Supply chain management of red chili based on the food supply chain network in Yogyakarta Indonesia

¹ Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Indonesia
² Department of Agribusiness and Bioresource Economics, Faculty of Agriculture, Universiti Putra Malaysia, Malaysia

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

Abstract

This study aims to describe the relationship structure of the red chili supply chain from Kulonprogo to Jakarta and analyze the supply chain management of red chili based on the Food Supply Chain Network (FSCN). A sampling of red chili farmers was carried out in stages, obtaining 80 people. Meanwhile, the sampling of chain actors after farmers used the snowball sampling technique, resulting in 68 people. The supply chain relationship structure of red chili was analyzed descriptively, whereas supply chain management of red chili was analyzed using an FSCN approach. The results revealed that the red chili supply chain structure was formed by three chains consisting of eight actors. All chain actors entered into an unwritten agreement, except for actors in the auction markets. The transaction system employed the scale and payment methods with a delay system. In addition, government support was only provided in the upstream sub-system. Supply chain collaboration that occurred was the mutual openness and reciprocal relationship. The majority of chain actors had utilized communication media of mobile phones, although few of them made transactions by coming directly to the purchase location. The material communicated was related to price, quality, quantity, and time of payment.