Business Process of Red Chili Supply Chain Based on Food Supply Chain Network in Yogyakarta Indonesia

¹ Department of Agribusiness, Faculty of Agriculture, Universitas Myhammadiyah Yogyakarta, Jln. Brawijaya, Tamantirto, kasihan, Bantul, Yogyakarta 55183
² Khon Kaen University, Thailand
³ Department of Agricultural and Resource Economics, Kangwon National University, Korea

^* Corresponding author: susanawati@umy.ac.id

Abstract

Red chili is one of the horticultural crops that has a selling value for farmers. However, the distribution system is an inhibiting factor in farmers’ income. This study aims to analyze the red chili supply chain and business process from the production center in Yogyakarta to consumers in Jakarta, Indonesia. Kulon Progo Regency served as the study’s primary location. The sampling for this study was conducted in stages. A total of 80 farmers were selected purposively as the sample. From farmers to consumers in Jakarta, 67 supply chain actors were gathered using snowball sampling. The Food Supply Chain Network (FSCN) model was employed to structure the data analysis. According to the findings, eight actors and three distinct chains were involved in the red chili supply chain. The product and money flow across the three chains ran smoothly; however, the information flow did not. Both three-cycle and push or pull views made up the business process relationship, with all three chains being in the same state. Nine supporting actors were involved in the red chili supply chain, and several agencies and educational institutions performed collaborative studies. The chain actors were exposed to six risks, and no brands were associated with the distributed products. The contract did not formally bind cooperation along the supply chain.