RISK MANAGEMENT ON COCOA SUPPLY CHAIN IN MSME KAMPUNG COKLAT SENARA, NORTH LOMBOK

• Main Author: Nur Fatimah, Anisah
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/86641
• Institution: Institut Teknologi Bandung

West Nusa Tenggara is a province that produces superior quality cocoa beans in Indonesia. Senara Chocolate Village is the first and only MSME in Lombok that processes cocoa beans into semi-finished materials to produce processed chocolate products. Senara Chocolate Village is a collaborative effort between Bunga Mekar Farmers Group and Bunga Mekar Women Farmers Group located in Genggelang Village, Gangga District, North Lombok Regency. Fermentation of cocoa beans has been initiated to improve quality, flavor, aroma, and shelf life. However, the production has not been consistent in quantity and quality, because the harvest and fermentation results are highly influenced by climatic and environmental conditions. In addition, only a small percentage of farmers can perform fermentation techniques. This leads to the scarcity of fermented cocoa beans and hampers the flow of the supply chain. In addition to raw material procurement, social, economic and environmental issues may pose a risk of hindering the manufacturing process and product distribution. Demand that is disproportionate to supply needs can affect supply chain flow. Supply chain risk management can help analyze risks so as to prepare business actors to provide preventive action, overcome existing risks through corrective action, and protect the company from unwanted losses. This study aims to identify supply chain risk factors, assess and determine supply chain risk factors, and determine cocoa supply chain risk mitigation strategies in the SMEs of Senara Chocolate Village. The research was conducted through interviews, questionnaires, observation, and documentation. Supply chain analysis was conducted descriptively based on Supply Chain Operation References (SCOR). Data analysis was conducted according to risk management procedures, namely identifying risk factors through interviews with key informants, estimating and assessing risks through Failure Modes Effect Analysis (FMEA), and planning risk management through strategy formulation with Analytical Hierarchy Process (AHP). Respondents of the FMEA questionnaire consisted of 49 farmers determined by purposive sampling method, 8 employees in processing and manufacturing, and 3 outlet employees determined by census method. Respondents of the AHP questionnaire were experts from local government representatives, business actors, and academics. It was found that production activities in Senara Chocolate Village MSMEs in 2022 require 15,000 kg of dry cocoa beans in one year to produce 7,800 kg of cocoa powder, 1,920 kg of cocoa butter, and 600 kg of processed chocolate products such as chocolate bars and chocolate candies. Three primary actors in the cocoa supply chain in Senara Chocolate Village MSMEs were identified, namely cocoa farmers, processors and manufacturers, and distributors/retailers. 10 risk factors were identified for cocoa farmers, 9 risk factors for cocoa product manufacturers, and 7 risk factors for distributors/retailers. The priority risk factor at the cocoa farmer level is damage due to pests and diseases (RPN=440.48). The priority risk factor at the producer level is uncertain supply of raw materials (RPN=363.08). The priority risk factor at the distributor/retailer level is fluctuation in public buying interest (RPN=373.33). Cocoa farmers are prioritized actors in the supply chain (AHP weight=0.454). The priority strategy for supply chain risk management at the farm level is the Crop Intensification Program through Demonstration Plots (AHP weight=0.454). The priority strategy for supply chain risk management at the producer level is partnering with farmers from surrounding villages to procure additional raw materials (AHP weight=0.61). The priority strategy for supply chain risk management at the distributor/retailer level is to specialize products according to community preferences (AHP weight=0.631). Recommendations for Senara Chocolate Village MSMEs as business actors who get cocoa bean supplies from farmers in the Gangga area are to help distribute agricultural production facilities and provide technical guidance so as to maintain the quality and quantity of cocoa bean supply. SMEs of Senara Chocolate Village are advised to cooperate with the local government, especially the Plantation Office to conduct counseling for integrated pest and disease management and procurement of biological pesticides as an effort to intensify cocoa farming. To maintain the continuity and sustainability of processing and manufacturing, SMEs of Senara Chocolate Village are advised to implement a PIR (Inti-Plasma) partnership to strengthen the cooperative relationship between suppliers and producers. This partnership can be built with the mediation of the village government and agriculture office. To strengthen sales and distribution, Senara Chocolate Village MSMEs need to specialize in chocolate beverages and chocolate bars. Product specialization can be followed by product quality improvement, product education, and digital marketing to reach a wider target market.