Abstract

Banyuwangi Regency become one of the cayenne pepper supplier to the national market, and Wongsorejo District is the largest cayenne pepper center. The amount of supply, continuity, quality, and price of cayenne pepper in Wongsorejo District shows different values ​​over time. This can hamper the performance of the cayenne pepper agribusiness supply chain. The purpose of this study was to map the flow of cayenne pepper supply chain, and to measure the performance of the cayenne pepper supply chain in Wongsorejo District. The research method uses descriptive-qualitative analysis to map the supply chain flow of cayenne pepper, and the Hayami added value analysis method to measure the performance of the cayenne pepper supply chain. The results showed that the supply chain of cayenne pepper in Wongsorejo District consisted of Agricultural Kiosks and the Government as suppliers; farmers as producers; collector traders, wholesalers, retailers and market traders as distributors; as well as consumers. Farmers get a value added of Rp. 5.845,83/kg, wholesaler of Rp. 12.849,48/kg, and retailers of Rp. 5.323,74/kg with a marketing margin of Rp. 18.750,83/kg. The supply chain of cayenne pepper in Wongsorejo District is classified as efficient, because the profits share is greater than the costs share.

Highlights

  • Cayenne pepper is a horticultural product that has high economic value and profitable business opportunities for cultivation

  • This study aimed to determine the flow of the cayenne pepper supply chain in Wongsorejo District, Banyuwangi Regency, and to measure the performance of the cayenne pepper supply chain in Wongsorejo District

  • The research object was determined by the purposive method, which was carried out in Wongsorejo District, which is in the northern part of Banyuwangi Regency, which is one of the cayenne pepper centers

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Summary

Introduction

Cayenne pepper is a horticultural product that has high economic value and profitable business opportunities for cultivation. Banyuwangi is a district in East Java, one of the largest cayenne pepper centers and a supplier to the national market needs, and Wongsorejo is the largest cayenne pepper district in Banyuwangi The supply, continuity, quality, and price of cayenne pepper in Wongsorejo District shows different values over time that can hamper the cayenne pepper agribusiness supply chain's performance in Wongsorejo District. Chain is a process and production activity starting from raw materials obtained from suppliers, the process of adding value that converts raw materials into finished goods, the process of storing goods inventory until the process of sending the finished goods to retailers and consumers (Pujawan and Mahendrawathi, 2017). The main purpose of the supply chain is to meet consumer needs and generate profits. The supply chain places more emphasis on all activities to meet consumer needs. There are flow and transformation of goods from raw materials to end consumers and accompanied by information and money flow

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