Logistics Cost Structure Analysis for the Development of Supply Chain Strategies on Aquaculture Business

Abstract

The cost of logistics is one very important factor in the aquaculture business. Each tier in the supply chain will affect the risk and profit margins earned by each business actors. The study was conducted to identify supply chain’s tier in aquaculture business, analyzing the logistics’ cost structure, calculating profit margins, and develop supply chain strategies. The study uses two stages of sampling, there are purposive sampling and snowball sampling. In-depth interviews were conducted to 79 respondents divided into two regions, namely Sleman region (distributed into 7 sub-regions), and Klaten region (3 sub-regions). The results showed aquaculture business which consists of 6 tiers: fish larvae producer, spreader, enlarger, wholesalers (collectors), retailers and consumer. The cost of logistics is the dominant activity procurement costs have on average 80.53% of the total cost. The profit margins for producers of fish larvae, spreaders, enlarger, and wholesalers varies from 0.4% - 57.9%. Supply chain strategy recommended for tier fish larvae producer is vertical integration, the tier spreader is recommended to apply vertical integration with the concept of few suppliers, the proposed strategy for tier enlarger is push-based strategy, and tier wholesaler is a pull-based strategy.



Author Information
Adi Djoko Guritno, University of Gadjah Mada, Indonesia

Paper Information
Conference: ABMC2016
Stream: Q – Agricultural and Natural Resource Economics; Environmental and Ecological Economics

This paper is part of the ABMC2016 Conference Proceedings (View)
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