Supply chain management analysis of avocado in south Sumatra province through the Food Supply Chain Network (FSCN) method

Fifian Permata Sari; Munajat

doi:10.5219/1873

Authors

Fifian Permata Sari Baturaja University, Faculty of Agriculture, Department of Socio-Economic Agriculture, Street Ki Ratu Penghulu Karang Sari No. 02301, Baturaja 32113, Ogan Komering Ulu District, Indonesia, Tel: +62 821 7685 8655 https://orcid.org/0000-0002-5498-5736
Munajat Baturaja University, Faculty of Agriculture, Department of Socio-Economic Agriculture, Street Ki Ratu Penghulu Karang Sari No. 02301, Baturaja 32113, Ogan Komering Ulu District, Indonesia, Tel: +62 823 7444 4248 https://orcid.org/0000-0002-6450-6014

DOI:

https://doi.org/10.5219/1873

Keywords:

horticulture, avocado, agribusiness, management, FSCN

Abstract

One of the agricultural sub-sectors that occupy a strategic position in agricultural development is the horticultural sub-sector, with one of its potential commodities being avocado. Avocado is one of the export-based commodities, especially in South OKU Regency, South Sumatra Province. This study aims to obtain an overview of the Avocado Agribusiness Supply Chain management in South OKU Regency. The study was conducted in Warkuk Selatan District, South OKU Regency in February 2022. The research method used was a qualitative descriptive method with a type of data using primary data and secondary data. The data analysis method uses the Food Supply Chain Network (FSCN) method, which illustrates South Oku Regency's avocado supply chain model. The results showed that the Avocado Management Supply Chain Management model with the FSCN framework consisted of four main components: the supply chain structure, the business chain process, supply chain management, and supply chain resources. Avocado supply chain targets are still dominated to meet the domestic market and products in the form of fresh avocados for consumption. Avocado supply chain management comprises election partners, contractual agreements, transaction systems, government support, and supply chain collaboration. The avocado supply chain structure in South OKU Regency consists of farmers, collecting traders, local and non-local traders, retailers, and consumers with respective roles in the supply chain structure. Business processes in avocado supply chain management consist of procurement, replenishment, and customer order cycles. Based on marketing margin analysis, the lowest total marketing margin is found in channel IV, with a margin value of Rp 1,500 per kg. The four avocado marketing channels in South Warkuk Ranau District have Farmer’s Share ≥40%, so it is categorized as an efficient channel.

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