Analysis of The Efficiency of Value Chain on Livestock (Case Study: Chicken Meat)

Abstract

In health, livestock products are a source of animal protein which is important for human health. However, in its development, there is a problem of inefficiency in the value chain of livestock products. This study used a case study on the chicken meat value chain. The research objective was to identify the value chain flow of chicken meat, identify the types of inefficient activities, and measure the level of inefficiency of each of these activities. The research method used is Failure Mode Effect Analysis (FMEA). The research was conducted in two stages. The first stage is carried out through observation to identify value chain flows and types of inefficient activities. The second stage is used to conduct an assessment so that the results of the inefficiency level are obtained. The results showed that there were several actors in the chicken meat value chain, including breeders, chicken distributors, chicken slaughter companies, chicken meat distributors, and chicken meat retailers. Overall, there are 25 inefficient activities in the chicken meat value chain. Activities with a high level of inefficiency occur in the process of slaughtering chickens. Therefore, the process of slaughtering chickens needs to be a priority for improvement in the future.