Value chain and sustainability analysis of fresh-cut vegetable: A case study at SSS Co.

Abstract

Value Chain and Sustainability analysis are among the main issues in Indonesian fresh-cut vegetable business performance improvement. Since sustainable development involved various conflicting aspects, for a comprehensive result, the case study at SSS Co. has integrated Value Chain Analysis and Sustainability Analysis. This study aimed to assess green productivity, sustainability status, and formulate alternative strategies for the business performance improvement. The study used Green Productivity approach that consisted of three steps, i.e.competitive product selection, Value Chain Analysis by Green Value Stream Mapping, and Sustainability Analysis by Multidimensional Scaling Analysis. By combining the Pareto and Exponential Comparison Method, three competitive products were selected namely bell peppers, lettuce head, and broccoli. The Value Chain Analysis of those competitive products showed the environmental impact was less than the productivity level. Meanwhile, this study recommended that the sustainable dimensions were economy, environment, contract farming, and technology. The sustainability status of each dimension was very sustainable, enough sustainable, less sustainable for economic, environmental and contract farming, and technological dimension, respectively. The sustainability analysis of fresh-cut vegetable in aggregated multi dimensional scale showed that the fresh-cut vegetable agro-industry had “enough sustainable” status. By combining alternative strategies from Value Chain Analysis and Sustainability Analysis, the study concluded that the best scenario for the fresh-cut business improvement was moving the cultivation area to area near the fresh-cut agro-industry and implementing the sustainable contract farming with the farmers at the new area especially for the bell peppers, lettuce head, and broccoli products.