Efficiency of Layer’s Supply Chains in Indonesia

Abstract

Research on the efficiency of egg’s supply chain focused on various markets is expected to provide input to maintain the existence of small scale layers’ farming. This study aim is to analyze the efficiency of supply chain of small-scale layers’ farming. This research is conducted in April-October 2017 in Blitar Regency, in East Java; Sidrap Regency, in South Sulawesi; and Kabupaten 50 Kota, in Payakumbuh City and Pariaman Regency, in West Sumatra. The number of respondents used are 139 people consisting of officers in related institutions, poultry shop entrepreneurs, traders, breeders association farmers, supermarket managers, hotels, restaurants and caterings. The data collected is analyzed using the Data Envelopment Analysis (DEA). The results concludes that traders naturally seek efficient supply chains so that their business can be endured. Factors that influence supply chain efficiency are share farmer, profit and marketing cost ratio, and number of actors involved. The higher the farmer share, and the profit-to-cost ratio, and the fewer marketing channel in a supply chain, the more efficient the supply chain system. Large capital farmers are advised to be able to shorten the supply chain by marketing directly to consumers such as hotels, supermarkets, restaurants, hospitals and caterings. The egg supply chain can also utilize the Indonesian Farmer Shop (TTI) developed by the Ministry of Agriculture so that it can increase farmer’s income and stabilize prices.