Supply Chain and Added Value Framework of Feed Corn in Ulaweng Sub-District, Bone District, South Sulawesi Hasrina Utami1*, Didi Rukmana2, Nurdjanah Hamid2, Saadah2
1Hasanuddin University, Graduate School, Department of Socio-Economic Agriculture, 90245, Makassar, Indonesian
2Hasanuddin University, Faculty of Economics and Business, 90245, Makassar, Indonesian
Abstract
The problem in the corn supply chain relates to the absorption of corn supplies in feed mills due to the failure of meeting the qualification and continuity requirements. This study aimed to analyze the supply chain and added value of feed corn in Ulaweng Sub-district. The determination of the respondents done by purposive sampling technique and the data were analyzed using the Food Supply Chain Network (FSCN) that consist of five elements of supply chain i.e objectives, structure, business processes, resources, and management. Added value data were analyzed using Hayami method. The results showed that the feed corn supply chain in Ulaweng Sub-district run well. Some business processes were not optimal, especially in the quantity, quality and delivery due to the absence of contractual cooperation. Added value analysis used at the supply chain from the level of farmers, PT. Jiva Agriculture Indonesia, wholesalers, and feed mills. The highest added value was obtained by the feed mills at Rp 6,300/kg as the feed mills carried out the processing. Meanwhile, the lowest added value was obtainend by farmers. Each actor of the supply chain needed to carry out contractual cooperation to guarantee the quantity, quality, delivery cycle, price, market, and shared risks.