Abstract
Value chain analysis is a strategic analytical tool for understanding activities that represent the value of a product (or service), meanwhile providing opportunities for identifying competitive advantage. In this value chain analysis, the research aims to 1) map the actors of silk commodity business ventures, 2) determine the activities of these business actors, and 3) calculate and analyze financial ratios. This study was conducted in the Wajo District as a site historically well known for silk production, and which is undergoing efforts at revival. The method used in this study is observation, interview, and modeling. Data analysis was conducted as a classical value chain analysis, emphasizing the calculations of financial ratios. The results show that the main actors and activities in commodities trading are farmers, local traders, weavers, and silk clothing stores. The largest marketing margin is approximately IDR. 300,000, which is found in silk clothing stores. On the other hand, the smallest marketing margins amounted to about IDR. 100,000, which were identified among local traders. Finally, the largest profit margins were identified among farmers valued at IDR. 196,000, while the smallest profit margins were among local traders amounting to IDR. 68,000. Overall, this case study highlights that forest enterprises, in this case of the silk industry in Wajo, can improve household incomes for forest farmers, while maintaining their overall bargaining position against the market.
Highlights
Natural silk takes place through a series of agro-industry activities, beginning with the mulberry plant, which consists of the feed for silkworm, requiring nursing and maintenance of silkworms (Bombyx mori, L), followed by the processing of cocoons into yarn, the weaving of cloth, and to the marketing of silk fabrics
Based on the research that has been conducted, it can be concluded as follows: (i) From the results of the study, it can be seen that the main actors in the silk business are farmers, local traders, weavers, and silk clothing stores
While the actors who support the main actors of the silk businesses are the local district agency (UTPD Natural Silk) and the Office of Industry. (ii) The main activities in the silk business are found among farmers, local traders, weavers and silk clothing stores
Summary
Natural silk takes place through a series of agro-industry activities, beginning with the mulberry plant, which consists of the feed for silkworm, requiring nursing and maintenance of silkworms (Bombyx mori, L), followed by the processing of cocoons into yarn (spinning yarn), the weaving of cloth, and to the marketing of silk fabrics. This business falls into the category of the home industry market, and can be a lucrative product for rural livelihoods.
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