This paper is a study of how to improve the organic product distribution system by applying value co-creation process in the distribution ecosystem by implementing knowledge management into all stakeholders in the distribution ecosystem. The paper will improve the existing organic food product distribution business model and the proposed business model with the implementation of knowledge management to accommodate the value co-creation among stakeholders. The reason why value co-creation among stakeholders needs to be improved is because currently organic food producers focus only on selling their products without having proper knowledge about their customers, while customers do not have enough awareness about organic food’s benefit. Because of this gap, this research tries to find the solution by improving the organic product distribution system through the application of value co-creation process. This paper will use qualitative research method as the main method to collect data and scientific analysis for achieving the goals which will be proposed and related to the research objectives as explained before.