Value added of kenaf fibre in natural fibre agroindustry supply chain network

Abstract

I Indonesia is among countries that produce fibre, which potentially becomes a flagship product domestically and internationally. Domestic demand for dried kenaf fibre reaches 30,000 tonnes/year, resulting in a gap between production and consumption. This study aims to analyse supply chain condition of kenaf fibre agroindustry, as well as analysing value added gained from an upstream supply chain of kenaf fibre agroindustry. Descriptive analytics method was employed to analyse supply chain condition. Whereas, value added was analysed using a number of methods: input output analysis, Hayami, modified Hayami, Rucker plan, and Tololiu’s value added. This study has demonstrated value added of kenaf fibre in supply chain network. Input output analysis by Central Bureau of Statistics (CBS) is the most appropriate method to determining the value added of kenaf fibre. It is IDR159,982,877 and IDR1,066,718,000 for woven fabric.