Value Chain Performance Research Articles

A TOPSIS-Based Model for Evaluating the Performance of the Intellectual Property Value Strategies of Science and Technology Enterprises

Intellectual property comes with risks such as value evaluation and externalities. It is an intangible asset involving a large investment and a long return period; however, it plays an important role in enhancing the competitiveness of enterprises. Some companies see intellectual property as being a long-term development strategy, which makes evaluating the performance of corporate intellectual property particularly important. The TOPSIS method is widely used to evaluate the pros and cons, as well as the performance of various programs. It can make full use of the data to accurately reflect the gaps in various programs. This paper uses the TOPSIS method to evaluate the performance of the intellectual property value strategy of six typical technology companies based on three dimensions: financial performance, external performance, and value chain performance. The study found that the value chain performance was the most important in the performance evaluation of the intellectual property value strategy, followed by the external performance, and then by the financial performance. There were also significant differences in the intellectual property value strategy of the six technology companies.

Value Chain Analysis of Eucalyptus Wood Products in the Blue Nile Highlands of Northwestern Ethiopia

Eucalyptus wood products contribute significantly to the income of smallholder growers in many parts of Ethiopia. This has incentivized smallholders to convert arable lands to Eucalyptus plantation. Given the limited attention and availability of empirical evidence, this study examined the Eucalyptus wood products value chain in terms of the actors engaged, the type and importance of channels, margins analysis and the overall value chain governance in the main Eucalyptus growing areas of the Blue Nile highlands of Northwestern Ethiopia in 2019/2020. Sources of data were randomly selected 388 Eucalyptus grower households and 166 Eucalyptus wood traders, complemented by an interview with key informants, group discussions and direct observations. The results reveal that a total of 2,051,114.75 m3 of Eucalyptus wood was produced in the study area and Eucalyptus plantations are expanding over crop lands at a rate of 102.35 ha a year on average. Many actors involved handle a large volume of wood in eight main channels with a high disparity in the shares of the margins. We found that Eucalyptus is the main source of cash earning, contributing about 45.76% to the total annual income of smallholder growers. Little policy attention, a lack of sectoral integration, missing infrastructure and an absence of modern wood processing factories are among the key challenges impeding the performance of the wood sector value chain. There are however existing opportunities for the development of the wood sector value chain such as favorable growing conditions and the spectacular growing demand for wood products. The study provides valuable insights about the wood sector value chain and actions towards ensuring sustainable value chains and the commercialization of the sector.

Framework for sustainability assessment of the value chain of flowering potted plants for the German market

The value chain of flowering potted plants (FPP) is associated with environmental, social and economic sustainability challenges. Indicator-based assessment methods can provide insights into sustainability performance of agricultural value chains. The FPP value chain is not comparable to other agricultural systems and therefore cannot be assessed with existing indicator-based tools. In this study, a framework was developed for sustainability assessment of the FPP value chain, from breeding to distribution. The development of the framework involved defining sustainability themes and subthemes based on the characterization of the value chain and the investigation of social, environmental and economic sustainability challenges. The generic sustainability assessment tools, Sustainability Assessment of Food and Agriculture Systems (SAFA) and Response-Inducing Sustainability Evaluation (RISE), provided the foundation for indicator selection and development. The current study emphasized the need for a system-specific view, especially in unique systems such as the FPP value chain, because generic assessment tools, such as SAFA and RISE, do not cover all sustainability subthemes. Most of the indicators missing from generic assessment tools were environmental indicators. Environmental assessment is closely related to value chain stages and product-specific processes, therefore indicators were allocated according to the value chain stages, breeding, production and distribution. Social sustainability themes are influenced by national and regional socio-economic conditions, such as government provision of healthcare and a social safety net. Therefore, indicators are allocated based on geographical regions and stakeholder groups. The economic subthemes are determined by industry structure and sector-specific conditions. The ornamental sector is characterized by low margins and high uncertainty, related to profitability and vulnerability. Despite the initial evaluation performed in the current study, in the next step, industry actors need to determine the feasibility of the indicators. The implementation of the framework developed in the current study will provide further insights into the value chain, which will guide actors in taking actions for performance improvement and provide guidance for policy-makers in setting sustainability targets.

Understanding the importance of fresh mango quality attributes from the perspective of Indonesian domestic consumers

The domestic market is the primary market of the Indonesian locally produced mango. There is a positive transition in the economy in this market, highlighting the increase of healthy lifestyles and changes in fresh agri-food product preferences, including fresh mango. Understanding how consumers in this community have a variation in preferences is essential to formulate the strategy to improve the performance of the Indonesian mango value chain. This study aims to identify quality attributes of fresh mango considered important by Indonesian domestic consumers. An online consumer survey involving 435 consumers was conducted in February 2021 in Jakarta, the biggest city in Indonesia. Based on the hierarchical cluster analysis, consumers are divided into four clusters based on their perception of the importance of mango quality attributes. The results highlight the differences between four clusters of respondents in giving importance to intrinsic and extrinsic mango quality attributes, where three out of four clusters concern with quality attributes importance. The differences in respondent characteristics in each cluster can represent how different consumers give importance to a mango quality attribute. It can be valuable information to improve mango value chain performance by understanding that most consumers are concerned about mango quality attributes’ importance.

Agri-Food Value Chain Performance during the COVID-19 Pandemic: An Empirical Study of Chu-mango Business Linkages in Dong Thap, Vietnam

This study aims to identify important factors that directly influence value chain performance (quality, responsiveness, flexibility and efficiency), which are explained by value chain integration (collaboration, commitment, coordination and joint decision-making) in the case of unexpected risk (the COVID-19 pandemic). This study contributes to maintaining the business linkage model among farmers – cooperatives – enterprises in the case of the COVID-19 pandemic and quickly recovering after the COVID-19 pandemic. Structural equation modelling (SEM) was used for data analysis following an iterative process based on theoretical and empirical analyses to obtain a structural model fit and test the research hypothesis. The findings indicate that the VCI positively influenced the VCP of Chu-mango business linkages at the 1% significance level through coordination (Beta = 0.345; construct reliability (CR) = 3.272), collaboration (Beta = 0.289; CR = 3.128), and joint decision-making (Beta = 0.324; CR = 3.245). This study provides empirical data on the relationship between VCI and VCP through the Chu -mango value chain in Dong Thap Province during the COVID-19 pandemic to raise awareness from stakeholders and encourage value chain thinking to improve performance. This result may pave the way for relevant policymakers to look for policies and strategies for better inclusiveness of stakeholders to show the importance of the VCI in improving the performance. Moreover, the study is an empirical case contributing to the agribusiness value chain in a developing country; it applies the agribusiness value chain of the tropical fruit domain and can be used for other agricultural products in other cases of unexpected risks.

Performance and Challenges in the Value Chain of the Anadara tuberculosa Bivalve Mollusk in Ecuador

The bivalve mollusk, Anadara tuberculosa (Black Shell, in Spanish Concha Prieta), is found on America’s Pacific coast, where it is harvested for subsistence and commercial markets. This paper aims to diagnose the performance of the black shell’s value chain. We also identify several challenges that must be addressed to improve the sustainability of the black shell fishery in Ecuador. The applied methodology was quantitative and descriptive. Its design was non-experimental, field, cross-sectional and ex post facto. The investigation was carried out from January to October 2019 in the Jambelí archipelago, El Oro province, Ecuador. The study population consisted of 565 individuals, shellfish collectors, shellfish associations managers, traders, and restaurants from the A. tuberculosa production chain. The sample size was estimated at 222 informants. The type of sampling used was probabilistic, random, stratified, and with proportional allocation, with an effective participation rate of those selected of approximately 80%. The questionnaire was applied personally through the structured survey method, in writing, in the work area, and with their consent. The performance of the value chain was diagnosed in the dimensions of productivity, competitiveness, and quality of life, reaching a 75.1% index, a result that indicates that the value chain has a moderate to good performance level. The competitiveness dimension reached the highest performance, followed by productivity. Quality of life was the dimension with the lowest performance. The value chain can be improved if the following challenges are met: (1) Restoration of the mangrove ecosystem, (2) Promotion of low-intensity shellfish aquaculture, (3) Good sanitary management and purification, (4) Promotion of value-focused ventures, (5) Strengthening of organizations and agreements for the use and custody of mangroves, and (6) Strengthening of institutions that contribute to the advancement of these challenges.

Infrastructure investments, regional trade agreements and agricultural market integration in Mozambique

Integration of agricultural markets has been a topic of great interest in Mozambique. Numerous studies have been conducted to assess both domestic and regional integration of maize markets in the country, though with some contradictory results. In this study domestic and regional market integration in Mozambique is assessed, focusing on maize markets as the main crop in the country. In contrast to previous work, this study takes into account new investments in infrastructure as well as changes in regional trade policies, using vector autoregressive (VAR) and vector error correction (VEC) models. The main findings suggest that maize markets in Mozambique are not efficiently integrated. This is particularly true between the deficit markets in the South and the surplus markets in the Centre and North of the country. At the regional level, market integration is also inefficient in many cases. Nonetheless, investments in infrastructure, such as the Zambezi River Bridge, linking the north to the rest of the country, as well as changes in trade policies over the years are shown to be significantly impacting to maize price changes, particularly in the north. The overall results suggest there is room for improvements in the maize value chain performance, particularly there is scope for farmers to engage more in trade and for reducing food loss. Action may include investments on training programs and incentives to shift farmers from the current subsistence farming to a more commercial farming system approach.

Global Value Chains in the Era of the COVID-19 Pandemic: Symptoms of Deglobalization

Purpose: The COVID-19 pandemic significantly affected the performance of global value chains (GVCs) due to lockdowns, restricted labor mobility, and consumers’ access to retail markets. Authors verify the research hypothesis as follows: recent disruptions in GVCs will induce reshoring and permanent reconfiguration of economic activity whereas enhancing deglobalization. Design/Methodology/Approach: Authors conducted a critical analysis of economic papers registered in the Web of Science and Scopus databases and ratio analysis based on the World Bank’s World Development Indicators and Reports. Findings: Authors argued that the reshoring of GVCs seems to lack solid, far-reaching economic premises, whereas policy recommendations in favor of enhancing GVCs’ stability and resilience proved to be significant. Practical Implications: Authors provided a set of policy recommendations regarding enhancing the stability and resilience of GVCs when facing shocks such as the COVID-19 pandemic to minimize negative impacts related to reshoring and reconfiguring economic activity, e.g., discouraging productivity and competitiveness across regions, industries, and enterprises. Originality/Value: The paper discusses current and vital issues associated with implications of the COVID-19 pandemic for GVCs activities, providing valuable policy recommendations for mitigating deglobalization trends.

Global Value Chains: Lead Firm Social/Relational Factors

While much of the literature on global value chains (GVC) has addressed strategy, structure, and governance, less is known regarding the relationship between lead firms and global value chain performance. Lead firms are influential, organizing, and strategic actors inside global value chains which drive the value addition and distribution by externalizing low value-added activities. The purpose of our paper is to explore the linkage between the lead firm's and GVC performance. We incorporate social capital theory, relational embeddedness, and global value chain governance to propose that lead firms may: (1) facilitate successful strategic alliances in global value chains through partner selection, (2) enable success over and beyond formal contracts by enabling embeddedness, and (3) reduce exchange costs and enable investment into new capabilities by facilitating knowledge transfer and learning by the mechanism of lead firm social capital. We also discuss global value chain performance measures in terms of the processes and activities which contribute to comparative location advantages or sustained competitive advantage of the value chain members. Our model contributes to the literature on global value chain governance by delineating the lead firm's resources through social capital theory.

The Globalization and Business Performance of Corporate Value Chain

Purpose - This paper empirically investigates the relationship between the corporate value chain and performance of non- financial businesses of South Korean stock market companies. It aims to explore the evidence that can be used to infer the relationship between value chains and corporate performance in the case of firms forming a value chain with other companies with the means of an equity investment or a special business relationship. Design/methodology - Non-financial corporations listed from 2011 to 2017 on the securities market of South Korea are analyzed. The data used for analysis are found for transactions with the related party by year for all the corporations of non-financial industries in the securities market. Multiple analysis attempts are conducted including the relationship between the value chain and productivity, corporate value, risk-adjusted corporate value, and mediation effects of productivity. The empirical model employs sixteen variables including the value chain index which identifies its impact on various aspects of business performances. Findings - The results of this study clearly supports the phenomenon that corporate productivity and value are enhanced when the corporation expands its value chain established with domestic related firms and overseas companies. Such a positive effect is statistically significant even after the possible risk factors that accompany the expansion of value chain were considered, and productivity plays the role as a medicating variable in the effect of the value chain on the corporation values. Originality/value - The findings of this study confirms that domestic companies’ expansion of their value chain centered on the related firms overseas that helped them in terms of the maximization of their productivity and corporate values. This study shows that Korean government’s policy on expanding the corporate GVC can enhance the productivity and value of firms. The expansion of value chain and its impact on business performance has not been explored thoroughly, although it is getting more and more important in the global trade operation.

Structural Equations Model of the Concha Prieta (Anadara tuberculosa) Agribusiness Management and Value Chain Performance in the Ecuadorian Mangroves

Mangroves are tropical and sub-tropical ecosystems that fulfill multiple beneficial functions for preserving life on the planet and the economic support of families living in their surroundings. Such is the case of the mangroves in Ecuador, in which the Concha Prieta (Anadara tuberculosa) is produced through the manual extraction of natural populations. However, this production system is threatened by deforestation and overexploitation. This research aims to formulate an agribusiness management model that impacts the A. tuberculosa's value chain performance levels using as validation tools the structural equations model. A non-experimental, cross-sectional, and ex-post-facto field research methodology was applied. The population under study was made up of the production chain participants, through a representative sample of 138 shellfish collectors, 12 managers of shellfish associations, 27 merchants, and 45 restaurants. The study was carried out in the Jambeli archipelago, in El Oro province, Ecuador, in 2019. Likewise, a questionnaire for each stage of the research was designed and validated through experts' judgment. The collected data were processed and analyzed through the structural equations model, using SPSS and AMOS software. The result obtained shows an interdependence relationship between both latent variables, with a covariance index of 0.45, which allows us to infer that as the processes integrated into Agribusiness Management are improved, higher levels are reached in the Performance components of the mollusk value chain and vice-versa. In particular, the exogenous variable Agribusiness Management is related to the endogenous variables mentioned below, with their respective factorial load: Evaluation (0.72); Process innovation (0.69); Internal factors of innovation (0.67); Planning (0.65); Execution (0.58) and External factors of innovation (0.38). Likewise, the exogenous variable Value Chain Performance is related to the endogenous variables mentioned below and their respective factorial load: Physical productivity (0.86); Economic productivity (0.83); Percentage indicator of net income (0.35); Operational profitability (0.21); Quality of life (-0.07) and Leadership in costs (-0.06). We conclude that the Agribusiness Management and Value Chain Performance constructs are interdependent and that the Physical Productivity and Evaluation indicators are the ones that have the most significant influence on this relationship. We recommend simulating these effects and relationships to propose improvement strategies to the said value chain.

Milk Market Performances and cofounding factors along Milk Value Chain in Pastoral Area: A Case of Borana Pastoralists, Borana Zone, Ethiopia

The study was conducted in Borana zone with the objectives understanding the milk market performance and challenges along the value chain. The primary data was collected from 123 households that drawn proportionally following multistage sampling based randomly selected households. Additionally, relevant information was collected from different sectors besides relevant literatures session. Similarly, Focused Group Discussions, key informant interview and visual observations were also undertaken to collect the primary data. In the course of data collection, different set of checklists were used for different group of actors to guide survey data collection, group discussions and key informant interview. The study found that input supply, natural calamity, marketing system, declining of livestock productivity, infrastructure and hygiene are among the major challenges along the dairy value chain. Above all, the dominance of value chain actors by pastoralists coupled with fragmented milk marketing system were the critical factors that stunted the milk market system in the study area. As a result, the performance of milk value chain is fragmented and distorted. Moreover, the supply of milk to the market become meager even though the milk selling practices has been flamed. Additionally, the dilution of pure drought resistant Borana cattle called “Qorti” is at its critical level of its extinction which challenge the milk production. Thus, it is important to enhance the milk marketing, encouraging milk supply and improving milk productivity.

Value Chain Support Activities and Performance of Sheep Production Projects in Nyandarua County, Kenya

As Kenya grapples with meat deficit and reduced livestock productivity in the ASALs, sheep production in the high rainfall areas offers an opportunity to bridge the gap. Sheep and goats have many advantages over large ruminants for most farmers, including lower capital investment requirement for flock establishment, lower feed consumptions and thus lower food-related costs, high fecundity and thus faster flock building, and are easier to manage. However, sheep production still faces a myriad of challenges that result in low productivity and ultimately low returns to farmers. Projects have been designed and implemented to improve sheep productivity but with little impact. The performance of such projects in terms of timeliness, cost, budget compliance, and quality has been questioned. This research aims to assess how various value chain support activities influence the performance of sheep production projects in Nyandarua County, Kenya. Specifically, the study sought to examine the influence of firm infrastructure assess the influence of human resource management, explore the influence of technology development, and evaluate the influence of procurement on the performance of sheep production projects in Nyandarua County, Kenya. Value chain support activities are the independent variable while the dependent variable is the performance of sheep production projects. The theories that support this study are Capability-Based View, Knowledge-Based View, Resource-based view, and Market-Based View. Descriptive design was used to conduct the study whose population was drawn from sheep production value chain stakeholders in the county, whose population is estimated at 596, 268. A sample size of 271 stakeholders were reached. Qualitative data was analyzed using content analysis while descriptive statistics were used to analyze quantitative data. Descriptive and inferential statistics were used in analyzing the data. Results were presented in form of tables, percentages, bar charts, and graphs. The study found that effective leadership styles has a positive influence on employees’ motivation and morale and contribute positively to organizational and sheep production projects performance. At the same time, human capital planning, acquisition, and development strategies have a more positive influence on organizational and sheep production projects performance than traditional strategies. Further, information technology contributes to the successful introduction of new products or services, improved operational processes and provides guidance to decision making on project implementation and thus affect positively project performance. Moreover, respondents approved that, procurement is a strategic function in that it not only contributes to costs reduction but also to the achievement of budgetary compliance in sheep production projects. It can, therefore, be concluded that firm infrastructure, human resource management, technological development, and procurement are all key success factors in the increased performance of sheep production projects. As part of the recommendation, players in the sheep production value chain should consider adequately investing in firm infrastructure, human resource management, technological development, and procurement. They should also be guided by effective leadership styles that will yield the desired outcome through a positive influence on employees' motivation and morale while exercising human capital planning, acquisition, and development strategies to enhance organizational performance.

Exploring sustainable netchains of smallholder cocoa farmers in Indonesia

This study aims to investigate the interplay between regional netchain and value chain performance of Indonesia's smallholder cocoa farmers. The investigation was based on in-depth interviews with 45 key informants from two major regional cocoa netchains in the economy. During the interviews, participatory rural assessment technique was employed in order to find out how regional netchain dimensions are interacted with value chain performance. The findings proved the roles of governance mechanism and social embedding into the value chain performance. Governance mechanism was regarded as the most important variable to secure price stability, hence leads to a viable and sustainable regional netchain of cocoa production. Furthermore, social embedding also played an important role through the influence of patron-client systems.

Analysis of the Rice Value Chain in East Timor—The Consumers’ Perspective

The consumer is an important factor to measure the performance of the rice agri-food value chain in East Timor. The purpose of this work is to identify the links in the rice chain, as well as to do the consumers’ characterization, along with their segments. The methodologies used to represent the functioning of consumer preferences are cluster analysis, applied the K-Mean method, qualitative nature, exploratory factor analysis (EFA) and regression analysis. It was constituted a sample of 240 rice consumers in the county of Dili, capital of East Timor, and the questionnaire was conducted in the presence of the researcher. As consumers become more aware and experience higher purchasing standards, failure to consider their concerns will affect the profit of value chain participants, many of whom will need to update their practices. The result of KMO statistic, 0.781, shows that the quality of the analysis is good and the null hypothesis of Bartlett’s test of sphericity was rejected. It was found the existence of two components, with the first having a greater weight of variables in relation to distance, transportation and availability, while the second component has a greater weight on variables related to quality, human benefit and healthy living. The first component was considered as Access and the second as Quality. Regarding the segmentation of consumers, we proceeded to create two distinct groups of rice consumers. Group I, composed of 171 individuals, and a Group II, with 69 individuals. Both groups considered rice to be the key food element, particularly important for the Timorese population.

Logistic Value Chain Analysis as an Approach to Modelling Tomato Supply Chain: Structural Market Evidence from Bharatpur Metropolitan City, Chitwan, Nepal

Logistics value chain is a complex process where demand uncertainty, price fluctuation, and supply management turn decisive for profitable returns. Tomato supply chain in Chitwan district of Nepal, due to disorganized marketing channel, was in the condition of disruption. Keeping this point in view, a study was undertaken to study about the approaches to understand how supply chain could be modified through improved value chain performance. A total of 180 respondents were interviewed, including farmers, traders, processors, distributors, and the consumers and the data was analyzed using both descriptive and analytical statistics. The results revealed that the B/C ratio and break-even price was 2.07 and NRs. 58235 (1 NRs. =0.0085 US$) respectively, indicating that tomato is a profitable enterprise. Value chain analysis was performed by following the components designed by Porter. The result further revealed that wholesalers were the most benefited actors along the chain. Farmers were observed to add the maximum value to the product. Several constraints were reported to weaken the marketing channel; price fluctuation, lack of marketing information, wholesaler’s dominancy over retailers, and faulty marketing system being the major problems. It is recommended that the government and concerned stakeholders need to focus on formulating the policies regarding marketing channel, determining floor and ceiling price for tomato, and encourage the actors to perform value-addition activities so that consumers can get the maximum utility.

Technical Limits in Circularity for Plastic Packages

The current Dutch recycling value chain for plastic packaging waste (PPW) has not reached its full circularity potential, as is apparent from two Circular Performance Indicators (CPIs): net packaging recycling rate and average polymer purity of the recycled plastics. The performance of the recycling value chain can be optimised at four stages: packaging design, collection, sorting, and recycling. This study explores the maximally achievable performance of a circular PPW recycling value chain, in case all stakeholders would implement the required radical improvement measures in a concerted action. The effects of the measures were modelled with material flow analysis. For such a utopic scenario, a net plastic packaging recycling rate of 72% can be attained and the produced recycled plastics will have an average polymeric purity of 97%. This is substantially more than the net packaging recycling rate of 37% for 2017 and will exceed the EU target of 50% for 2025. In such an ideal circular value chain more recycled plastics are produced for more demanding applications, such as food packaging, compared to the current recycling value chain. However, all stakeholders would need to implement drastic and coordinated changes, signifying unprecedented investments, to achieve this optimal circular PPW recycling value chain.

Value chain, productivity and trade performance in the dairy industry

PurposeThe purpose of this paper was to establish the contribution of value chain and productivity to trade performance in the dairy industry using evidence from Uganda.Design/methodology/approachThis study research design is cross-sectional and correlational. Data were collected through a questionnaire survey of 108 dairy farmers, processors and exporters. Data were analysed through correlation coefficients and linear regression using Statistical Package for Social Sciences.FindingsHierarchical regression results indicate that value chain and productivity contribute significantly to variances in trade performance of dairy products. Therefore, appropriate value chain processes and high levels of productivity lead to increased trade performance in the dairy industry.Research limitations/implicationsThis study focusses on trade performance of dairy products in Uganda. These research findings are useful for informing the deliberations of academicians, regulators and the business community. The results are applicable to all countries that carry out trade specifically in dairy products.Practical implicationsThe results are important for trade policy development in the dairy industry. For example, this study informs farmers, processors and exporters of dairy products how value chain activities in dairy farming can be re-aligned to achieve better quality and productivity for exportation. Similarly, the current study provides policy guidance for the relevant ministries such as ministry of trade and other players to come up with holistic policy actions aimed at improving the trade performance of dairy products in the country.Originality/valueTo the researchers' knowledge, this is the first study that provides an initial empirical evidence on the contribution of value chain and productivity on trade performance of dairy products in Uganda.

KINERJA RANTAI NILAI KEDELAI DI KABUPATEN GROBOGAN

This study aims to evaluate the performance of the soybean value chain in Grobogan Regency, Central Java. Different from other studies, this study portrayed the performance of the soybean value chain as a whole through a systems approach. The method used in this research is survey. This study used observation and structured interviews to farmers, marketing institutions, and other stakeholders to obtain primary data. A total of 65 soybean farmers from 6 districts in Grobogan Regency were selected by proportional random sampling to be used as a respondent. Determination of respondents for marketing to consumers using snowball sampling. This study uses descriptive-quantitative analysis methods with Value Chain Analysis (VCA), farm income, and marketing margins. The main activities in the soybean value chain consist of inbound logistics, operations, outbound logistics, marketing, and services. The logistical aspect performance is constrained by the incompatibility of the use of inputs with the standard. The performance aspect of operations is reflected by the productivity and income of farmers, amounting to 1,822 kg/ha and Rp. 1,728,320 / ha. Outgoing logistics related to farmers' dependence on collecting traders. The performance of marketing aspects is reflected in channel margins 1, 2, and 3, namely Rp. 750 / kg, Rp. 1,350 / kg, and Rp. 1,475 / kg. The most dominant service aspect is the role of RKG. Supporting performance aspects need to be improved by improving infrastructure, adopting technology, and improving farmer card implementation.

Design of Value Chains for Microalgal Biorefinery at Industrial Scale: Process Integration and Techno-Economic Analysis

The objective of this work was to identify industrial scenarios for the most promising microalgal biorefinery value chains on the basis of product selection, yields, and techno-economic performance, using biological characteristics of algae species. The development, value creation, and validation of several new processing routes with applications in food, aquafeeds and non-food products were particularly considered in this work. The techno-economic performance of various single product value chains (SP) and multiproduct value chains (MP) was evaluated for four industrial microalgal strains. Cost-revenue optimization was done for a 10 kton microalgal dry weight y–1 simulated biorefinery plant, using flow sheeting software for equipment sizing, mass and energy flow modeling, and subsequent techno-economic evaluation. Data on yield, material and energy consumption were based on pre- and pilot size production plants (TRL 5–6). Revenue optimization was accomplished by first analyzing the performance of single product value chains of the microalgal strains. Subsequently, a strategy was developed to exploit almost all biomass based on the most promising microalgal strains. The cultivation costs are most of the time the major costs of the value chains. For the single product value chains common process bottlenecks are low product yields, especially for soluble proteins where only a small fraction of the biomass is leading to economic value. The biorefinery costs (excluding cultivation) vary significantly for various species, due to the species-specific operating conditions as well as differences in product yields. For the evaluated single product value chain scenarios the costs for utilities and other inputs were in general the highest contributing expenses. A biorefinery approach significantly increases the biomass utilization potential to marketable products from 7–28% to more than 97%. Although the cascading approach increases the total production costs of the multiproduct value chains significantly, this is more than compensated by the increased overall biomass revenue. For all selected multiproduct chains there is a significant potential to become profitable at a relevant industrial scale of 10 kton per year. Additional insights in the product functionality, quality, and their market size are needed to narrow down the wide range of foreseen product revenues and resulting profits.