In this paper, the authors explore the effectiveness of the Manalagi mango supply chain in Indonesia using gap, price margin and relationship analyses. Price margin analysis revealed significant transportation costs and fruit sometimes reaching the wholesale market in inferior condition due to delays since harvesting because of transportation problems. The authors thus highlight that improvements in transportation infrastructure are important to reduce produce losses and increase value in the chains. Gap analysis showed several quality dimensions which could be explored to add more value in the supply chain in the form of quality, timeliness, food safety and labour standards in production and marketing. At the same time, relationship analysis highlighted the need for more effective communication between and within all chain participants. The authors note that barriers to achieving greater coordination include lack of mutual trust by chain participants and lack of an acceptable governance system with fair sharing of risk and rewards in the value chain. Achieving effective alignment among all participants in the value chain is an important factor in developing an effective supply chain.
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Commodity:
Publication Date:
2006
Author:
Herlambang T., Batt P.J. and McGregor M.J.
Publisher:
16th Annual IAMA Food and Agribusiness Forum, Symposium and Case Conference, 12-15 October 2006, Buenos Aires, Argentina
Keywords: