Value Chain Analysis Of Small Dairy Industry (Case Study At “Susu Ketan Pak Yan” Café

Muhammad, Edgard Fawwaz and Ir. Hari Dwi Utami,, MS., M.Appl.Sc., Ph.D., IPM., ASEAN Eng., (2023) Value Chain Analysis Of Small Dairy Industry (Case Study At “Susu Ketan Pak Yan” Café. Sarjana thesis, Universitas Brawijaya.

Abstract

One of the driving factors for economic development in Indonesia are the growing MSMEs, MSMEs in Indonesia provides work for 97% of the workforce available. MSMEs can be categorized as Micro (maximum of 1 million IDR), Small (1 to 5 million IDR) and Medium (5 to 10 million IDR). In the area of East Java, Malang and its surrounding cities, there are many MSMEs that sell milk products, however milk is a perishable foodstuff which means it needs some form of processing in order to be able to last in storage, this processing of product is one part of an activity called Value Chain. Research was done at Susu Ketan Pak Yan Café, One of the many small enterprise operating at Malang which sells dairy products, this research is done in order to understand how the value chain are applied at a small enterprise and how does it affect said enterprise, the research of value chain was done because value chain is an important activity for a business that can bring a lot of improvement, so analysing the value chain would be beneficial for other MSMEs so that they can also improve, which indirectly will help the local economy. vii Research was done using a mixture of questionnaire and interview in order to obtain data needed for the research, the data obtained in this research is both qualitative in the form of answers of questionnaire and interview, and quantitative in the form of financial data of the café, after data is obtained it is supported using a quantitative method in order to be able to determine how value chain affects value added on products and how it affects profit margin of the café. Result of this research showed that The Value Chain of the café is made up of primary (Inbound Logistics, Operations, Outbound Logistics, Marketing and Sales, and Service) and secondary (Procurement, Technology, Human Resources, Infrastructure) activity, inside these activities are actors with different relationships, the relationship between the farmer and middleman is partnership because both parties needed each other in order to ensure a smooth running of business, the relationship between the middleman and the café is coordination because both business runs well when there is coordination with each other and separation is not preferred, the relationship between the café and e-commerce is coordination because e-commerce needs to coordinate with small businesses like this café, and this café needs e-commerce as a service in order to reach a wider market, the relationship of the café and its consumer is coordination so that the consumer can buy products from the café, and the relationship of the e-commerce with their consumer is coordination because consumer of e-commerce needs to coordinate with the e-commerce in order to get their desired products. The value chain directly effects the competitive advantage of the café which can be seen from the end milk product, the value chain activity at the café made it possible to mark up the price of the milk which results in the following percentage of value added for plain, chocolate and other flavours of milk (28.99%, 50.46%, and 41.88%), which is viii higher than the average percentage of 7.4% of value added for products in Indonesia. The amount of value added directly effects the profit margin of the milk products, which are 22.47%, 33.57% and 29.52%, which are higher than the net average profit margin of 7.71% for products. In conclusion, the value chain activity of Susu Ketan Pak Yan café, positively effects the business. The activities on the value chain adds value to the product which is shown by the percentage of value added, value added directly affected the profit margins of the milk products, the profit margin for the milk products can be considered good because it is higher than the net average product profit margin, this translates to a good competitive advantage of the business, as a sign of a business with good competitive advantage is its profitability.

English Abstract

Research was conducted at a café named Susu Ketan Pak Yan, located at Batu, Malang City, East Java Province. The study was proposed to analyse the value chain of MSMEs, understand the relationships of actors along the value chain and the effect of the value chain on value added, profit margin and the competitive advantage. Respondents were selected by purposive, snowball and accidental sampling, with criteria for purposive sampling being respondents that are part of the value chain of the café, these respondents include three groups, the café of Susu Ketan Pak Yan, the suppliers of the café and the consumer of milk products sold at the café. Data collection was held from 17th November to 11th of December of 2022. Questionnaire method was used in order to gather primary data, with secondary data obtained by a mixture of questionnaire and interview. Results showed that the value chain of the café is comprised of primary and supporting activities which add value to the product, along the value chain there are actors, which is dairy farmers, middleman, enterprise, shopeefood and consumer, with relations between dairy farmers and middleman being partnership, farmers and enterprise to be coordination, middleman and enterprise being coordination, enterprise and consumer being coordination, and relationship between e-commerce and consumer to be coordination. The competitive advantage of the business can be seen from the product, The Value Added for milk products at the café are 28.99% for plain milk, 50.46% for chocolate milk, and 41.88% for other flavours of milk which is higher than the 7.4% average value added percentage for products in Indonesia. This affects the profit margin for the products, which is also higher than the average profit margin for products of 7.71%, the profit margin is 22.47%, 33.57% and 29.52%, respectively.

Item Type: Thesis (Sarjana)
Identification Number: 052305
Uncontrolled Keywords: Advantage, Competitive, Margin, Profit, Relationship
Divisions: Fakultas Peternakan > Peternakan
Depositing User: Budi Wahyono Wahyono
Date Deposited: 17 Jan 2024 07:27
Last Modified: 17 Jan 2024 07:27
URI: http://repository.ub.ac.id/id/eprint/211574
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