Abstract
A value chain approach is increasingly used in the agrifood sector to help respond to the globalised food system. However, the agrifood value chain in many developing countries faces additional challenges to address any changes regarding the prevalence of smallholder players. Meanwhile, value chain studies are still limited in many developing countries, such as in Indonesia. Therefore, this paper aims to assess agrifood value chain in a developing country context. A qualitative methodology was applied in Indonesia’s cashew sector, specifically in the Sumenep Regency of Madura Island. A value chain mapping tool was used by focusing on governance (vertical-horizontal coordination and information flow) and value addition (safety, quality, and value orientation). The results showed that value chain mapping is a powerful tool to draw the complex interaction within the dynamics between different value chain actors. The exploration in Indonesia’s cashew sector showed that there is a gap in practices between actors in terms of governance and value addition. Therefore, it is recommended that smallholders’ governance participation and value adding activities be improved in order to minimize the gap of practises. The potential follow-up research is to address the maturity level of value chain practice to obtain a rigorous improvement route.
Highlights
The agrifood value chain has been increasingly studied within the context of developing countries to help respond to the changes in the global system, especially in terms of globalisation and high-value food standards
This study aimed to assess agrifood value chain in a developing country, help to identify the current practice in order to respond to the globalised food system
Value chain mapping helped to analyse the complex interactions between multi-actors
Summary
The agrifood value chain has been increasingly studied within the context of developing countries to help respond to the changes in the global system, especially in terms of globalisation and high-value food standards. Through the value chain lens, all agrifood actors have to cooperate in order to be able to respond to these changes. Value chain studies offer a comprehensive approach because they embrace the whole range of activities to carry out products or services by aiming at either the local, national, or global market [1]. The value chain highlights the importance of value creation along with the development of interrelationships between activities [2]. In many cases, agrifood value chains in developing countries have a challenging characteristic to respond to any changes.
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