SUSTAINABLE WHITE PEPPER BUSINESS DEVELOPMENT STRATEGY BASED ON VALUE CHAIN ANALYSIS (STUDY CASE OF PT. CINQUER AGRO NUSANTARA)

• Main Author: Hana Puspitasari, Rahel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84728
• Institution: Institut Teknologi Bandung

Pepper is Indonesia's leading commodity, which has great potential to increase exports and added value for Indonesia. One type of pepper that has a high world market value is Muntok white pepper from the Bangka Belitung region. Currently, there is a decline in the value of revenue from Muntok white pepper caused by a decrease in production area, pest and disease attacks, as well as price fluctuations. These are commonly reported by producers as the basis for profit improvement strategies. There is another approach that has high power in strategizing the production of biological resources, but is relatively underutilized: it is called the value chain approach. Value chain analysis can identify bottlenecks and provide a basis for continuous improvement efforts. In this study, a value chain analysis of white pepper was conducted and a business development strategy was formulated. This research is a case study at PT.CAN as a white pepper exporter in Bangka Belitung. This research uses a descriptive qualitative approach with purposive sampling and snowball sampling methods. Value chain analysis was conducted using the global approach by Kaplinsky & Gereffi, as well as the GTZ approach. Assessment of supporting and constraining factors using the Internal Factor Evaluation (IFE) and External Factor Evaluation (EFE) approaches. Business development strategies were formulated using the SWOT method using the previously identified external and internal factors. Then, the best strategy was determined using the AHP method. Based on the results of the study, the white pepper value chain at PT CAN was mapped, with the entry point of the value chain through PT CAN as a 2nd and 3rd tier supplier. The value chain mapping illustrates the core process consisting of input sourcing, pepper cultivation, drying, collection, processing, distribution, and trading. The identification of key actors in the value chain, including input suppliers, farmers, collectors, champion farmers, PT CAN, and Verstegen illustrates the diverse relationship dynamics between these actors including captive, market, relational, and modular relationships. Value chain governance strategies including interfirm control, partnership, and external negotiation strengthen PT.CAN's position as the lead firm, which also implements sustainability practices in the white pepper value chain through economic, social, and environmental approaches. There are several opportunities to improve the white pepper value chain that can be done through process upgrading, product upgrading, functional upgrading, and intersectoral upgrading. Business development strategies that can be carried out are increasing pepper productivity, increasing promotion and brand awareness, increasing farmers' awareness of pepper cultivation, increasing cooperation with the government and other institutions, as well as product differentiation and diversification to ensure the sustainability of PT.CAN's business with assessment weights based on AHP in order are 0.314; 0 .238; 0.175; 0.138; and 0.136. This research is expected to be a business development recommendation for PT.CAN, a reference and source of data regarding value chain activities and business development strategies for white pepper in Bangka Belitung for those who need it, consideration for the government to support the development of white pepper business, and for investors in choosing business alternatives.