Designing and Building a Risk Management Model for the Pork Supply Chain in North Sulawesi

Abstract

This study aims to present a comprehensive model for managing supply chain risks in the pork industry, comprising four primary components: (1) a risk identification (2) a risk assessment (3) a risk mitigation Employing the Snowball Sampling method, the research investigated 30 pig farms across North Minahasa, Bolaang Mongondow, and Minahasa districts, focusing on model identification and risk assessment within farmer and marketing institutions. Findings revealed that supply chain risks within pig farm products are primarily attributed to the perishable nature of the goods, persisting from farm activity processes through distribution channels to final traders. Risk assessment highlighted that farms face the highest level of risk compared to traditional market retailers and supermarkets, with breeders carrying the greatest risk among distributors and retailers. Consequently, identified risks significantly impact production quantity and pork quality, categorizing them as critically important risks. The decline in production adversely affects the income of farmers and distributors/retailers, underscoring the high risk associated with farm-level production activities. In light of these findings, enhancing farm-level performance requires government intervention to regulate the pork supply chain in North Sulawesi.