Asep Bulkini
School of Business Bogor Agricultural University,
Indonesia
E-mail: Asbulkini21@gmail.com
Arif Satria
Faculty of Human Ecology, Indonesia
Bogor Agricultural University, Indonesia
E-mail: arif.satria@gmail.com
Heti Mulyati
Faculty of Economics and Management, Indonesia
Bogor Agricultural University, Indonesia
E-mail: hmulyati@gmail.com
Submission: 07/02/2017
Revision: 24/02/2017
Accept: 27/07/2017
ABSTRACT
Catfish is one of the leading
freshwater commodities stipulated by the Ministry of
Marine Affairs and Fisheries (KKP)
of the Republic of Indonesia. The annual production target of catfish continues
to increase every year. This study aims to analyze the actors and the value chain map of
catfish, problems in the value chain of catfish, and
the strategies to
improve the value
chain. This research was conducted by survey method using questionnaire instrument. The
survey was done by
using purposive sampling technique to 23 catfish farmers, 7 catfish
wholesalers, 5 catfish retailers, and 5 catfish processors in Bogor Regency. In this study,
there are 4 channels
of the value chain
of catfish from the production to the
consumer. The four
actors who are involved
in the value chain, namely farmer, wholesaler, retailer, and processor. The
constraints along
the value chain consist of three aspects: pre-production, production, and
post-harvest. Pre-production problems include the quality of seeds, high price
of feed, and lack of capital. Problems on
production are the weather, fish mortality,
and social security.
Problems facing post-production cover price instability and lack of bargaining power of farmers. Proposed
up-grading strategies to improve the competitiveness are strengthening
partnership among farmers,strengthening partnerships between farmers
and other strategic partners (traders, and feed
companies).
Keywords: value
chain, catfish, farmers
1. INTRODUCTION
Aquaculture is one of the fishery
sub-sectors that has good
prospects in Indonesia. The growth of aquaculture is greater than the capture
fisheries. Aquaculture sector production has
increased more than 10-times from 1.2 million tons to 13.7 million tons from
2003 to 2013.
While the fishery only grew 0.24
times from 4.6 million tons to 5.8 million tons (MINISTRY OF MARINE
AFFAIRS AND FISHERIES, 2015). The growth of
aquaculture opens opportunities in the labor
market. The number of households of aquaculture
business according to the Agricultural Census 2013 reached more than 1.18
million households (CENTRAL BUREAU OF STATISTICS, 2016).
One of aquaculture
commodities which has a good prospect is catfish (Clarias sp.). Catfish is one of freshwater superior commodities in
addition to golden fish, nile tilapia, hypothalmus, and gouramy. Based on the
data of Ministry of Maritime Affairs and Fisheries (KKP), the national production of catfish from
2010-2014 continued to increase for more than 100 thousand tons per year.
The national production of catfish
in 2010 was 242 thousand tons and increased to 679 thousand tons in 2014. The
growth of national production of catfish from 2010-2014 was as much as 180.5% with continuous growth per year as much as
38.9%, 30.7%, 23.3%, and 24.9%. Ministry of Marine
Affairs and Fisheries
through the Directorate General of Aquaculture (DGA) will continue to improve
the production of catfish. In the Strategic Design Planning of DGA from 2015 to 2019, the production of catfish is
targeted to grow as much as 1.1 million tons in 2015 until become 1.8 million
tons in 2019. The growth in every year is targeted to be as much as 13.8% (DGA, 2015).
Bogor Regency is one of
the locations of 197 regencies/cities that are made to be Minapolitan (fisheries cluster) by Ministry of Mariine
Affairs and Fisheries. Bogor Regency is assigned three (3) main sub-districts as Minapolitan
areas: Parung, Gunung Sindur and Ciseeng sub-districts. Minapolitan area in Bogor sub-district has a land area of about
2,592 hectares. The main commodities which are developed in this area include
catfish, gouramy, and ornamental fish (DEPARTMENT OF ANIMAL LIVESTOCK AND
FISHERIES BOGOR REGENCY, 2015). The detailed data can be seen in this table.
Table
1.
Fishes production in Bogor (ton)
Commodity |
2010 |
2011 |
2012 |
2013 |
2014 |
Catfish |
24.884,52 |
33.922,46 |
47.733,14 |
64.047,79 |
79.640,83 |
Carp |
4.063,56 |
9.042,50 |
10.557,85 |
9.241,72 |
11.179,77 |
Tilapia |
2.073,37 |
6.133,40 |
6.585,95 |
6.832,72 |
8.095,41 |
Gouramy |
2.057,61 |
2.340,00 |
3.783,40 |
4.065,40 |
5.124,24 |
Source:
Department of Animal Livestock and Fisheries Bogor Regency (2015)
Catfish production in
Bogor tend to increases. In addition, the production was higher than other
commodities. During 2010-2014, the average increase in production of catfish in
Bogor Regency was approximately 30%. The price of catfish was fluctuates,
following the demand and supply conditions which are always changing. The price
of catfish in Warta Pasar Ikan (fish price information website) (2016) ranged
from IDR 15.000 - 20.000 in 2014-2016 for Bogor and the surrounding areas.
Although catfish has
good business prospect, further analysis is required related to the value chain
in this business. The indicative main problems of catfish farming is the high price of feed, which becomes the
largest component of production costs. Cost for feed on catfish farming can
reach 80% or more than the total cost of production (SUPRAPTO; SAMTAFSIR,
2013).
The value chain was first
introduced by Porter in the mid 1980’s as a concept to enhance competitiveness.
In this concept, Porter divided business activities into two types of activity,
namely primary and secondary. The primary activity is the core activities that
can directly influence profits. Meanwhile, secondary activity is to support the
main activity (PORTER, 1990).
Yusuf and Trondsen
(2013) and Mwaijande (2015) reveal that the analysis of fisheries value chain
can increase the competitiveness of farmers. Yusuf and Trondsen (2013) suggest
the minapolitan as a strtaegy to strengthen Indonesian fisherman
competitiveness. And Mwaijande (2015) suggest that strengthening partnership
between farmers and private sectors could be a strategy to upgrade the
fisheries value chain in Tanzania.
Trienekens (2011)
formulated the concept of value chain analysis for developing countries. There
are three components that can be identified in the analysis of the value chain
in developing countries. Those three components include constraints in the
value chain, and the elements of value chain.
2. RESEARCH METHOD
This research was
conducted by survey method using questionnaire instrument. The survey was
doneby using purposive sampling technique to 23 catfish farmers, 7 catfish
wholesalers, 5 catfish retailers, and 5 catfish processors in Bogor Regency.
Farmer respondents were selected in the production center in Parung, Gunung
Sindur, and Ciseeng Sub-districts. All those three districts are the areas
which are defined by the local government as the Minapolitan area.
The research was
limited in the enlargement process of fish until to the sale process.
Discussion is deepened in the on farm production. It is the most important part
of catfish value chain as a whole. The catfish value chain was mapped by
catfish flow from one actor to the other actors along the catfish supply chain.
The in-depht interview
to farmers was done to identified the main problems of catfish production.
Those problems became consideration to arrange the upgrading strategies to
increase farmers competitiveness.
The quantitative data
in this study were processed by using Microsoft Excel. The data which are used
to draw conclusions are the mean, mode, and percentages. The qualitative data
in discussion result with the actors are explained descriptively.
3. RESULT AND DISCUSSIONS
3.1.
Catfish
Value Chain
Based on the result of
survey to the respondents from all actors involved in the value chain of
catfish in Bogor Regency, the map of catfish value chain can be showed on Figure 1. There are five main processes along
catfish value chain. The five processes are production input (seed, feed, and
fish drugs), catfish production, wholesale, retail, and processing.
Figure
1: Catfish Value Chain in Bogor, Indonesia
Catfish value chain in
Bogor has four types of channel. The channels were classified by flow of
catfish from one actor to the other actors. The four of channels are explained
below.
1.
Farmers
– Wholesalers – Retailer – Processor – Final consumer
2.
Farmers
– Wholesalers – Retailer – Household (final consumer)
3. Farmers – Wholesalers – Processor –
Final consumer
4.
Farmers
– Household (final
consumer)
Channel 1 is the
longest channel which involves all of the existing actors. Final consumers in
this channel are the visitors in restaurants that provide a menu of processed
catfish. Chanel 2 involves three actors who produce live fish or fresh fish
that has not been processed. Final consumer of this channel is household. The
characteristic of Channel 3 is the farmer who sells fish produced directly to
retailers without the intermediary of wholesalers. While the characteristic of
Channel 3 is the fish farmer sell fish directly to the end consumer, which is
household.
All fish farmers use
Channel 1 as the main value chain channel. Channel 2, 3, and 4 only serve as
the alternative channel. All channels of catfish value chain which are formed
in Bogor Regency include in A-System of the value chain in developing countries
introduced by Ruben et. al. (2007). This system has several characteristics
such as many small farmers, large production with little added value, as well
as the main market which is the local market with the middle-low segments.
3.2.
Value
Chain Actors
From the survey, there
are four main actors of the catfish value chain in Bogor :farmers, wholesalers,
retailers, and processors. Farmers, wholesalers, and retailers sell catfish
which are alive or fresh. The processors sell catfish that have been processed
into food which are sold in street food. All catfish which are produced is for
the needs of the local market in Bogor and its surroundings, especially the
market in capital city of Jakarta.
Farmers are the most
important actors in the value chain of catfish. They produce catfish for
consumption with the size 6-10 fish/ kg. Catfish seeds which are stocked at the
beginning of have an average size 9-10 cm. The measurement standard which is
commonly used in catfish for consumption is the weight (kilograms).
While the measurement
standard of catfish seeds used is body length (cm). The average length of time
which is required by farmers to produce catfish in the size of consumption is
63 days. However, most respondents, or as much as 82.61% produce their fish for
60 days with the general stocking density of 100 fish/m3 with an average
mortality 9.7% (Table 2). Farmers buy catfish seeds with an average price IDR
241.5/fish. The average selling price received by farmers is in an amount of
IDR 16,8636/kg.
Table 2: The activities
of farmer of catfish
Variables |
mean |
median |
mode |
%
mode |
max |
min |
Time of production (day) |
63 |
60 |
60 |
82.6 |
90.0 |
60 |
Density (fishes/m2) |
113.9 |
100 |
100 |
82.6 |
178.6 |
90 |
Mortality rate (%) |
9.7 |
10 |
10 |
43.48 |
20 |
5 |
Seeds price (IDR) |
241.5 |
250 |
250 |
47.8 |
300 |
200 |
Catfish price (IDR) |
16,863.6 |
17,000 |
17,000 |
47.8 |
18,000 |
16,000 |
The
next actor is wholesaler. Wholesalers are traders who buy fish from farmers.
One respondent or 14.3% of the respondents buys catfish from farmers every day.
A total of 4 collectors or 57.1% buy catfish every 2-3 days. And the remaining
3 collectors or 28.6% make a purchase once a week.
However, based on the
information from farmers, as many as 73.9% of farmers sell catfish in the culture
pond, as much as 21.7% of fish farmers deliver fish to the buyer, and 4.4% do
both of them (Table 3). Nevertheless, all farmers sell their fish in the
culture pond. Fish delivery to wholesalers is only performed as an alternative.
The average selling price from wholesalers to the next actor is 21.000/ kg.
Table 3: Catfish buyer
and its transportation
Buyer Information |
Amount |
Percentage |
|
Catfish
buyer |
Wholesaler |
23 |
100 |
Retailer |
1 |
4.4 |
|
Household |
3 |
13 |
|
|
Other |
0 |
0 |
Distribution |
Pick up to
consumer |
5 |
21.7 |
Picked up at
pond |
17 |
73.9 |
|
Both |
1 |
4.4 |
The
next actor is retailer. Retailers are traders who get the fish from
wholesalers. Retailers sell fish in smaller amounts but they sell various kinds
of fish other than catfish, like tilapia, carp, and gouramy. Retailers have
closer place to the final consumers such as households or the next actor. The
average daily retail price is up to 38 kg. The average selling prices of
retailers to the final consumer or the next actor is IDR 25,000/kg.
The last actor involved
in the value chain of catfish is processor. Processor is meal sellers who sell
catfish as one meal menu. Processor is the only actor who does not produce
fresh catfish. So it can be said that processor is an actor who has a higher
value added per fish. But when it is viewed from the purchase amount of catfish
as the input is only 3-5 kg per day, or about 24-40 fish per day. The average
selling price of catfish that has been processed into meal menu is IDR
10,000/fish.
3.3.
Characteristics
of the Farmers
Table 4 shows that all
respondents of farmers are male. In this survey, there are no farmers are
female. Based on the characteristics of age, dominance of the age of farmers is
in the age interval of 31-40 years with a number of farmers as many as 12 people
or 52.2% of total respondents. After that, 30.4% or 7 people aged 41-50, and
the rest is at less than 30 and over 50 years, respectively by 8.7% or as much
as 2 people.
If it is viewed based
on the characteristics of education, as many as 10 farmers, or 8.7% have
completed their education up to senior high school, the last education of six
farmers or 26.1% is junior high school, the last education of as much as 5
farmers or 21.7% is elementary school, and the remaining 2 farmers or 8.7%
study up to university.
Table 4: Human
resources characteristic
Farmer Characteristics |
Percentage (%) |
|||
Sex |
Male |
23 |
100.0 |
|
|
Female |
0 |
- |
|
Age (years) |
≤30 |
2 |
8.7 |
|
|
31-40 |
12 |
52.2 |
|
|
41-50 |
7 |
30.4 |
|
|
>51 |
2 |
8.7 |
|
Education |
Elementary
School |
5 |
21.7 |
|
|
Junior High School |
6 |
26.1 |
|
|
Senior High School |
10 |
43.5 |
|
|
University |
2 |
8.7 |
|
Livelihood |
Catfish farmer |
21 |
91.3 |
|
|
Other |
2 |
8.7 |
|
Length time to be farmer (years) |
≤5 |
4 |
17.4 |
|
|
6-15 |
13 |
56.5 |
|
|
16-30 |
5 |
21.7 |
|
|
>30 |
1 |
4.3 |
|
Catfish workshop |
Yes |
14 |
60.9 |
|
|
No |
9 |
39.1 |
|
Among all farmer
respondents, there are 21 farmers or 91.1% make the catfish culture as the main
livelihood. While the rest of the farmers have other jobs such as rice farmers
and civil servants.
There is only one
person or 4.3% who has become a farmer for more than 30 years. A total of five
farmers or 21.7% have been doing catfish farming during 16-30 years. As many as
13 people or 56.5% had undergone catfish farming during 6-15 years. And the
remaining 4 people or 56.5% had been doing catfish farming for less than or
equal to 5 years.
The entire farmers who
are surveyed do not have the educational background which is related to fish
farming, both catfish and other fish. Knowledge of fish farming is obtained
from direct experience in the field. However, as many as 14 farmers or 60.9%
had attended a short training on catfish farming which is organized by the
government and feed company.
3.4.
Problems
of the Value Chain
There are some problems
along the catfish value chain. The constraints can be grouped into three
aspects: pre-production, production, and post-production constraints.
The main problem in the
pre-production occurs in the procurement of raw material input, especially
seeds and feed inputs. The main problem on the seeds is its quality, seeds
supply sustainability and the uniformity of size. The quality of seeds obtained
by the farmers does not have a basic standard. Catfish seeds are obtained from
the farmers who do not have the same production standards.
The fluctuation of the quality of catfish can cause inconsistent
enlargement of the production process. Thus, it allows farmers to produce
catfish with inconsistent productivity as well.
Another issue on the
pre-production is feed input. The problems mentioned on feed by farmers
respectively are the more expensive feed prices, capital to purchase and
unstable feed quality. The price of pellets produced by factory is considered
expensive by the farmers. This is certainly a burden for the farmers because
the cost of feed could reach 80% of all components of production costs (SUPRAPTO;
SAMTAFSIR, 2013).
In overcoming the high price of feed, farmers use two ways, namely by
combining the factory feed with alternative feed in the form of the waste of
chicken eggs. However, the use of alternative feed in excessive amounts can
decrease quality of the environment and threat sustainability of aquaculture.
The second way is by delaying payments. For farmers who have greater capital
capacity, they do direct cooperation
with the feed company. This cooperation makes the farmers have a term of
payment for 1 month. While farmers with middle to lower production scale, they
anticipate it by making cooperation with the “nucleus farmers” who have access
to direct cooperation with the feed company.
The last problem on
pre-production is the access to capital. Respondents stated that they lack of
capital to expand they business scale. There are only 30.4% famers have an
access to the loan from banks. Meanwhile, farmers who have limitation access to
banking overcome it by borrowing money from their relatives or to the
nucleusfarmers if the yare incorporated in the core nucleus-plasma cooperation.
This shortage of capital is felt mainly by farmers who have less than 15 units
of pound.
The constraints during
production faced by farmers are the weather, diseases, and security. Weather
problems could be an obstacle which affect the second constraint. High rainfall
becomes a threat to farmers. On a rainy day, the appetite of catfish tend to be
reduced so that the need for nutrition is not met properly. In that condition,
catfish become more susceptible to disease. Social security constraints is a
social problem which is faced by farmers. Theft of fish and pound inventory
become a threat to farmers.
While the post-harvest
constraints commonly faced by farmers is the unstable price. Farmer generally
becomes the price taker, not as price maker. This is possible because the
bargaining position of farmers is lower than the buyers (wholesalers or
retailers). The bargaining position of traders (retailers and wholesalers) is
higher because they have access to the market directly.
3.5.
Upgrading
the Value Chain
A good value chain in
agribusiness can increase the competitiveness of farmers (YUSUF; TRONDSEN, 2013;
MWAIJANDE, 2015; SUPRIATNA et. al. 2014). Porter (2009) provides
recommendations to the government of Indonesia that one of the biggest
potentials of Indonesia is a marine and fishery sector. One strategy to improve
the competitiveness of the fishery sector is to use the cluster approach.
Cluster in the aquaculture sector is known as minapolitan.
Yusuf and Trondsen
(2013) adds that one of the factors of success of minapolitan approach in improving
the competitiveness of fishery sector is a good value chain.
Minapolitan or fishery
cluster in Bogor Regency has become a strength for catfish farmers. This
cluster development should be continued by strengthening the partnerships among
farmers and strengthening the partnerships between farmers and other strategic
partners, such as wholesalers and retailers as well as the feed companies.
There are two partnerships among farmers that can be selected by the farmers to
have competitiveness, which is a partnership in the form of groups or
cooperatives and partnerships in the form of nucleus-plasma.
Partnership of
groups/cooperatives can improve the bargaining position of farmers, and allow
it to become a price taker in the entire value chain. Farmers collectively can
access the market by ensuring the supply sustainability of catfish production. For all this time, small farmers
who stand alone have weak bargaining power and find a difficulty to access the
market because they cannot supply the fish in a sustainable manner.
While the advantage of
nucleus-plasma partnership is to reduce the capital expense during the
production. Nucleus farmer will provide a capital guarantee of production
inputs, such as catfish seeds and feed to the plasma. This capital can be paid
by the plasma when the cycle has ended and fish has been sold. Nucleus farmers
have high bargaining power to feed company for a large scale production.
Nucleus farmers can make payment of feed to the company within 30 days. This
allows farmers to rotate the capital for other production costs.
4. CONCLUSION
There are four main
actors involved in the value chain of catfish in Bogor Regency. Those fourt
actors include farmers, wholesalers, retailers, and processors. The constraint
on the value chain of catfish in the Bogor Regency is divided into 3 parts. The
problem of pre-productioninclude the quality of catfish seeds, high price of
feed, and the lack of capital. Production problems include the weather, fish
mortality, and social security.
As well as
post-production problems that include price instability and the bargaining
power of farmers against traders that is still weak. The main strategy to
improve the competitiveness of farmers in the entire value chain is to
strengthen the partnership among farmers and the partnerships between farmers
and strategic partners, such as traders and feed company. This partnership can
increase the bargaining power of farmers and can reduce the cost of production
through feed and catfish seeds loans.
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