PERFORMANCE ANALYSIS OF SUPPLY CHAIN AND VALUE CHAIN OF COFFEE PLANTATIONS IN EMPAT LAWANG REGENCY, SOUTH SUMATRA OF INDONESIA

Abstract

The study was conducted to measure the performance of the smallholder coffee supply chain and value chain starting from village collectors, sub district collectors, and wholesalers in Empat Lawang Regency. This study uses a qualitative descriptive analysis. Respondents consisted of 40 coffee farmers who were selected by simple random sampling, and 14 traders consisting of 8 village collectors, 4 sub-district collectors and 2 wholesalers, who were selected purposively. Data were analyzed using the Supply Chain Operation References (SCOR) model approach and statistical analysis of the Analytical Hierarchy Process (AHP) as well as value chain concept analysis. Based on the results of the research on the smallholder coffee supply chain system at level-1 the value of the Inconsistency Ratio of institutional actors of village collector traders, sub-district collectors, and wholesalers respectively was 0.091, 0.070, 0.099 which showed all values less than 0.1 indicating that the results of the weighting of the criteria Plan, Source, Make, Deliver, Return are acceptable. At level-2 the Inconsistency Ratio sub-criteria Reliability, Responsiveness, Agility, Cost, Asset in each institutional actor of village collector traders, sub-district collectors, and wholesalers respectively are 0.094, 0.091, 0.081 which means it is accepted because the value is less than 0.1. Level-3 shows that the final results of the best supply chain performance values are 0.208 wholesalers, 0.123 village collectors, and 0.034 sub-district traders. For the smallholder coffee value chain, there are three value chain networks for wet and dry processed coffee products and for coffee powder products, there are two value chain networks.

Keywords

• supply chain
• value chain
• scor model
• ahp