The Performance of Pineapple Supply Chains in Riau Province, Indonesia

Abstract

<p>This study aimed to identify the actors involved in the pineapple supply chain, identify their roles, analyses the chain's governance structure and formulate alternative strategies to link smallholders to the modern market in Riau Province. The study was conducted during January-December 2016, in Kampar District. Primary data were collected through field observations and interviews, while secondary data were obtained from relevant institutions. Data were analyzed using the principles of supply chain analysis. The results showed that there were several actors involved in the pineapple supply chains in Riau. The governance structure among actors along the chain was mostly in the form of informal contracts. The number of modern retail markets and food processors is increasing in Riau, providing new market opportunities for pineapple farmers. However, to participate in such chains, farmers still face several challenges, including meeting the higher quality requirements imposed by modern markets, managing the payment delays and costs associated with supply to supermarkets and ensuring supply continuity.</p>