Analysis of supply chain and added value of rice in west Lombok regency

Abstract

West Lombok Regency is one of rice production centers in West Nusa Tenggara. Rice millings operate in the Regency to process raw rice into rice (hulled rice), and become a central point in the rice agro-industry and institution that connects actors in the supply chain, starting from raw rice to producing hulled rice as the main product. The aim of this research is to: (1) analyze supply chain mechanisms related to product flows, information flows and financial flows on rice; (2) analyze added value received by actors in the rice supply chain network; and (3) analyze marketing efficiency of rice in West Lombok Regency. This research uses descriptive methods. Data collection was carried out using surveys to the research locations of the districts of Narmada, Lingsar and Gerung, which all are the centers of rice in West Lombok Regency. There were 30 rice farmer respondents and some institutions or individuals involved in the flow of rice from farmers to end consumers. Data were analyzed by applying the analyses of descriptive, added value, and marketing efficiency. The results showed that in the rice supply chain there have been flows of product, finance, and information, amongst marketing actors or institutions. The added value and profit resulting from processing unhulled rice to hulled rice were IDR 6,100/kg and IDR 5,850/kg, respectively. It was also found that in West Lombok Regency there are three patterns of marketing channels and all of the channels operated efficiently.