Rice Supply Chain Research Articles

Effect of application of supply chain management practices on certified organic rice supply chain performance

This research is proposed to determine the impact of management on supply chain performance. A description analysis on each indicator’s constituent variables also carried out. Data obtained from farmer groups (Poktan), combined farmer groups (Gapoktan), organic rice farmer associations, distributors and retailers consisting of modern markets, supermarkets, and minimarkets were selected using snowball sampling method. A questionnaire was utilized to determine the perceptions of respondents. The limitation of the study was the involvement of only one area of certified organic rice producer, and several distributors and retailers who engaged in the organic sector following the supply chain flow. The analysis using partial least squares structural equation modelling obtained that the integration of suppliers has a positive significance on efficiency, responsiveness, flexibility, quality, and economic satisfaction, but it does not affect social satisfaction. Internal integration only significantly influences to quality. The integration of customer has a positive importance on efficiency, responsiveness, flexibility, and social satisfaction, but it does not affect the quality and economic satisfaction. Meanwhile, information sharing has a positive effect on economic and social satisfaction, but it does not affect efficiency, responsiveness, flexibility, and quality. Supplier integration was found to be a significant factor in supply chain management practices in influencing supply chains performance. This study authenticity is the use of measurement constructs that are adapted to conditions in the field to produce new empirical data about the relationship of management practices with supply chain performance in the certified organic rice products.

Marketing Efficiency In Rice Commodity Supply Chain Management In Kalukku District, West Sulawesi Province

The market performance measure that is often used is efficiency in marketing. Marketing efficiency can be improved by applying the concept of supply chain management in agriculture. This study aims to analyze the efficiency of marketing in rice supply chain management. The research was conducted in August 2018 in Kalukku District, Mamuju Regency. The sampling method was carried out by purposive sampling, obtained as many as 8 farmers with the criteria of owner or confinement farmers who have farming experience and several farmers who serve as heads and members of farmer groups, where information on farmers, it is known that the flow of products that involve other marketing agencies is also used. respondents in this study were determined by snowball sampling. Data analysis used is marketing efficiency analysis. The results showed that there were 3 rice marketing channels in Kalukku District, Mamuju Regency. The marketing channel has been efficient, where in supply chain channel 1 with an efficiency level of 12.9%, on marketing channel 2 with an efficiency level of 12.2%, and marketing channel 3 with an efficiency level of 13.2%.

The Integration of Fuzzy-ISM, Fuzzy-AHP, and Fuzzy-MICMAC Approach under Trapezoid Fuzzy Linguistic to Analyze Enablers of The Logistics Outsourcing Relationship: Mekong Delta, Vietnam Rice Supply Chain Context

The purpose of this paper is to analyze the effects of the factors and determine the importance of these factors to the LO relationship with the desire to improve the efficiency in logistics activities of the supply chain. An integrated approach including Fuzzy Interpretation Structure Model (FISM), Fuzzy Cross-Impact Matrix Multiplication Applied to Classification (FMICMAC) analysis, Fuzzy Analytic Hierarchy Process (FAHP) is structured in reaching this purpose. Specifically, the impact of factors on the LO relationship will be determined through the FISM-FMICMAC method, then FAHP will use the results from this FISM-FMICMAC analysis step to perform the determination of the level of importance of contributing factors to the LO relationship. The fuzzy number formats of this paper are all in trapezoidal format. To evaluate the proposed framework, a typical example of logistics activity in the Mekong Delta Rice Supply Chain (SuC) was selected. The results have shown the impact level of 14 factors on the LO relationship under 4 clusters (Dependent, Linkage, Independent Autonomous). Finally, only the 10 most outstanding of the 14 factors were used to conduct FAHP analysis to find the global weightages which contribute to the LO relationship by each factor.

Critical supply chains for mitigating PM2.5 emission-related mortalities in India

Air pollution and its health-related effects are a major concern globally, and many people die from air pollution-related diseases each year. This study employed a structural path analysis combined with a health impact inventory database analysis to estimate the number of consumption-based PM2.5 emission-related deaths attributed to India’s power supply sector. We identified critical supply chain paths for direct (production) electricity use and indirect (consumption) use. We also considered both domestic and foreign final demand and its effect on PM2.5 emission-related deaths. Several conclusions could be drawn from our results. First, the effect of indirect electricity usage on PM2.5 emission-related deaths is approximately four times larger than that for direct usage. Second, a large percentage of pollution-related deaths can be attributed to India’s domestic final demand usage; however, electricity usage in the intermediate and final demand sectors is inextricably linked. Third, foreign final demand sectors from the Middle East, the USA, and China contribute indirectly toward PM2.5 emission-related deaths, specifically in the rice export supply chain. The results show that the Indian government should implement urgent measures to curb electricity use in rice supply chains in order to reduce the number of PM2.5 emission-related deaths.

Developing a Fairtrade rice supply chain from Myanmar: achievements, challenges, lessons

Traidcraft Exchange and its sister business Traidcraft plc have been developing Fair Trade supply chains for over three decades. As core certified ‘Fairtrade' products have become mainstream in UK markets since the late 1990s, Traidcraft Exchange has focused energies on bringing innovative supply chains and small-producer organisations into the wider Fair Trade system. The case study presented here is of rice sourced from smallholder farmers in Myanmar's Ayeyarwady region: the world's first Fairtrade product from Myanmar. The case study illustrates how Traidcraft Exchange's explicit focus on small producers and innovating new supply chains from ‘left behind' communities can work in practice. It explains challenges faced at both the supplier and market end. It seeks to show how broader programmatic aims to strengthen small producer skills and organisational capacity to engage with trade on fairer terms can mitigate risks associated with export trade to the challenging UK market.

Impact of Covid-19 Pandemic On Local Rice Supply Chain FlowPatterns In Kapuas Regency, Central Kalimantan, Indonesia

The fact that the pandemic condition due to Covid-19 that broke out in early 2020 has caught the attention of various elements of society. The visible impact is not only on public health, but also influences the distribution and availability of various food supplies, especially local rice in the study area. The purpose of this study was to examine the flow patterns of the local rice supply chain during the Covid-19 pandemic. Data analysis using supply chain analysis of Supply Chain management (SCM). The results of the analysis show that at the farmer / producer level it does not significantly affect farming activities, only 29.77 percent of farmers stated that there was an influence on farming activities. The impact of Covid-19 mainly affects the level of intermediary institutions in the rice distribution process. Long product (material) flow patterns by business actors need to be shortened by a short distribution route. Another effect is the inaccuracy of product arrival time due to delays in the inspection process for products brought to the research location. The impact of Covid-19 is mainly felt by distributors / wholesalers who flow products to other areas, mainly due to the increase in additional costs related to Covid-19 requirements. The solution to integrate all SCM elements through an information system can facilitate the flow pattern of local rice in Kapuas District, by intensifying the management of information related to production at the producer level, as well as controlling rice supplies at the level of intermediary institutions.

Fate of trichothecenes B in rice and parboiling process as a mitigation strategy

This study was designed to assess these two critical safety issues in the rice supply chain. First, DON and its acetylated derivatives, 3-ADON and 15-ADON, occurrence was evaluated in different commercial rice subgroups. Subsequently, DON migration dynamics during parboiling was investigated in rice samples from lowland and upland cultivars. These two main goals were designed to increase understanding of contamination risk in rice by trichothecenes and, subsequently, to enable the proposal of a mitigation strategy. The VA-MSPD trichothecenes determination method proved to be reliable and efficient to evaluate rice contamination, with recoveries between 73.4 and 117.4%. Approximately 43.3% of the commercial samples, obtained randomly from the local market, tested positive for DON and/or 15-ADON with contamination level below the LOQ (0.50 μg.kg−1). Whole rice and whole parboiled rice subgroups showed highest incidence, 66.7% and 83.3%, respectively. During parboiling migration studies, milder conditions in gelatinization step had decreased DON migration into the starchy endosperm. With this condition, the mycotoxin remained in the bran in both cultivars (12.0 and 13.4%). Therefore, demonstrating that it is possible to mitigate mycotoxins in polished rice products with minor alterations to current supply chain processes and enhancing security of this staple food.

Collaboration quality assessment in the sustainable rice supply chain by using an integrated model of QFD-FANP-DEA: A case study of the rice industry in Malang

Collaboration is one of the critical issues in achieving a sustainable supply chain among suppliers and BULOG, the Indonesian Logistics bureau operated by the government that balances economic, social, and environmental aspects. Factors of collaboration behaviour such as commitment, trust, coordination, stability, and continuous improvement are taken into account to support collaboration activities. This study aims to analyse the efficiency score of BULOG and its suppliers and determine the strategy to enhance collaboration quality. This study applied the integrated method of Quality Function Deployment (QFD), Fuzzy Analytical Network Process (FANP), and Data Envelopment Analysis (DEA). The QFD and FANP are to figure out the priority level of the collaboration behaviour factors. Then, DEA serves to calculate the collaboration efficiency score. The result shows that the most important behaviour factor in supporting the collaboration is the coordination, followed by continuous improvement, commitment, stability, and trust. Furthermore, among the nine stakeholders, two stakeholders are inefficient, with the efficiency score of 88.8% and 87.5%. Several strategies that can be applied to achieve the highest efficiency score (100%) are by increasing the sales level and changing the transportation method. Therefore, the economic and the environmental aspects which have a low level can be improved.

Collaborative Strategy for the Supply Chain of Rice: A Case Study on Demak and Sukoharjo Regency, Central Java, Indonesia

The problems associated with rice production in Indonesia appear very complicated, due to poor management of the sufficient national rice stock and various unfavorable public policies. Recently, government’s directives on rice importation instigated polemics from several interests, as a result of inappropriate decisions on general rice production, with possible yearly increment. Therefore, there is need to embrace strategy development to balance demand and supply. The purpose of this study was to analyze the rice supply chain in Demak and Sukoharjo, Central Java Province, in an effort to provide effective and collaborative distribution policies at individual levels. In addition, in-depth interviews were conducted for 98 respondents in a bid to acquire relevant and current information for the conceptual framework development. Furthermore, sampling methodologies, termed purposive and snowballing, were applied, followed by the preparation of interview guidelines. The results showed the farmers obtained the lowest revenue margin among other tiers, while several technical challenges were also identified. Consequently, the activities of middlemen with excessive dominant roles in market price determination, were overemphasized, leading to an inefficient supply chain. Meanwhile, government’s position through the Indonesia Logistics Bureau (BULOG) is assumed to be vulnerable in the control of direct supply from farmers or collectors. Based on this study, intense comprehension of rice supply chain was achieved, with further provision of collaborative strategies towards promoting the balance of demand and supply.

Identification of Distribution Channels in the Supply Chain of Rice, Chili, Onion, Beef and Chicken Meat at Depok City

Supply chain which is a system that involves the production, delivery, storage, distribution and sales processes of products to meet demand. Distribution channels which are important in the supply chain, which are concerned with moving goods from one place to another effectively and efficiently. The purpose of this study was to identify the distribution channels of the supply chain for rice, chilies, shallots, beef and chicken in Depok City. The analytical method used is qualitative. Data collection techniques by means of observation, interviews and documentation. The results showed the distribution channel processes of rice, chilies, shallots, beef and chicken meat that occurred in Depok Cityhave to go through several hands including farmers, producers, distributors (traders) until it reaches consumers. Farmers in Depok City should cut the existing distribution channels by selling their crops directly to traders without going through collectors.

The effectiveness of rice flow in large-scale rice refineries in Bireuen Regency

Effective rice supply chains are needed to continuously increase activity in customer service including fulfilment of demand, punctuality in delivery, and rate of return of goods by consumers for certain reasons (return). The purpose of this study was to determine the effectiveness of rice supply chains in large-scale rice refineries in Bireuen Regency. The descriptive qualitative method was used to identify effectiveness of rice flow using the Food Supply Chain Networking (FSCN) framework. The results showed that the characteristics of the rice procurement process at large-scale rice refineries will be more efficient in producing and distributing rice if each party within the supply chain is a member of the procurement process, including farmers, collectors, wholesalers, and retailers. These parties should rely on a formal partnership contract so that the financial flow can be completed quickly to reduce late payments which are detrimental to the large- scale rice refineries in Bireuen Regency.

Designing a bi-objective rice supply chain considering environmental impacts under uncertainty

Rice is a strategic commodity in the food chain for the people and governments. It is a fundamental food for many societies. Moreover, producing rice can provide a reliable source of revenue if proper supply chain management is coordinated by farmer countries. The rice supply chain includes diverse elements such as farms, rice mills, distribution centers, and markets. This study examines the important factors that play a significant role in the rice supply chain. A bi-objective mathematical model is formulated to minimize total costs as an economic goal and minimize soil erosion and its destruction due to the consumed water for rice cultivation as an environmental goal. To verify the proposed model, a case study of the rice supply chain with limited producer farms has been investigated. Moreover, some parameters such as annual precipitation in production areas along with other factors are presented under several scenarios. Furthermore, an extended goal programming approach and stochastic programming are utilized to solve the proposed model. Finally, the sensitivity analyses of the important parameters have been performed.

A blockchain-based rice supply chain system

With the continuous development of blockchain technology, “blockchain+” has gradually evolved into a new form of social and economic development. Blockchain technology can be applied to the rice supply chain management field. Consider integrating the encryption algorithm, timestamp technology, consensus algorithm, and sidechain technology of blockchain with the rice supply chain, analliance chainbetween companies upstream and downstream of the supply chain, including producers, suppliers, and vendors can be built to create a safe and efficient supply chain information management. This information system uses the unique encryption technology of the blockchain and its unforgeable features of irreversibility and decentralization to help the supply chain break the current bottleneck, solve the problem of information security in the rice supply chain and realize the practical traceability of rice. At the same time, the involvement of the blockchain will also open up new opportunities for supply chain finance and bring about fundamental changes in supply chain management.

The role of relationship quality and loyalty between rice farmers and food companies in supply chain

Relationship quality plays a key role in maintaining the connection among parties in a supply chain. Relationship quality promotes loyalty of the supply chain’s factors. This study applies structural equation modeling (SEM) to point out factors affecting the relationship quality and loyalty between farmers and food companies in the rice supply chain. The research data were collected by stratified sampling with a sample size of 232 farmers associating with food companies in the rice supply chain in the Mekong Delta. The four impacting factors that the study has found out include trust, perceived benefit, support policy, and payment terms. Most importantly, the study has demonstrated that relationship quality has a positive correlation with loyalty among parties in the regional rice supply chain.

The implications of the COVID-19 pandemic on rice market performance in Java, Indonesia

Applying the multivariate cointegration tests with daily prices during the period August 15, 2019, to August 11, 2020 (250 data), this paper examines whether prices in the rice deficit market (Jakarta) are co-integrated with prices in surplus markets (Semarang and Surabaya). Research data is the average daily price in traditional markets in Jakarta, Semarang, and Surabaya. The main focus is on the effect of implementing various programs and policies relating to controlling the spread of COVID-19 to the integration of the rice market in Java. On March 02, 2020, the first two COVID-19 cases in Indonesia were confirmed as a dummy variable that we use regarding controlling borders between regions and restricting the movement of goods. The cointegration tests find that the domestic rice prices of Jakarta - Semarang and Jakarta - Surabaya are integrated both in short-run and long-run periods. In the short term, programs and policies relating to controlling the spread of COVID-19 do not affect the integration of Java’s rice market. One reason is that during the pandemic, the rice supply chain’s performance was still protected by the government to maintain the stability of rice supply for the citizens.

Designing Food Supply Chain Strategy During COVID-19 Pandemic Using an Integrated Agent-Based Modelling and Robust Optimization

Coronavirus disease (COVID-19) has spread for over a year and affected many aspects, including food supply chain. One of the impacts of COVID-19 in food supply chain is the reduction of food production capacity. It is necessary to develop the optimum food supply chain strategy by determining the optimum food hub location and food network to maintain the food security which robust against disruptions and uncertainties. In this study, Robust Optimization (RO) is applied to handle the uncertainties. Nevertheless, the actual uncertain data might be hard to be collected or even unavailable at the moment. Therefore, an innovative framework is proposed to integrate RO with Agent-Based Modelling (ABM). ABM is used to simulate the upstream actor of food supply chain and predict the uncertain food production capacity, which later handled by RO. Particularly, this study focused on rice supply chain. Result shows that the framework is able to handle the uncertain rice supply chain problem, in which the actual uncertain data might be unavailable, and give the robust optimum food hub location and food network. The food hub location and food network are obtained by solving the Robust Counterpart (RC) model with respect to the uncertainty set obtained from the ABM simulation result.Funding Information: This research is funded by The Indonesian Ministry of Research and Technology/National Research and Innova tion Agency through contract number 1827/UN6.3.1/LT/2020 entitled “Coordination Model of Food Supply Chain Management in COVID-19 Pandemic“Declaration of Interests: The authors declare no conflict of interest.

Supply Chain Performance of Organic Red Rice through PT Lingkar Organik Indonesia in Special Region of Yogyakarta Indonesia

This study aimed to describe the relationship structure of organic red rice supply chain and measure the supply chain performance through PT Lingkar Organik Indonesia. The number of respondents in this study was 97 people, consisting of 30 farmers, one trader, one director of PT Lingkar Organik Indonesia, four retailers, one industrial consumer, and 60 household consumers. This study employed a descriptive analysis. The results showed that the organic red rice supply chain’s relationship structure consisted of nine actors forming five chains and having different activities. The actors consisted of farmers, trader, PT Lingkar Organik Indonesia, Pamella Supermarkets, Maga Swalayan, Progo Store, Mirota, Panti Rapih Hospital, and household consumers. In terms of continuity flow, the supply chain performance of organic red rice comprising the product flow, money flow, and information flow as a whole, has not been going well. It was because there were still quite smooth flows, including product flow and information flow. The best performance was the chain formed from farmers, trader, PT Lingkar Organik Indonesia, and Panti Rapih Hospital.

A system dynamics approach for analyzing supply chain industry: Evidence from rice industry

The rice industry policy must be comprehensive with a scope of policy from upstream to downstream. In other words, it must cover all supply chains of the rice industry consisting of five levels, such as, the level of farmers who process rice, grain traders, rice traders, rice traders in production areas and rice traders in urban markets.The purposes of this research are (1) to identify and model the current supply chain system of the rice industry; (2) analyze the simulation of the rice industry supply chain system policy; and (3) recommend rice industry policies which provide incentives for all rice industry supply chain actors. The research method used is the case study method. The aim is to understand a phenomenon in the rice industry supply chain system in depth in West Java Province – Indonesia. The results show that the rice industry supply chain system model is a closed cycle consisting of material flow feedback in the form of grain, rice, money and information flow in the form of demand that occurs in the interaction of actors from farmers, grain traders, rice milling units (RMU), rice traders in production centers to rice traders in urban wholesale markets in Bandung and Jakarta. Every businessman in the rice industry has the same goal, which is to maximize the profits. Thus, it can potentially lead to a conflict of interest which is manifested in the desire of every businessman to sell as much as they produce at the highest possible price but this will not happen because of the limited resources they have, such as capital and the market demand they receive. The strategy of increasing production is often carried out by the government at this time which it cannot be done partially without considering other rice industry supply chain instruments. The impacts of this partial policies are farmers, collectors, rice traders and rice mills gain unstable profits and the benefits received are lower than before the production strategy and policy were implemented. The recommended policy strategy is the rice industry supply chain system should be able to guarantee the availability of sufficient rice and capable of guaranting the welfare of farmers with a policy that integrates rice farming and agro-industry production strategies, financing strategies and accessible to all levels of actors in the rice industry supply chain, human resource development strategies and rice business risk management strategies, simultaneously. The integrated policy strategy needs to be carried out since rice supply chain management is a coordinating system of material flow in the form of grain, rice, money, facilities and information flow in the form of orders or requests, knowledge and innovation.

Organic Rice Supply Chain Strategy in Sawangan Organic Farmers Association, Magelang District, Indonesia

Indonesia is one of the countries that excel at organic agriculture. Exports to international markets are increasing from year to year. Organic agriculture is one of the farms in Indonesia that produces organic rice. Supply Chain Management (SCM) represents management science in agricultural activities that involve management, processing, distribution, marketing to products that consumers want. The research objectives: (1) identify supply chain actors and descriptive analysis of environmental conditions, (2) identify internal and external factors, (3) formulate strategies with a matrix of Strengths, Weaknesses, Opportunities, and Threats (SWOT), This study was carried out using a qualitative exploratory research approach, data were collected by interviewing ten people involved in the distribution of organic rice and secondary data. The results showed that the organic rice supply chain actors in Sawangan, Magelang District were farmers, Gapoktan, Gatos, and consumers. Based on the strategic formulation, five alternative strategies were obtained which consist of: (1) increasing the quality, quantity, and continuity of production, (2) expanding markets and facilitating distribution channels, (3) strengthening financial aspects, (4) conducting organic rice market research and planning. development, (5) facilitation and support from the government.

Differentiating Pakistani long-grain rice grown inside and outside the accepted Basmati Himalayan geographical region using a ‘one-class’ multi-element chemometric model

“Basmati” is the name used for a class of rice comprising a few defined varieties grown in several defined regions of the Indo-Gangetic Plains in India and Pakistan. Due to its highly valued qualities Basmati rice is sold at a premium price, which makes it susceptible to fraud due to economically motivated adulteration. Unscrupulous producers or distributors can increase profits by mislabeling rice grown outside the recognized Basmati region and passing it off as Basmati rice. Therefore, the authentication of the geographical origin of Basmati rice is of high importance for the entire Basmati rice supply chain and is becoming increasingly so due to pending applications for Geographical Indication (GI) status with the European Commission. Although elemental analysis has been applied previously for the authentication of rice, only a few studies have assessed the application of elemental analysis for the authentication of the geographical origin of Basmati rice. This study demonstrates the high potential of the combination of elemental analysis and data-driven soft independent modelling by class analogy (DD-SIMCA) for the differentiation of Pakistani rice grown inside and outside the recognized Basmati growing region, thus permitting the ‘geographical component’ of Basmati rice authenticity to be verified. The achieved sensitivity and specificity of the one class DD-SIMCA model is 100% and 98%, respectively.