To service high-value international markets, many agrifood value chains in developing countries are required to transform to meet the strict quality and safety standards. This transformation process has become further complicated by increased sustainability expectations. The key players in these countries, typically smallholders, are struggling to meet this new sustainability value focus. Economic drivers pervade in this context, whilst the lack of integration often decouples producers from the end market. To address these challenges, this paper develops a framework to enable sustainable agrifood value chain transformation in developing countries. A narrative review was used to analyse the major enablers and barriers in sustainable agrifood value chain transformation specifically in developing countries. The framework novelty lies in the synthesis and prioritisation of transformations actions, by integrating three central dimensions: sustainability, governance, and value addition. The incorporation of sustainability drivers into value chain governance provides a holistic approach that balances profit maximization with social and environmental impacts, thus enabling smallholders in developing countries to access higher value markets. The framework can assist these value chain actors in identifying their transformation trajectory and guide policymakers, along with the public sector, in prioritising their intervention to overcome barriers.
Purpose: Agrifood value chains in developing countries are transforming into higher value markets which require sustainable practices, with smallholders playing a critical role. However, smallholders are a heterogeneous group which may have discrepancies in outcomes to meet sustainability standards. This paper aims to empirically investigate smallholders' heterogeneity towards sustainable value chain practice in developing countries.Design/methodology/approach: Eight key enabling factors of sustainable value chain transformation were used to explore smallholders' typology, then profiled, based on their socio-economic status and current practices. A quantitative method was applied in Indonesia's cashew sector with 159 respondents from the primary producer area on Madura Island. A combination of descriptive analysis, cluster analysis, cross-tab analysis and one-way ANOVA analysis was used in this study.Findings: Four types of groups were identified, each with distinct characteristics and arranged in priority order as follows: accelerator, progressor, inattentive and conservative groups. Interventions can be implemented on per clusters basis or based on potential similarities among clusters, depending on priority. It is noted that the pursuit of sustainable value chain practices by smallholders is not necessarily associated with high socio-economic status, as those with low socio-economic status may have a stronger inclination towards them.Practical implications: The paper enhances awareness of practitioners and policymakers regarding smallholders' heterogeneity in sustainable value chain practice. It enables more effective and focused interventions to support smallholders who require assistance in sustainable production and value-adding activities. Different smallholders' characteristics call for different assistance/intervention. Practitioners can recognise smallholders' characteristics that are more compatible with higher value markets and sustainability requirements to better integrate their practices. Policymakers must carefully develop short-term and long-term interventions based on the activities prioritised by particular traits to “hit the right button” for smallholders' practice development.Originality/value: This study investigates the typology of smallholders towards sustainable value chain practices by using eight enabling factors and profiling them based on their socio-economic condition and current practices. Additionally, this study shifts the focus of typology exploration away from the traditional lens of farm sustainability to a larger perspective which encompasses sustainable value chain activities.
Indonesia merupakan negara penghasil rumput laut dengan mayoritas produk dijual dalam bentuk raw material/bahan baku ke pasar global. Guna mendukung pengembangan sektor rumput laut dalam negeri, pengembangan UMKM menjadi salah satu kunci. Namun, kinerja UMKM seringkali terkendala dalam aktivitas manajemen supply chain. Penelitian ini bertujuan untuk mengetahui dan mengevaluasi kinerja UMKM Bunga Seroja yang merupakan pionir bisnis di bidang rumput laut di wilayah Kabupaten Sumenep. Kabupaten Sumenep merupakan sentral penghasil rumput laut di Provinsi Jawa Timur di Indonesia. Metode pendekatan yang digunakan adalah kualitatif dan kuantitatif, dengan memakai kerangka Supply Chain operation Reference (SCOR) yang meliputi plan, source, make, deliver dan return. Analisa kuantitatif menggunakan matrik SCOR dan dianalisa dengan menggunakan Deskriptif kuantitatif dan Central Tendency Analysis. Hasil analisis menunjukkan bahwa UMKM Bunga Seroja memiliki rata-rata performa kinerja kategori sedang (3,4). Aktivitas kegiatan produksi sampai pengiriman produk masih perlu pengembangan terutama pada aspek deliver, return, dan make. Selain itu, pemanfaatan teknologi berupa digitalisasi komunikasi dengan pelanggan perlu diperkenalkan kepada UMKM untuk memperbaiki kinerja.
A value chain approach is increasingly used in the agrifood sector to help respond to the globalised food system. However, the agrifood value chain in many developing countries faces additional challenges to address any changes regarding the prevalence of smallholder players. Meanwhile, value chain studies are still limited in many developing countries, such as in Indonesia. Therefore, this paper aims to assess agrifood value chain in a developing country context. A qualitative methodology was applied in Indonesia’s cashew sector, specifically in the Sumenep Regency of Madura Island. A value chain mapping tool was used by focusing on governance (vertical-horizontal coordination and information flow) and value addition (safety, quality, and value orientation). The results showed that value chain mapping is a powerful tool to draw the complex interaction within the dynamics between different value chain actors. The exploration in Indonesia’s cashew sector showed that there is a gap in practices between actors in terms of governance and value addition. Therefore, it is recommended that smallholders’ governance participation and value adding activities be improved in order to minimize the gap of practises. The potential follow-up research is to address the maturity level of value chain practice to obtain a rigorous improvement route.
The benefits of blue economic development and coastal community development are often conflicting, as many blue economic development project holders are non-local investors and decisions on such projects tend to insufficiently involve communities. The research objective is to analyse the requirements for such interlinkages and to design, test and validate under which circumstances and for which particular products or services this is sufficiently feasible. We call for a novel research agenda which connects divergent claims and benefits. This paper employs Resource Dependency Theory to establish a framework and conduct a purposeful and context-specific literature review of documented cases in ASEAN countries, given the large number of rural coastal communities and the current blue economy policies and projects in this specific region. The first review identifies specific requirements and factors that contribute to or hinder blue economic development and coastal community development. The analysis then focuses on one or more specific case studies/case areas in Madura, Indonesia (or other locations). Hereby, we examined specific development factors, relying on statistics and socio-economic development indicators. The study demonstrates that the lack of coordination across sectoral policies (both at local and central levels) has exacerbated conflicts between communities, seaweed farmers, private enterprises and governments at both local and central levels. These conflicts demonstrate that the blue economy’s rhetoric of inclusive development is not aligned with the practical realities faced by small-scale producers. Moreover, the competition between seaweed farming, fish farming, tourism, and industrial development undermines the ability of small-scale actors to access and utilise marine resources securely. Policies that empower small-scale producers, strengthen local institutions, and promote cross-sectoral coordination would create more effective and sustainable blue economy development.