Sustainability of Rice Business in Flood-Prone Areas

Abstract

Rice issues are strategically important given that food sovereignty is one of the government’s strategic plans. The supply chain of rice is a complex system involving many interacting stakeholders. This study aims to analyse the rice supply chain in flood-prone areas, the level of rice business vulnerability to flooding, and the institutional competitiveness in the rice supply chain to improve food security. This study applied a mixed-method approach. The population of this research was business operators in the rice supply chain in the flood-prone areas of Klaten Regency, Indonesia. This study utilized primary data, which were collected using the method of direct interviews with business actors, supported by a list of questions and focus group discussions. The analytical tools used in this study were supply chain analysis, business vulnerability index, and stakeholder analysis. The results show that the rice supply chain consisted of farmers and rice fellers, collectors, rice mills, wholesalers, retailers and, finally, consumers. The vulnerability of companies in the rice supply chain was in the category of moderate. Stakeholders in the rice supply chain had diverse objectives, where the two most substantial goals were building reputation and earning income. Rice mill, Department of Agriculture, Food Security and Fisheries, and community are the main stakeholders in realizing food security because they have high interests and influence. The implication is that these three stakeholders must be the main actors in the development of regional food security.