Improving Margins of the Indonesian Seaweed Supply Chain Upstream Players: The application of the Kaizen Approach

Abstract

The margin obtained at the upstream in the Indonesian commercial seaweed supply chain is generally small and makes the motivation for business development low. The research aimed to identify the opportunities to overcome these problems. The research conducted with the Kaizen analysis approach that seven upstream business nodes were chosen at three locations: two Gracilaria sp. farmers and one Gracilaria sp. trader in Brebes, one Eucheumatoid farmer and one intermediary trader in Serang, also two Eucheumatoid farmers in Sumenep. The results show some inefficiency in several loci in the business lines of intermediate farmers and traders. These include a gap on moisture content (Gracilaria of 2 % and Eucheumatoid of 4 %), productivity of Gracilaria pond 0.6 t ha–1 yr–1 and its by-product is 50 %, while the productivity of Eucheumatoids was 10 %. The quality of dry Gracilaria is one grade only. All result loss of potential margin. Root problem analysis found several external factors outside the Kaizen domain and other internal aspects can be corrected through intervention. The Kaizen analysis determined some simple interventions including improvement of cultivation embankments and extension of maintenance periods, use of monofilament net to dry seaweed, optimization of cultivation spacing, and use of moisture checker.

Comparison between Natural and Cabinet Drying on Weight Loss of Seaweed Euchuema cottonii Weber-van Bosse

“…Seaweed used is the Eucheuma cottonii variety because it is sought after and used for the food processing industry in NTB (Agus et al, 2021;Sunarpi, 2017). Also, of the 88 types of seaweed in NTB, E. cottonii is the most widely cultivated coastal community of NTB.…”

Seaweed Aquaculture in Indonesia Contributes to Social and Economic Aspects of Livelihoods and Community Wellbeing

“…In 2015, Indonesia and China together produced 69% of the world total of agar [8]. Most Gracilaria culture is undertaken in brackishwater ponds, usually in polyculture with milkfish (Chanos chanos), shrimp or other euryhaline species [42][43][44][45]. There is some culture of Gracilaria using long-line techniques in shallow coastal waters of Takalar Regency, South Sulawesi [46].…”

“…Gracilaria cultured in ponds produces agar of a lower gel strength than wild collected seaweed, and reportedly lower than maricultured seaweed, and thus brings prices toward the bottom range for food agar [40]. Harvested Gracilaria is dried on pond banks or adjacent roadways, and is then sold for processing into agar [11,43].…”

“…Our study of seaweed mariculture in Sumenep Regency, East Java, identified a number of supply-side problems, including inefficient culture methods and inadequate drying of the harvested seaweed, and noted that most could be resolved using relatively simple interventions [43]. However, resolving these constraints through the provision of effective training and support to seaweed farmers is challenging given the widespread distribution and remote locations of many seaweed farms.…”

Leverage Factors Affecting the Sustainability of Seaweed Agro-industry Development in Central Sulawesi, Indonesia

“…The decline in seaweed prices at the cultivator level has also been triggered by the decreasing volume of exports to China, Japan, Korea and several other importing countries and the relatively low prices set by importing countries (Saputro, Nuryartono, Arifin, & Zulbainarni, 2021). The low seaweed prices are due to the goods being sold in raw material and not semi or refined carrageenan (Purnomo et al, 2021). The low seaweed prices, especially Eucheuma cottonii, have caused a decrease in the motivation of cultivators and seaweed production.…”