Supply chain analysis of incense in North Tapanuli Regency

Engineering Management Study Program, Faculty of Industrial Technology, Institut Teknologi Del, Toba, Indonesia, 22381

^* Corresponding author: yosef.manik@del.ac.id

Abstract

Incense (Styrax sumatrana J. J. Sm) is a non-timber forest commodity in North Tapanuli Regency. This study aims to map out incense supply chain in North Tapanuli, to analyze the stakeholders who play role, and to determine the added value of incense throughout its supply chain models. Using snowball sampling, this study found different supply chain models and stakeholders who play role, namely farmers, village collectors, large village collectors, sub-district collectors, district collectors, agents, exporters, and consumers. Calculation of the added value of incense for each stakeholder throughout the supply chain was carried out using the Hayami method. The results indicate that farmers who sell their crops to sub-district collectors get the highest added value with R/C ratio of 2.18. Further, the stakeholders were also mapped out into quadrants based on power and interest in incense value chain. Unexpectedly, stakeholders who have high influence and interest are the collectors, while the farmers are only the subjects, namely actors who are high in terms of interest but low in influence. The result of this study is useful for developing of incense trade system that favors its community stakeholder.