VALUE CHAIN ANALYSIS OF BROILER TO INCREASE COMPETITIVENESS (CASE STUDY AT PT. CHAROEN POKPHAND INDONESIA, TBK)
ABSTRACT: The objectives
of this research
are to (1)
map the value
chain in broiler
at PT. Charoen
Pokphand Indonesia, Tbk (CPI); (2) analyze the value chain governance in
broiler at CPI; (3) analyze the margin of marketing at broiler industry both on
farm or off farm; (3) analyze the gap between the expectation and the
performance of consumers
(farmers) upon using
products of CPI
and (4) recognize
factors influencing competitiveness in broiler industry; and (5) to formulate
strategy for value chain upgrading at
CPI in order
to increase competitiveness of
broiler. As revealed
by the value
chain analysis, the role of CPI in this value chain is highly
significant. All poultry inputs (DOC, feed, veterinary medicine, and poultry
equipments) are supplied by CPI. As for downstream sector, CPI processes
broiler into its derivatives. The type of value chain governance between feed
supplier, DOC, and veterinary medicine, poultry equipment, and poultry
derivates belongs to market value chain. Whereas the type of value chain governance
between carcass supplier and restaurant belongs to captive value chain. Based
on the margin of marketing analysis, the party that gains the lowest margin is
farmer and the party that receives the highest margin is the processor. In gap
analysis, the lowest attribute of competitiveness is the feed spending and the
highest attribute is the spending on veterinary medicine for two months.
Factors that influence the competitiveness in poultry industry are condition,
demand, industry competition, main industries and supporting industries, and
government’s role.
Keywords: Value
Chain, Competitiveness, Broiler,
PT. Charoen Pokphand
Indonesia, Tbk, Margin
of Marketing Analysis, Gap Analysis, SWOT Analysis
Author: Surip Prayugo, Arief Daryanto, Setiadi Djohar
Journal Code: jpmanajemengg120028

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