Supply Chain Analysis of Cayenne Pepper (Capsicum Frutescens L.) in the Traditional Market Case Study of the Manonda Presidential Instruction Market in Palu City, Central Sulawesi Province

Agribusiness Study Program, Faculty of Agriculture, Tadulako University, Central Sulawesi, Indonesia

^* Corresponding author: yuliantigani610@gmail.com

Abstract

This study emphasizes whether the chili supply chain process achieves operational efficiency improvements, cost reductions, product availability, in meeting customer demand in a timely manner. The objective is to analyze the cayenne pepper supply chain and analyze the performance of the cayenne pepper supply chain at the Manonda Inpres Market, Palu City. Using the Purposive Sampling and Snowball Sampling approaches, a sample of 50 farmers, 12 collectors, 35 retailers, and 85 consumers was obtained. Based on the Food Supply Chain Network analysis, the cayenne pepper supply chain consists of two channels with interconnected product, financial, and information flow structures, where relationships between actors are built on trust and direct communication. The product flow system is from upstream (farmers) to downstream (consumers), the financial flow is from downstream to upstream, and the information flow is two-way. The main difference between the two channels is the presence of collector traders, who add a distribution stage but expand the supply range. Overall, the performance of the chili pepper supply chain is relatively efficient, as the farmer share of both channels is greater than 50%, and the efficiency value is less than 33%. However, the first channel is superior and more efficient, as it provides greater benefits for farmers and retailers.