Abstract
The margin obtained at the upstream in the Indonesian commercial seaweed supply chain is generally small and makes the motivation for business development low. The research aimed to identify the opportunities to overcome these problems. The research conducted with the Kaizen analysis approach that seven upstream business nodes were chosen at three locations: two Gracilaria sp. farmers and one Gracilaria sp. trader in Brebes, one Eucheumatoid farmer and one intermediary trader in Serang, also two Eucheumatoid farmers in Sumenep. The results show some inefficiency in several loci in the business lines of intermediate farmers and traders. These include a gap on moisture content (Gracilaria of 2 % and Eucheumatoid of 4 %), productivity of Gracilaria pond 0.6 t ha–1 yr–1 and its by-product is 50 %, while the productivity of Eucheumatoids was 10 %. The quality of dry Gracilaria is one grade only. All result loss of potential margin. Root problem analysis found several external factors outside the Kaizen domain and other internal aspects can be corrected through intervention. The Kaizen analysis determined some simple interventions including improvement of cultivation embankments and extension of maintenance periods, use of monofilament net to dry seaweed, optimization of cultivation spacing, and use of moisture checker.
Highlights
Indonesia has an excellent opportunity to create massive revenue through seaweed hydrocolloid trades
The results show there are inefficiencies in a number of loci in the business lines of intermediate farmers and traders include a gap on moisture content (2 % in Gracilaria and 4 % in Eucheumatoid), pond productivity (0.6 t ha–1 yr–1 of Gracilaria), productivity of by-products (50 % of Gracilaria), the productivity (10 % of Eucheumatoids)
The quality of dry Gracilaria is just in the same grade, all of the inefficiencies cause a loss of potential profit
Summary
Indonesia has an excellent opportunity to create massive revenue through seaweed hydrocolloid trades. Hydrocolloid markets tend to increase over time continuously and carrageenan is the most necessary type of product. Hydrocolloid trade appeared firstly in 2009, reaching USD 1.01 × 109, an increase of almost 60 % over the previous decade. The trade value of agar increased by 35 % while carrageenan increased by 81 %. The increase in international demand for hydrocolloid resulted in significant needs of raw materials.
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