Corn Agroindustry Supply Chain Management in Indonesia: Increasing Added Value and Competitiveness through the Hayami Method

Authors

DOI:

https://doi.org/10.12928/si.v22i2.241

Keywords:

Added value, Corn, Hayami, Supply Chain

Abstract

The agro-industry serves as a crucial intermediary for transforming agricultural societies into industrial ones, contributing to a balanced economic structure. This sector processes agricultural products through various methods, adding value and yielding higher profits than raw commodities. Corn, a staple in Indonesian agriculture, is predominantly cultivated with limited post-harvest activities, impeding rural economic growth. This study examines the supply chain management of the corn agro-industry to enhance value addition and competitiveness. Utilizing the Hayami method, the research identifies stages in the corn processing chain, including cleaning, grinding, filtering, and drying, and evaluates the value added at each stage. The analysis reveals that the supply chain involves multiple stakeholders, from farmers to retailers, and highlights the disparity in value addition among different actors. The study concludes that effective supply chain management, risk mitigation, and strategic interventions are vital for sustaining the corn agro-industry. Recommendations include extended mentorship for farmers and the implementation of efficient production practices to ensure long-term sustainability and economic growth.

Author Biography

Erlina Nur Arifani, Food Technology Department, Telkom University

Food Technology Department

References

Aryal, J. P., Sapkota, T. B., Krupnik, T. J., Rahut, D. B., Jat, M. L., & Stirling, C. M. (2021). Factors affecting farmers’ use of organic and inorganic fertilizers in South Asia. Environmental Science and Pollution Research, 28(37), 51480–51496, https://doi.org/10.1007/s11356-021-13975-7.

B, Y. R., & Guntara, Y. (2023). Proceedings of the 2nd International Conference for Smart Agriculture, Food, and Environment (ICSAFE 2021). In Proceedings of the 2nd International Conference for Smart Agriculture, Food, and Environment (ICSAFE 2021). Atlantis Press International BV, https://doi.org/10.2991/978-94-6463-090-9.

Balkhi, B., Alshahrani, A., & Khan, A. (2022). Just-in-time approach in healthcare inventory management: Does it really work? Saudi Pharmaceutical Journal, 30(12), 1830–1835,

https://doi.org/10.1016/j.jsps.2022.10.013.

Barata, F. A., Febrianto, G. N., & Yasin, M. (2023). Supply Chain Management Strategy in Building a Competitive Advantage Through the Implementation of Logistic 4.0. Atlantis Press International BV, https://doi.org/10.2991/978-94-6463-008-4_47.

Erawati, B. T. R., Triguna, Y., Hipi, A., & Widiastuti, E. (2021). Adaptation of superior maize varieties high yield and biomass the availability of animal feed. IOP Conference Series: Earth and Environmental Science, 911(1), https://doi.org/10.1088/1755-1315/911/1/012032.

Fadhil, R., Maarif, M. S., Bantacut, T., Hermawan, A., & Syamsul Maarif, M. (2017). A Review on the Development Strategies of Agro-industrial Institutions in Indonesia. Article in Asian Journal of Applied Sciences, August, 2321–0893, https://doi.org/10.24203/ajas.v5i4.4877.

Hadi, D. K., Setiawan, A. P., Indrian, O. V., & Rosyid, E. F. (2023). Evaluation of Sustainability Supply Chain Performance in the Food Industry: A Case Study. Jurnal Teknik Industri, 24(2), 95–108, https://doi.org/10.22219/jtiumm.vol24.no2.95-108.

Hayami, A. (2015). Japan’s industrious revolution: Economic and social transformations in the early modern period. Springer.

Hutauruk, J., Tarigan, K., Siahaan, S., Sitohang, M., Zalukhu, L., & Sihombing, D. (2018). Hayami method application in the evaluation process of farmers who produce wet and dry corn seeds. IOP Conference Series: Earth and Environmental Science, 205(1), https://doi.org/10.1088/1755-1315/205/1/012009.

Ihdhinashta, I., Yunus, L., & Zani, M. (2023). Productivity and Income Analysis of Corn Farming in Lalodati Sub-District Puuwatu District Kendari City. Buletin Penelitian Sosial Ekonomi Pertanian Fakultas Pertanian Universitas Haluoleo, 25(1), 19–25, https://doi.org/10.37149/bpsosek.v25i1.154.

Jayadi, F., & Latief, R. (2023). Application of value chain analysis to corn ( Zea mays) commodities in Indonesia: Integrative review. IOP Conference Series: Earth and Environmental Science, 1230(1), https://doi.org/10.1088/1755-1315/1230/1/012003.

Jiao, Y., Chen, H. D., Han, H., & Chang, Y. (2022). Development and Utilization of Corn Processing byProducts: A Review. Foods, 11(22), https://doi.org/10.3390/foods11223709.

Latuconsina, Z. (2021). The Effect of Supply Chain Integration and Competitive Advantage on Supermarket Operational Performance in Ambon City. International Journal of Community Service & Engagement, 2(4), 138–146, https://doi.org/10.47747/ijcse.v2i4.543.

Mahendri, I. G. A. P., Saptati, R. A., & Adnyana, I. P. C. P. (2023). The Demand of Maize by Feed Mill in Indonesia During the Covid 19 Pandemic. 118–131, https://doi.org/10.2991/978-94-6463-116-6_16.

Munkvold, G. P., Arias, S., Taschl, I., & Gruber-Dorninger, C. (2018). Mycotoxins in corn: Occurrence, impacts, and management. Corn: Chemistry and Technology, 3rd Edition, 235–287, https://doi.org/10.1016/B978-0-12-811971-6.00009-7.

Musa, F. T. (2019). Farmers Decision Making in Selecting Input for Hybrid Corn Production. 127–130.

Ning, L., & Yao, D. (2023). The Impact of Digital Transformation on Supply Chain Capabilities and Supply Chain Competitive Performance. Sustainability (Switzerland), 15(13), 1–22,

https://doi.org/10.3390/su151310107.

Oktapia, S., & Meliza, J. (2023). Financial Analysis With Profit and Loss Approach in Micro, Small and Medium Enterprises (Msmes) Buah Buk Nur. Jurnal Ekonomi, 12(03), 471–477, https://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/view/1966%0Ahttps://ejournal.seaninstitute.or.id/index.php/Ekonomi/article/download/1966/1796.

Padapi, A., R., F., Wulandary, A., & Haryono, I. (2023). Modification of Hayami value-added analysis calculations in the processing of cayenne pepper. Anjoro: International Journal of Agriculture and Business, 4(2), 82–91, https://doi.org/10.31605/anjoro.v4i2.2399.

Putri, F. P. (2020). Peningkatan Efektivitas Dan Efisiensi Manajemen Rantai Pasok Agroindustri Buah: Tinjauan Literatur Dan Riset Selanjutnya. Jurnal Teknologi Industri Pertanian, 30(3), 338–354, https://doi.org/10.24961/j.tek.ind.pert.2020.30.3.338.

Quick, V., Errickson, L. B., Bastian, G. E., Chang, G., Davis, S., Capece, A., & Schoolman, E. D. (2022). Preserving farm freshness: Consumer preferences for local value-added products at urban farmers markets. Journal of Agriculture, Food Systems, and Community Development, 11(2), 113–134, https://doi.org/10.5304/jafscd.2022.112.004.

Rasyid, A. (2017). Value Chain Analysis of Corn Commodity Supply Chain. 9715–9726.

Rini, I. S. (2023). Export Import Development Analysis Of Strategic Agricultural Commodities. 4(1), 203–214.

Setiawan, B., Mustadjab, M. M., & Muhaimin, A. W. (2013). The Strategy of Business Process Integration and Competitive Advantage in a Supply Chain Collaboration with the Outcome Corn Farmers ’ Welfare in West Nusa Tenggara Province – Indonesia. May 2014.

Shekarian, E., Ijadi, B., & Zare, A. (2022). Sustainable Supply Chain Management: A Comprehensive Systematic Review of Industrial Practices. 1–30, https://doi.org/10.3390/su14137892.

Sibuea, F. A., Sibuea, M. B., Rahman, A., & Hartanto, A. (2023). Supply Chain Performance Analysis of Corn Processed Animal Feed. 34(2), 203–212, https://doi.org/10.21776/ub.habitat.2023.034.2.18.

Sulistyawati, H., Rahayu, P., Dewi, M., & Abid, M. (2021). Analysis of Marketing Margins and Farmers’ Shares on Corn in Sigi Regency, Central Sulawesi, Indonesia. 36(2), 355–364,

https://doi.org/10.20961/carakatani.v36i2.49409.

Susilowati, S. H., Ariningsih, E., Saliem, H. P., Roosganda, E., Adawiyah, C. R., & Muksin. (2021).

Opportunities and challenges to increase corn export from Gorontalo province of Indonesia. IOP Conference Series: Earth and Environmental Science, 672(1), https://doi.org/10.1088/1755-1315/672/1/012027.

Tangendjaja, B., Rachmawati, S., & Wina, E. (2016). Mycotoxin Contamination on Corn Used By Feed Mills in Indonesia. Indonesian Journal of Agricultural Science, 9(2), 68, https://doi.org/10.21082/ijas.v9n2.2008.p68-76.

Zahid, A., Noor, P., Jaafar, I., Mohezar, S., Muhammad, A., Mubarik, S., & Shahbaz, M. (2022). : the role of supply chain risks exposure. Operations Management Research, 307–325, https://doi.org/10.1007/s12063-021-00232-w.

Downloads

Published

2024-10-30

How to Cite

Nur Arifani, E., & Mahfudz, M. S. (2024). Corn Agroindustry Supply Chain Management in Indonesia: Increasing Added Value and Competitiveness through the Hayami Method. Spektrum Industri, 22(2), 128–140. https://doi.org/10.12928/si.v22i2.241

Issue

Section

Logistics and Supply Chain Management