Payung Layuk

By Agustinus N. Kairupan, Jantje G. Kindangen, Gabriel H. Joseph, Ronald T.P. Hutapea, Ibrahim Erik Malia, Paulus C. Paat, Derek Polakitan, August Polakitan, Jefny B. Markus Rawung, Meivie Lintang, Joula O.M. Sondakh, Payung Layuk, Olvie Grietjie Tandi, Herlina N. Salamba, Nelson H. Kario, Jonathan Anugrah Lase and Rindengan Barlina

The value of coconut production in North Sulawesi reaches almost 10% of Indonesia’s total coconut production, and more than 95% is managed by farmers. The main problem in coconut development is that the management of coconut cultivation is still traditional, and the quality of the products produced is still low, so that coconut commodities that are multipurpose relatively have no added value. The economic value of coconut is still very dependent on primary products, namely coconut seeds and copra. To increase farmers‘income, the solution that can be taken is to implement the value chain in integrated coconut farming by diversifying coconut products. This is a review chapter that aims to present the implementation of value chain analysis approach and formulate the strategic development of integrated coconut farming system on a rural scale in the North Sulawesi province. Implementation of the value chain by diversifying coconut commodities can provide added value. By managing an integrated coconut farm that produces 3–5 processed products, the economic value of coconut will increase by about 5–6 times. Several issues become obstacles in the development of the value chain, including the lack of farmer participation in the modern chain, weak market power and market access, weak contractual relationship strength, and weak agricultural sector development orientation in the provision of employment.

Part of the book: Agricultural Value Chains

By Amos Lukas, Agustinus N. Kairupan, Agung Hendriadi, Arief Arianto, Lamhot Parulian Manalu, Lanjar Sumarno, Joni Munarso, Mulyana Hadipernata, Huda M. Elmatsani, Bonnie O. Benyamin, Akhmad Junaidi, Mochammad Jusuf Djafar, Roosganda Elizabeth, Sahlan, Nasruddin, Puji Astuti, Subandrio, Heryoki Yohanes, Ermi E. Koeslulat, Eko Bhakti Susetyo, Suharto Ngudiwaluyo, Abdul Halik, Wahyu Purwanto, Guntur Haryanto, Sitti Ramlah, Noverina Sjafrina, Agus Budiyanto, Sari Intan Kailaku, Rienoviar, Alvi Yani, Nenie Yustiningsih, Himawan Adinegoro, Henky Henanto, Payung Layuk, Meivie Lintang, Gabriel H. Joseph, Derek Polakitan, Heri Wahyudianto, Joko Saptohadi, Kusumawati Dewi Budiarti, Taufik Hidayat, Josep Ginting, Amsal Rasyid and August Polakitan

The National Socioeconomic Survey (SUSENAS) conducted in Indonesia in September 2021 found that the average consumption of red chili per month was 0.15 kilograms (kg) per capita per month. The average consumption of fresh chili per month is 40.90 thousand tons, and the cumulative total reached 490.83 thousand tons in 2021. Uneven chili production across time and region makes prices fluctuate, which affects inflation by 0.01–0.07%. Another problem is the imbalance of supply and demand between time and region, which impacts farmers’ welfare. Setting planting time and location and improving distribution can solve these problems. The application of technology that can extend the life of fresh chilies for one month is a solution for chili distribution from farmers to areas with high demand. One-wave roasting and drying technology can extend chilies’ freshness for six months. By producing chilies that have a shelf life of more than three months, it is possible to store them in warehouses using the warehouse receipt system. The application of the warehouse receipt system to chili commodities is also an alternative to solving postharvest problems. The distribution and application of technology that can extend the life of chili can increase its economic value and make chili not a commodity that contributes to Indonesian inflation.

Part of the book: Agricultural Economics and Agri-Food Business