COMMODITY CHAIN MANAGEMENT OF EAST JAVA MILK INDUSTRY: STRATEGY TO ACHIEVE MILK SELF-SUFFICIENT PROGRAM
Andrie Kisroh Sunyigono1, Elys Fauziah1 and Mulaab2
1Agribusiness Department, Faculty of Agriculture, University of Trunojoyo Madura,
2Informatics Engineering Department, Faculty of Engineering, University of Trunojoyo Madura
*Correspondingauthor: Alamat email ini dilindungi dari robot spam. Anda memerlukan Javascript yang aktif untuk melihatnya., telepon: 081219802900
ABSTRACT
Milk industry faced several problems. In the downstream, the problems were lack of feeder cattle, low of productivity, the feed price was high, small-scale industry and un-skilled labour. In the middle-process, the problems were recording system was low, traditional technology, grazing area was limited, lack of working capital and managerial problem. Further, the problem in the upstream were price of feeder cattle was fluctuated and price of milk was low. Because of very complicated problems that mention above, the progress of milk industry is very slow and they only fulfilled 27% of national demand. The goals of this research were 1) To understand the characteristic of dairy cow industry in East Java, 2) to identify and map the main actors involved in the core processes of milk commodity chain in East Java, 3) to observe the principal function of the actors as well as the interaction among the actor. and 4) To analyse the strategy for strengthening dairy cow commodity chain. The research was conducted in Pasuruan and Probolinggo Residence. The number of respondent was 81 persons that consist of input supplier, farmer, trader and processor. The analytical tools were descriptive, actor network analysis, and commodity chain analysis.The results of the research were: 1) During 2006-2013, average dairy cow population in East Java increased 10% per year, 2) The core processes in dairy farming system are input provision, raising, milking, transportation and marketing, 3) the bargaining position of input supplier and farmer were less than the trader and processor. The recommendations were: 1) it was needed to improve the bargaining position of input supplier and farmer through revitalization of the commodity chain in milk industry, 2) the government should force the farmer institution through improving of the farmer cooperatives.
Keywords: dairy, commodity chain, core processes, value-added