 38 (3), 375 – 380. http://doi.org/10.22146/agritech.38529

Kumar, V., Fantazy, K.A., Kumar, U., & Boyle, T.A. (2006). Implemetation and Management Framework for Supply Chain Flexibility. Journal of Enterprise Information Management, 19(3), 303-319. https://doi.org/10.1108/17410390610658487

Kumar, A., & Kuswaha, G.S. (2015). Value stream mapping: a tool for Indian agri-food supply chain. IRC’s International Journal of Multidisciplinary Research in Social and Management Sciences, 3(1), 45 – 54. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2970327                                                    

Lambert, D.M., Cooper, M.C., and Pagh, J.D. (1998). Supply Chain Management: Implementation Issues and Research Opportunities. The International Journal of Logistics Management, 9(2), 1-20. https://doi.org/10.1108/09574099810805807

Ministry of Agriculture. (2016). Outlook of Agriculture Commodity: Rice. Jakarta: Centre for Data and Agricultural Information System, Ministry of Agriculture.

Nainabasti, A. & Bai, H. (2009). Rice Marketing System and Role of Middlemen in Nepal: A Case Study of Chitwan District. Journal of Rural Problems,45 (1), 14 – 23. https://doi.org/10.7310/arfe.45.14

Rahman, S.M., & Takeda, J. (2007). Measuring the cost of production based on size of farm operation: A study on rice farmers in Jessore Districts of Bangladesh. American Journal of Applied Science, 4(5), 274-283. https://thescipub.com/pdf/10.3844/ajassp.2007.274.283

Sathapatyanon, J., Kuwornu, J.K.M., Shivakoti, G.P., Soni, P., Anal, A.K., & Datta, A. (2018). The role of farmer organizations and networks in the rice supply chain in Thailand. Journal of Agribusiness in Developing and Emerging Economies, 8(3), 554 – 578. https://doi.org/10.1108/JADEE-01-2017-0016

Statistics Indonesia. (2018). Executive Summary 2018: Harvested Area and Rice Production in Indonesia. Jakarta: Subdirectorate od Food Crops Statistics, Statistics Indonesia.

Statistics Indonesia. (2020). Harvested Area, Production and Productivity of Paddy by District 2018. Retrieved from https://jateng.bps.go.id/dynamictable/2016/12/19/44/luas-panen-produksi-dan-produktivitas-padi-provinsi-jawa-tengah-menurut-kabupaten-kota-2018.html

Tanuputri, M.R., Guritno, A.D., & Kristanti, N.E. (2014). Supply Chain Risk Management and Logistics Cost Structure Analysis of Corn (Zea mays L.) to Reduce the Negative Effects of Mycotoxins Growth. Bangkok: Proceeding of The 16th Food Innovation Asia Conference 2014.


 



DOI: https://doi.org/10.22146/agritech.48929

Article Metrics

Abstract views : 244 | views : 207

Refbacks

  • There are currently no refbacks.




Copyright (c) 2021 agriTECH

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

agriTECH has been Indexed by:


agriTECH (print ISSN 0216-0455; online ISSN 2527-3825) is published by Faculty of Agricultural Technology, Universitas Gadjah Mada in colaboration with Indonesian Association of Food Technologies.


website statisticsView My Stats