Value Chain Analysis for Chicken Layer Industry on Districts in Limapuluh Kota Regency, West Sumatera

Abstract

Eggs and chicken meat are poultry products, and their demand continuously increases yearly. Limapuluh Kota Regency is the home of the largest chicken layer industry in West Sumatra. This district's total population of chickens reaches as much as 10 million. This industry has made a significant contribution to the district’s economy. In contrast, the number of farmers decreased significantly due to the low profit margin, while the egg market price was comparatively high. Our study aimed to investigate the value chain in the poultry product industry, especially in West Sumatra, and how the added value is shared among the actors. We want to determine the distribution channels, the actors, value creation, and value distribution along the supply chain. We analyze the value chain of the chicken layer industry, identify activities performed by each actor, and value creation in each stage. Value added was analyzed using a value-added Hayami method, defining the value added as the difference between the output and input values. The results showed that the structure of the industry value chain of chicken layer farms in Limapuluh Kota Regency consists of poultry shops (PS), breeders, traders, wholesalers, small traders, and consumers. Comparative analysis showed that wholesalers gain the most significant value-added distribution at 29.11 %, the second the breeder at 29.05 %, then small traders at 20.07 %, and then poultry shops at 14.17 %, and the last is traders at 7.60 %.