Roadmap for value chain analysis on broiler marketing in Makassar

Abstract

Makassar City is a potential area for the development of the broiler marketing value chain. The main challenge in developing the broiler value chain is high price fluctuations, both input and output. Value chain analysis on broiler marketing in Makassar aims to identify and analyze value chain channels, distribution of costs and benefits, as well as market characteristics. Analysis of the distribution of costs and benefits is carried out using the Hayami method. The results of the research show that there are irregular price fluctuations and imbalances in market structure at each level of the value chain. Each marketing chain of broiler chickens in Makassar City gains a disproportionate profit at each marketing level with the value creation contribution made and the risks borne by each marketing level. The total profits of large retailers are greater than those of brokers and small retailers, while the value creation activities and risks of large retailers are smaller than those of brokers. Unnatural fluctuations in the price of chicken meat are the impact of the government’s lack of role as a supervisor and regulator in the value chain activities of broiler marketing. The development of the broiler marketing value chain must focus on regulatory oversight, improving access to markets, information and capital to increase the competitiveness of business actors.