Value Chain Analysis of Organic Vegetables on Two Different Supply Chain Systems in Yogyakarta

Abstract

Recently, business of organic vegetables in YogyakartaYregion has been growing substantially. It is characterized by the formation of a new supply chain system called Jogjakarta organic market supply chain (POJOG) in addition to modern retail supply chain system that is already available i.e. Organic Farmers of Merapi (TOM). The different characteristics of these two supply chain systems allow the consumers to shift their preferences from modern retail supply chain to organic market supply chain when buying organic vegetables. Therefore, analysis of the performance and competitiveness of these two different supply chain systems is important for improvement of organic vegetable supply chain in the future. Based on the results of supply chain analysis, it was found that the added value obtained by modern retail supply chains TOM was 58.44%, while that obtained by organic market supply chain POJOG was 38.97%. The marketing margin ratio obtained by such players in modern retail supply chain system as farmers, TOM and Super Indo were 1.29, 1.91 and1.18 respectively, whereas those obtained by farmers and POJOG on the organic market supply chain were 2.10 and 1.29 respectively. In terms of marketing efficiency, Jogjakarta organic market performed better, accounting for 58%, more than double of those performed by modern retail supply chain that only accounted for 26%. Keywords: Value Chain Analysis; Organic Vegetables; Yogjakarta; Marketing Margin