MAIZE VALUE CHAIN IN INDONESIA: AN EMPIRICAL STUDY BEFORE AND DURING COVID-19 PANDEMIC

Andy Wijanarko, Rizky Prayogo Ramadhan, Nuning A. Subekti, Nia Rosiana, Syarifah Aminah, Nia Romania Patriyawaty, Bhakti Priatmojo, Siti Mutmaidah, Oky Dwi Purwanto, I. Putu Wardana, Haris Syahbuddin, Priatna Sasmita, Sugiono

Abstract

The article describes a new idea of the maize value chain in Indonesia before and during the COVID-19 pandemic, as we already know that it affected all aspects of life, including agriculture. This research was conducted in East Java, South Sulawesi, and East Nusa Tenggara Province through interviewing stakeholders of the maize value chain. Data collection was carried out at two periods, before and the first year of the COVID-19 outbreak in Indonesia. Using the value chain mapping analysis, governance analysis, and marketing efficiency analysis on the maize value chain, it is confirmed that all marketing institutions except feed producers (mills) experienced a decrease in the R/C ratio, and profits and marketing cost were increased all actors. The R/C values and feed mills profits were even higher during the COVID-19 pandemic than before. Although there was a 2.96% decrease in the selling price and a 16.6% increase in costs during the pandemic, the difference between the selling price and the purchase price reached 25%, the R/C value became higher during the pandemic. In general, maize value chain performance was still efficient because the average R/C obtained was more than zero (0.134). The increase in prices at the consumer level was not perfectly transmitted to farmers' level prices. Meanwhile, the prices decline at the consumer level was perfectly transmitted to that at the farmer level.

 

Keywords: Value Chain Analysis, Maize, COVID-19 Pandemic, Agriculture, Innovation, Technology

 

DOI:https://doi.org/10.35741/issn.0258-2724.56.6.49


Full Text:

PDF


References


FAOSTAT. (2021) Production of Maize: Top 10 producers 2019. Retrieved from http://www.fao.org/faostat/en/#rankings/countries_by_commodity

CENTRAL BUREAU OF STATISTICS. (2019) Data Komoditas Pertanian dan Ekspor Impor Berdasarkan Negara Asal. Jakarta (ID): Badan Pusat Statistik.

MINISTRY OF AGRICULTURE. (2019) Produksi Jagung Menurut Provinsi, 2014 – 2018. Retrieved from https://www.pertanian.go.id/Data5tahun/TPATAP-2017(pdf)/23-ProJagung.pdf.

FOOD SECURITY INFORMATION NETWORK. (2020) Global Report on Food Crises 2020. Retrieved from https://www.fsinplatform.org/sites/default/files/resources/files/GRFC_2020_ONLINE_200420.pdf.

ILESANMI, O.S., BELLO, A.E., and AFOLABI, A.A. (2020) COVID-19 pandemic response fatigue in Africa: causes, consequences, and counter-measures. The Pan African Medical Journal, 37.

TYBRING-GJEDDE, C. (2020) The economic consequences of the COVID-19 pandemic [Internet] Draft Special Report. Brussels (BG): NATO Parliamentary Assembly. Retrieved from https://www.nato-pa.int/document/2020-economic-consequences-covid19-pandemic-report-christian-tybring-gjedde-094-esc-20-e.

INTERNATIONAL LABOUR ORGANIZATION. (2020) COVID-19 and the impact on agriculture and food security. ILO BRIEF.

UNITED STATES DEPARTMENT OF AGRICULTURE. (2020) Economic Research Service: Food Prices and Spending. Retrieved from https://www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/food-prices-and-spending/.

SOOSAY, C., FEARNE, A. and DENT, B. (2012) Sustainable value chain analysis – A case study of Oxford Landing from 'vine to dine. Supply Chain Management: An International Journal, 17(1), pp. 68-77.

BOONEY, L., CLARK, L., COLLINS, R., and FEARNE, A. (2007) From Serendipity to Sustainable Competitive Advantage: Insight from Houston’s Farm and Their Journey of co-innovation. Supply Chain Management: An International Journal, 12(6), pp. 395-399.

KAPLINSKY, R. (2000) Spreading the gains from globalization: What can be learned from value chain analysis? Journal of Development Studies, 37(2), pp. 117–146.

KAPLINSKY, R., and MORRIS, M. (2001) A handbook for value chain research. Retrieved from www.nu.ac.za/csds.

M4P. (2008) Making Value Chain Better for the Poor: A Tool book for Practitioners of Value Cahin Analysis, Version 3. Making Markets Work Better for the Poor (M4P) Project, UK Department for International Development (DFID). Agricultural Development International. Phnom Penh.

GRUNERT, K., FRUENSGAARD, J., RISOM, L., JESPERSEN, K., and SONNE, A. (2005) Market orientation of value chains; a conceptual framework based on four case studies from the food industry. European Journal of Marketing, 39(5/6), pp. 429-455.

CATTANEO, O., GAREFFI, G., and STARITZ, C. (2010) Global Value Chains in Postcrisis World: A Development perspective. Washington: The World Bank.

FURUHOLT, B., and MATOTAY, E. (2011) The developmental contribution of mobile phones across rural Africa's agricultural value chain. The Electronic Journal of Information Systems in Developing Countries, 48(7), pp. 1–16.

RICH, K.M., ROSS, R.B., BAKER, A.D., and NEGASSA, A. (2011) Quantifying value chain analysis in the context of livestock systems. Jurnal of Food Policy, 36, pp. 214-22.

HUMPHREY, J., and SCHMITZ, H. (2001) Governance in global value chains. IDS Bulletin, 32(3), pp. 1-17.

MD TAJ, U., APURBA, G., MD SALEHUR, R., and AURUP RATAN, D. (2019) How can governance improve efficiency and effectiveness of value chains? An analysis of pangas and tilapia stakeholders in Bangladesh. Aquaculture, 510, pp. 206-215.

GEREFFI, G., HUMPREY, J., and STURGEON, T. (2005) The Governance of Global Value Chains. Review of International Political Economy, 12(1), pp. 78-104.

AHMAD, T., DARYANTO, A., OKTAVIANI, R., and PRIYARSONO, D.S. (2018) Global Value Chain of Indonesian Pulp and Paper. Journal of Manajemen and Agribusiness, 15(2), pp. 118-128.

WICAKSANA, I., NURMALINA, R., and SUPREHATIN. (2020) Value Chain Governance for Smoked Fish Products in The North Coast of Central Java. Journal of Manajemen and Agribusiness, 17(3), pp. 304-314.

SAMPATH, P.G., and VALLEJO, B. (2018) Trade, global value chains, and upgrading: what, when and how? The European Journal of Development Research, 30(3), pp. 481-504.

ARJAKUSUMA, R.S., HARTOYO, S., and FAHMI, I. (2011) The Value Chain in the Dairy Industry: A Case Study of PT. Cisarua Mountain Dairy (Cimory). Journal of Manajemen and Agribusiness, 10(1), pp. 22-32.

OECD. (2021) Global Value Chains: Efficiency and Risks in the Context of COVID-19. “Tackling Coronavirus (COVID-19): Contributing to a Global Effort. Retrieved from https://read.oecd-ilibrary.org/view/?ref=1060_1060357-mi890957m9&title=Global-value-chains-Efficiency-and-risks-in-the-context-of-COVID-19&_ga=2.153926462.729794953.1629301292-1025240445.1629301292.

INTERNATIONAL MONETARY FUND. (2020) World economic outlook. A long and difficult ascent. DC (US): IMF Publication Services.

PURBA, H.J., YUSUF, E.S., and ERWIDODO. (2020) Dampak Pandemi COVID-19: Perspektif Adaptasi dan Resiliensi Sosial Ekonomi Pertanian. Bogor: IAARD Press.

FIRDAUS, M. (2020) Ketahanan Pangan dan Peran Teknologi Pertanian di Masa Pandemi. Pangan Talk: Ketahanan Pangan dan Peran Teknologi Pertanian di Masa Pandemi.

ROHMANI, S.A. (2020) Implikasi COVID-19 Bagi Upaya Pemenuhan Kebutuhan Pangan. Jakarta: Biro Perencanaan Sekretariat Jenderal Kementerian Pertanian.

HÖHLER, J., and OUDE LANSINK, A. (2021) Measuring the impact of COVID-19 on stock prices and profits in the food supply chain. Agribusiness, 37, pp. 171-186.

ISAAC, O.O., OLUMIDE, O.A., and OLASOJI, O.A. (2020) Value Chain Analysis of Maize Production among RuralHouseholds in Oyo State, Nigeria. IOSR Journal of Agriculture and Veterinary Science, 13(9), pp. 44-50.

GEREFFI, G., HUMPHREY, J., and STURGEON, T. (2003) The Governance of Global Value Chains. Forthcoming in Review of International Political Economy. Hudson: Blackwell Publishing.

SCHIPMANN, C. (2006) Value chains for better integration of smallholders to trade – the case of chili in Ghana. Master Thesis. Germany: Faculty of Agriculture and Horticulture: Humboldt-University Berlin.

SWASTIKA, D.K.S., AGUSTIAN, A., and SUDARYANTO, T. (2011) Analisis Senjang Penawaran dan Permintaan Jagung Pakan dengan Pendekatan Sinkronisasi Sentra Produksi, Pabrik Pakan dan Populasi Ternak di Indonesia. Jurnal Informatika Pertanian, 20(2), pp. 65-75.

TRIENEKENS, J.H. (2011) Agricultural value chains in developing countries: a framework for analysis. The International Food and Agribusiness Management Review, 14(2), pp. 51-82.

WITJAKSONO, J. (2017) Kajian Rantai Nilai dan Analisis Nilai Tambah Jagung. Jurnal Ilmu Pertanian Indonesia, 22(3), pp. 156-162.

MELNYK, S.A., CLOSS, D.J., GRIFFS, S.E., ZOBEL, C.W., and MACDONALD, J.R. (2015) Understanding supply chain resilience. Supply Chain News. Retrieved from https://www.supplychain247.com/article/understanding_supply_chain_resilience.

HAYES, D.J., SCHULZ, L.L., HART, C.E., and JACOBS, K.L. (2020) A descriptive analysis of the COVID-19 affects U.S. pork, turkey, and egg markets. Agribusiness, 37, pp. 122-141.

COLLINS, R., DENT, B., and BONNEY, L. (2015) A Guide to Value-Chain Analysis and Development for Overseas Development Assistance Projects. Canberra: Australian Centre for International Agricultural Research.

DONOVAN, J., FRANZEL, S., CUNHA, M., GYAU, A., and MITHOFER, D. (2015) Guides for value chain development: a comparative review. Journal of Agribusiness in Developing and Emerging Economies, 5(1), pp. 2–23.

BAKER, D., DIZYEE, K., PARKER, W., SCRIMGEOUR, F., and GRIFFITH, G. (2017) Primary industry chains and networks: analysis for public and private interests. Systems Research and Behavioral Science, 34(6), pp. 699–709.

MANGNUS, E., and VAN WESTEN, A. (2018) Roaming through the maze of maize in northern Ghana. A systems approach to explore the long-term effects of a food security intervention. Sustainability, 10(10), pp. 3605.

DOLAN, C., and HUMPHREY, J. (2004) Changing Governance Patterns in the Trade in Fresh Vegetables between Africa and the United Kingdom. Environment and Planning A, 36, pp. 491-509.

TURNIP, D.M.S., ARKEMAN, Y., and MUSLICH, Y. (2019) A Design of Competitive Cocoa AgroIndustry Supply Chain System in Putat Village, Gunung Kidul District. International Conference on Digital Agriculture from Land to Consumers (ICDALC 2018), 20–21 September 2018. IPB International Convention Center (IICC). Bogor: Institute of Physics Publishing.

UNCTAD. (2020) Analysing the Maize Value Chain for Export in Lao People’s Democratic Republic. Geneva.

ROSIANA, N., NURMALINA, R., WINANDI, R., and RIFIN, A. (2017) Efficiency Analysis of Indonesian Coffee Supply Chain Network Using A New DEA Model Approach: Literature Review. Asian Social Science, 13, pp. 158-166.

TAMA, I.P., AKBAR, Z., and EUNIKE, A. (2018) Implementation of system dynamic simulation method to optimize profit in supply chain network of vegetable product.Denpasar: IOP Publishing.

ASMARANTAKA, R., ATMAKUSUMA, J., MUFLIKH, Y.N., and ROSIANA, N. (2017) Konsep Pemasaran Agribisnis: Pendekatan Ekonomi dan Manajemen. Jurnal Agribisnis Indonesia, 5(2), pp. 151-172.

DIZYEE, K., BAKER, D., and RICH, K.M. (2017) A quantitative value chain analysis of policy options for the beef sector in Botswana. Agricultural Systems, 156, pp. 13-24.

HUDSON, D. (2007) Agricultural Markets and Prices. Blackwell Publishing.

DAHL, D.C., and HAMMOND, J.W. (1977) Market and Price Analysis of the Agricultural Industries. McGraw-Hill, Inc.

KOHLS, R.L. and UHL, R.L. (2002) Marketing of Agricultural Products. New Jersey: Prentice-Hall.

ATER, P.L., AYE, G.C., and DANIEL, A. (2018) Analysis of maize value addition among entrepreneurs in Taraba State, Nigeria. International Journal of Environment, Agricultural, and Biotechnology, 3(6).

RICH, K., and DIZYEE, K. (2016) Policy Options for Sustainability and Resilience in Potato Value Chains in Bihar: A System Dynamics Approach. NUPI.


Refbacks

  • There are currently no refbacks.