Value Added Strategy for Post Covid-19 Value Chain Resilience of Horticultures in Batu City and Malang Regency, East Java Saptini M Rahajeng
ICAT Ketindan, IAAEHRD, Ministry of Agriculture
Abstract
In Indonesia, countless enterprises in industrial sector were went out of business which leads to mass unemployment due to Covid19. Contrarily, rural centred up-stream of food value chains, found least affected by the pandemic. The problems arose on the decreasing of consumers purchasing power. Farmers engaged in Horticulture, mainly on vegetables, cut flowers, and fruits, experiencing a sharp declining in market absorption due to the impact of Covid-19 towards tourism and socio-cultural activities. Drying vegetable, flowers, and fruits were the right solution in adding its shelf life and value added. The aims of this study were to determine the added value produced by drying vegetables, flowers, and fruits, identify internal and external factors influencing the business and to formulate proper strategies in developing dried vegetables, flower, and fruit business to continue absorbs the harvest. This research was done by study case method to the farmers groups in Batu City and Malang Regency. The Hayami method was used to analyse the added value, meanwhile the SWOT and SOAR analysis were used for developing strategies. From the result showed that vegetables, flowers, and fruits processing into dried products revealed an added value about Rp 23.000-300.000 or in 26%-72,18% ratio of value added. The profits obtained were about Rp 12.000-297.851 per kg fresh or 100 g of dried vegetables, fruit, and flowers, or about 51%-99,80% of profit rate. The added value and profit were found higher on its diversification products. Based on the added value and benefits obtained, the dried vegetables, flowers, and fruits are feasible to be developed. Based on the internal and external factors, the strategy that is considered feasible to be applied in the dried vegetables, flowers, and fruits industry is a concentration strategy through horizontal integration. This strategy aimed to expand the business by product diversification and expand the market by engaging online marketing
Keywords: Value added, value chain, drying method, strategy development
Topic: Covid-19: Issues and Challenges in Vegetables for Resilience during Pandemic
