The Supply Chain Efficiency of Organic Rice in Kulon Progo Regency, Special Region of Yogyakarta, Indonesia

Department of Agribusiness, Faculty of Agriculture, Universitas Muhammadiyah Yogyakarta, Jl. Brawijaya, Tamantirto, Kasihan, Bantul 55183, Yogyakarta, Indonesia

^* Corresponding author: eniistiyanti@umy.ac.id

Abstract

Organic rice provides superior quality compared to non-organic one, leading to relatively higher prices. However, many farmers do not benefit from the price difference due to competition with large producers. This study aims to delineate the supply chain of organic rice and analyse its efficiency. This research was conducted in Kulon Progo Regency, precisely in Nanggulan District, identified as a pioneer in organic rice farming and has received organic certification from the Organic Certification Institute. A census was conducted, gathering a total of 67 respondents from the organic rice farmer group. The cooperative served as a marketing institution in the regency, purchasing organic rice from farmers. The organic rice supply chain was analysed descriptively, and its efficiency was assessed using indicators derived from the Performance Measurement System (PMS), encompassing production costs, profits, return on investment (ROI), and transaction costs. The findings unveiled that the organic rice farming in Kulon Progo comprised two supply chains with three key actors: farmers, the cooperative, and consumers. Chain 1 generated the highest efficiency for profit and ROI. To improve the performance of the organic rice supply chain, it is necessary to strengthen the involvement of cooperatives to access a wider market.