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- International Journal of Management (IJM)
Volume 8, Issue 5, Sep–Oct 2017, pp. 81–92, Article ID: IJM_08_05_009
Available online at
http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=8&IType=5
Journal Impact Factor (2016): 8.1920 (Calculated by GISI) www.jifactor.com
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
© IAEME Publication
FRESHWATER FISH CULTIVATION
ECONOMY VALUE CHAIN MODEL - SURVEY
ON TWO VILLAGES IN SUBANG AND
PURWAKARTA
Aminuddin Irfani and Muhardi
Faculty of Economics and Business, Universitas Islam Bandung
ABSTRACT
Different with the people in Nagrog Village, most of the people in Mayang village
are freshwater fish cultivators. However, there are several problems connected with
cultivation, especially on the cultivation institutional and management, such as not
optimized group functions and individualized cultivation production marketing. The
problems in both aspects bring serious effects on freshwater fish cultivation’s value
chain. The existence of the problems, drive interest to further acknowledge about: (1)
the primary and supporting aspects of freshwater fish cultivation in both villages; and
(2) freshwater fish cultivation’s economy value chain in both villages. The method
utilized in this research is a descriptive survey with data collection through depth
interview through focus group discussion with local government, stakeholders, and
freshwater fish cultivation cultivators. The result of this research are: (1) the
freshwater fish cultivation in both village includes input market, operational activity,
distribution, human resource development, and cultivation technology; (2) there are
weaknesses in the primary and support activities of freshwater fish cultivation in
Mayang Village, which produced by a weak non-physical infrastructure, cultivation
technology utilization, and cultivator human resource development. Meanwhile, in
Nagrog Village these weaknesses are not found due to strategic roles played by
cultivator business group.
Key words: Fish cultivation economy, value chain model, freshwater fish cultivation.
Cite this Article: Aminuddin Irfani and Muhardi, Freshwater Fish Cultivation
Economy Value Chain Model - Survey on Two Villages in Subang and Purwakarta.
International Journal of Management, 8 (5), 2017, pp. 81–92.
http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=8&IType=5
1. INTRODUCTION
Freshwater fish cultivation has become a significant economic activity for the society both in
Mayang and Nagrog Village, and the high level of water and human resource availability, are
the main factors that push freshwater fish cultivation activity. Based on initial research,
despite the difference of economical contribution level, the business plays a significant role in
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these villages economy dynamization. However, cultivators in Nagrog Village provide a
lower contribution despite their high level of productivity compared with the ones in Mayang
Village. This situation happens because the majority of the people in Mayang Village are
freshwater cultivators. Meanwhile, the people of Nagrog Village is more interested in rice
farming.
Regardless of freshwater cultivation sector’s domination in Mayang Village, the people
are still practicing their business individually. This management method includes their
activities in input market such as fish seeds and feeds procurement, and output market as a
mean to sell their products. The existence of this individualism is weakening their bargaining
power against both input or output market.
The inexistence of business group brings out an opportunity for several cultivators to take
a second role as middlemen, to gain extra profit in the form of distribution service for other
cultivators, especially in input and output market activities. Nevertheless, these internal
middlemen only play a minimum role because they will only distribute the fish commodity to
other intermediaries with a larger scale from outside of the village. This extra chain in the
freshwater fish cultivation business value chain of Mayang Village’s cultivator has produced
an urgency for business group formation. On the other hand, the cultivators in Nagrog Village
have already benefitted the existence of business group collectively. The business group also
plays a major role in every aspect of their business, starting from activities in input market to
various activities in the output market. Despite the maximization of the business group, there
is still weakness in the capital system and production optimization, which is caused by lack
Initiative to access capital source.
Identification of the cultivation situation in both of these villages based on initial research,
produce a high motivation to conduct a research to acknowledge further; (1) the primary and
support activities of freshwater fish cultivation in both village; and (2) these villages’
freshwater fish cultivation economy value chain.
2. LITERATURE STUDY
Value chain optimization is an important aspect to improve agricultural businesses, including
freshwater fish cultivation, to reach sustainability. With an optimized value chain, business
activities will have a stronger structure, and profit optimization achievement would be a lot
easier. Every aspect in supply chain plays a significant role in value creation process, and
their condition will significantly influence other areas of the value chain. This situation is in
parallel with Stratan et. al. (2012), which states that in a supply chain, various important
activities will help value creation such as production, raw material processing, and disposal
after utilization. Barber’s (2008) statement, further amplify this statement by claiming that
value creation in the supply chain can occur either in tangible or intangible chains.
In a value chain, there are two groups of activities. The first group consists of primary
activities, which are inbound logistics, operations, outbound logistics, marketing and sales,
and service. Meanwhile, the second group includes support activities, which are procurement,
technology development, human resource management, and a solid infrastructure (Porter,
1998).
It is important to enhance communication effectivity, knowledge sharing, and trust in
every aspect of the value chain to create a sustainable and stable value chain(Lewis et. al.,
2014). The value chain in fish cultivation business has a major role to build society tenacity
and has a high and broader influence towards national economy. Following that, Higgins et.
al. (2010) state that value chain has a fundamental role in the society and national economy
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- Freshwater Fish Cultivation Economy Value Chain Model - Survey on Two Villages in
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sustainability, and to improve producer’s stability and prosperity whether individually or
collectively.
The basic thing to create sustainability is to improve the balance of cooperation program
and supportive government (Yusuf and Trondsen, 2013). The government should be able to
cooperate with the cultivators to create regulations that can improve the people’s prosperity
and economic system (Kabu and Tira, 2015). To improve basic understanding and business
sustainability, the government should prioritize communication with the cultivators (Donovan
et. al., 2015). Government contribution can benefit every personnel involved in fish
cultivation sector, such as the involvement of the cultivators to form various value chain
strengthening concept so that the implementation of this concept would be sustainable and can
bring a maximum profit for the freshwater fish cultivation cultivators.
Improvement of capital provision and processing technique will provide ways for
cultivators to involve themselves in the value chain and improve business sustainability
(Choudary et. al., 2015). Meanwhile, according to Ros-tonen et. al. (2015), to improve market
productivity and integration, value chain collaboration is essential. Therefore, it is important
for the cultivators to develop a strategic partnership to fulfill customer’s demands (Stevenson
et. al., 2011). The strategic collaboration will further be able to facilitate product quality
creation, product differentiation, and a balanced distribution for the cultivators (Lev and
Stevenson, 2011). However, Ricketts et. al. (2014) mentioned that participation in value chain
wouldn’t be able to bring a significant contribution to value chain improvement.
The government collaboration and participation on fish cultivation business would bring a
significant impact. One of the impacts is the emergence of various changes in the value chain,
whether from structural or cost perspective. The existed transformation should provide a
chance to exploit value chain to maximize profit through market access refinement (Fatima et.
al., 2016). Changes in business processing system will influence the customer, especially on
their consumption activity. The change will increase market attractiveness for the cultivators
in an attempt to fulfill the existing demand. As mentioned by Zylberberg (2013), customer
behavior transition increases business attractiveness and further inspire the creation of a long-
term improvement strategy.
Product differentiation is one of the most important things to improve business
sustainability. However, product differentiation realization should be equipped with relevant
information, so that the cultivators would be able to create a better linkage with the customers
(Buskirk et. al., 2013).
3. RESEARCH METHOD
The Method utilized in this research was descriptive survey method. Descriptive technique
expected to be able to reveal problems that occur in this business. Meanwhile, the survey
technique was utilized to acknowledge the value chain of freshwater fish cultivation and
explains various phenomenon faced by the cultivators in Mayang and Nagrog Village, in the
management of their businesses.
Primary data collection, which is essential for this research was obtained through
interview, observation, and information analysis. This information was directly collected
through field survey in the form of depth interview (Focus Group Discussion / FGD) with
local government, connected stakeholders, and the cultivators of both villages. Meanwhile,
secondary data was collected from relevant agencies, such as district and village offices. The
collected data further analyzed with value chain analysis technique to acknowledge the
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primary and support activities in freshwater fish cultivation, and to provide a profound
understanding of freshwater fish cultivation businesses in both villages.
4. RESULT AND DISCUSSION
4.1. The Primary and Support Activities of Freshwater Fish Cultivation
Freshwater fish cultivation and rice farming businesses have been dominating Mayang
Village's economic sector. Although those two sectors play a balanced role in the people’s
economy, fish cultivation industry provides larger income for the society compared with
farming sector. Despite the business scale that is relatively small, the quality of freshwater
fish cultivation product in Mayang Village is pretty decent. This level of product quality,
further impacting the customer consumption behavior and creates a recurring purchase,
although the purchase quantity is rather fluctuating and unstable.
Despite the high business interest, there are still potential areas yet to be utilized by the
society. The inability to optimize field utilization is caused by the people’s weakness in
capital provision ability, and only able to benefit a self-provided capital without any access on
a larger capital system. Because of that, it can be stated that the business scale, which is
minimum, is generated due to a limited amount of working capital. The cultivators also
generally sell products in the form of fresh fish, without any further processing activity. This
marketing behavior creates a limited added value on their products and a one-door income for
the cultivator society.
The people of Mayang Village are still conducting their businesses traditionally, without
technological utilization due to minimum knowledge in the field of cultivation technology. In
reality, the cultivators receive annual training to improve their knowledge about cultivation
technology. However, in practice, the training is limited to only three people, and there is no
official forum or group where they can distribute the knowledge gained from the training.
Infrastructure: (1) available field (there are several idle field), (2) large quantity of water source,
irrigation, inadequate roadways, (3) absence of fish processing factory to create added value, (4) no
business group especially cooperation, (5) weak capital access, (6) self-provided capital.
SUPPORT ACTIVITIES
Human resource: (1) there is an annual trainingprogram, however the impact of the training program is
yet to reach optimum level, (2) cultivation business conducted individually (low bargaining power against
input and output market), and (3) fresh water fish cultivation skill regenerated across generations.
Technology development: (1) static cultivation method (traditional); and (2) there is no significant
Fishery
improvement in cultivation technology. as The
Village’s
Main
Procurement: (1) the existence of asymmetrical information against input market; (2) product marketing in
form of raw products; (3) product provision that is based on inner driving force causes fluctuative selling Leading
price; (4)seeds and feeds quality is difficult to control; and (5) economic of large scale is not presented. Sector
Inbound Logistic: Operation: Outbound Marketing and Service:
Weak input market Static fishery Logistic: Selling: Post marketing
bargaining power cultivation Weak output Internal and external service in form of
(individualy management. market bargaining middlemen has a information
conducted business). Cultivation power; internal dominant role in provision and
External middlemen without standard middlemen play marketing and selling continued product
has dominant operation a dominant role in (there is an distribution
bargaining power on procedure. output logistic asymmetrical practiced by the
both input market. distribution. information) middlemen
PRIMARY ACTIVITIES
Figure 1 The Primary and support activities of Freshwater Fish cultivation in Mayang Village
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- Freshwater Fish Cultivation Economy Value Chain Model - Survey on Two Villages in
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The practice of cultivation science and technology by the society is passed through
generations because the cultivators are more confident in practicing these techniques. The
cultivator’s weak initiative to apply knowledge gained by some of the cultivators from
annually conducted training programs, creates limitations for the cultivators, especially from
the quality perspective.
The cultivator’s business activity is driven by inner driving force or motivation that
emerges due to personal needs. This type of motivation is further drives the cultivators to
limit their production level based on their needs. This situation results from low attention
from the cultivators towards their production quantity and brings influence on commodity
price stability. Furthermore, marketing activity that is conducted individually also contributes
to price stability degradation.
Infrastructure: (1) limited cultivation space; (2) large quantity of water source, irrigation,
adequate roadways; (3) the existence of business group; (4) government provides training
programs, and (5) external capital provision availability.
SUPPORT ACTIVITY
Human resource: (1) trainings for cultivators as members of business group; (2) collective
business through official business group’s involvement; (3) the cultivators are generally on a
productive line of age.
Technological development: (1) cultivation process utilizes technological knowledge; (2)
marketing process have started to involves technological utilization such as social media.
Fishery
Procurement: (1) relatively stabilized output market price; (2) product selling in form of raw
as The
material; (3) standardized cultivation period influences product availability; (4) input quality is
well-controlled; and (5) the existence of economic of large scaleconcept in input output market Village’s
activity through business group. Main
Leading
Inbound Operation: Outbound Marketing and Service: Sector
logistic: The involvement logistic: selling: A clear post
Strong of a decent fish Strong bargaining Cultivation group marketing
bargaining cultivation power against that plays a service in
power against program, dynamic output market. dominant role in form of
input market. cultivation method Strong role from marketing and information
Strong role from improvement business group in selling creates an provision and
business group andstandard coordinating organized continued
in procuring operation input commodity marketing (well- product
input procedure. dan terjadwal. known target distribution
commodity market).
PRIMARY ACTIVITY
Figure 2 The Primary and support activities of Freshwater Fish cultivation in Nagrog Village
Business individualism practiced by cultivators in Mayang Village makes it more difficult
for the society to form a business group that would be able to accommodate every activity
either in input or output market. Raw materials such as seeds and feeds procured from input
market performers, which is located outside of the village. This situation forces the cultivators
to purchase their raw materials with a relatively higher material price because of extra cost
generated from distribution activity. Some cultivators that have more capital than the others
view this obstacle as an opportunity to gain extra profit by taking a role as distributor, or
which is known as middlemen by the locals. The existence of these intermediaries agent
apparently failed to bring positive impacts for the cultivators. If fact, they have become one of
the problems, and widen the asymmetrical information gap between the cultivators and input-
output market. The internal middlemen (that comes from inside of the village), only
functioned as a temporary distributor for external middlemen, without any ability to influence
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commodity price. External middlemen are the ones that formulate commodity price based on
their knowledge of the market situation. Furthermore, internal middlemen bear higher
business risks because external middlemen will only accept products with high quality. For
example, if some of the fish are dead or defected during the distribution process, external
middlemen will not receive the defected commodity. External intermediaries distribute the
distributed commodities to intermediary customers in several neighboring cities, to further
prepared as a more valuable commodity before finally marketed to final customers.
Different with business situations in Mayang Village, cultivation activities in Nagrog
Village is relatively in a better condition. Fish breeding business, which emerges around the
1980s in this village, has become one of the leading businesses for the majority of the society
for generations, besides rice farming that has been managed systematically. In the early era,
the cultivators in Nagrog village straightforwardly run their businesses with a rather
traditional ways. However, the first intention of the cultivation activity establishment was
only for private and monumental consumption. Over time, cultivation activities run by the
society in this village further specified into parrot fish breeding (nursery).
Despite its rapid development and high business prospect, fish cultivation business in
Nagrog village is yet to reach its optimum level. Farming is still dominating because the
society has a hard time to adjust and overcome their worries about business risks, and finally
switch business into fish cultivation. This situation generates low number of lands developped
as fish cultivation land. Most of the people in this village assume that fish breeding is not
dependable enough as primary income, also the management is rather more complicated than
the ones in rice farming sector.
In the perspective of bargaining power against input and output market, cultivation
business in Nagrog village is in decent condition. The existence of business group creates
stability in commodity price. Procurement activity in input market is only to obtain fish feed.
Meanwhile raw material, which is known as breeder fish is self sustainably provided by the
business group. The well-maintained quality of breeders, help the cultivators in this village to
produce high-quality fish seeds.
The cultivators are also benefitting the existence of business group to accommodate their
needs and strengthen their bargaining power against output market. The cultivators run their
product selling activity in a collective and controlled way, to ensure that the quality and
quantity of their commodity is stable. Furthermore, this collective actions that have
minimized the level of distribution cost bring positive impact towards total cost formation.
The ability of the business group to accommodate transactions against input and output
market diminishes any chance for middlemen to enter the value chain.
The utilization of cultivation technology in fish cultivation business has reached an
optimum level, and its application is started from the early stage of the cultivation process.
For example, the cultivators apply conditioning process on breeder fish for two to three days
before spawning stage, in which the conception process occurs. The application of
conditioning process intention is to ripen male fishes’ sperm so that the quality of fish seeds
would be at an optimum level. After spawning stage, the seeds that already grown into fish
larvae will be moved and involved in nursery stage until they reach three to five centimeters
on the first phase and six to eight centimeters on the second phase. Every step of these
activities is self-sustainably conducted, by applying previously obtained knowledge from the
training programs carried out by the business group.
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The business group performs marketing activities in their cultivation business by using
direct marketing and by utilizing social media Facebook as publishing media. In reality,
however, with the high-quality products business group is yet to reach customers in a broader
scope. Product selling activity is only able to fulfill the needs of several cities in West Java or
local level. Even though product selling have priorly reached offshore market, offshore
customer’s demand fullfillment process in not continued. The problem comes from the
cultivator's inability to produce seeds in a larger quantity due to minimum land utilization
level. Despite the existing production level, the cultivators have been able to reach 300 to 400
thousand seeds for each distribution periods, which only fulfill thirty percent of total demand
received by the cultivators through the business group. Even with the application of
cultivation innovation and technology, production enhancement is yet to reach the optimum
level. The only solution available according to the cultivators is to create more cultivation
location by transforming a small number of rice farming lands.
The cultivators in Nagrog Village have decent access to the capital provision. There are
various institutions, whether banking or nonbanking, government institution, or individuals
that offer their capital access available for the cultivators in the form of loans and
investments. These capital options emerge by itself because of the cultivators’ well-known
high business potential. Although there is a broad access for capital provision, the cultivators
are still having a hard time benefitting this advantage because of cultivation land limitation.
As one of the stakeholders, the government of Nagrog Village is showing supportive
actions for these cultivation businesses by simplifying regulations for the society to establish
freshwater cultivation business. Meanwhile, the existence of government fish cultivation
office, which situated in the village area act as training facilitator by providing demonstration
pond (Dem-pond) for the cultivators in this village. The usability of this display pond is to
become props or pilot system to drive the people’s interests in Nagrog Village on freshwater
cultivation business. Furthermore, government fish cultivation office also supervises the
cultivators’ business development to optimize their results of activities. The decent condition
of Nagrog Village’s infrastructure creates a good information flow to strengthen the
cultivators’ bargaining power.
Based on infrastructure perspective, these villages also have several differences that
significantly influence business condition. With a longer range to reach the city center,
cultivators in Mayang Village are facing a relatively higher risk to distribute their commodity.
Besides that, the cultivators establish their business with limited access from the main road.
This situation adds more difficulties for the cultivators to distribute their products outside of
the village.
Different with Mayang Village, the quality of infrastructure in Nagrog Village is in much
better condition. The village’s main road is well-paved, and the cultivators establish their
business along the main road with one concentrated commodity collection site. Indicators
related to this infrastructure, further improve business efficiency due to a much easier
distribution activity, and easier access for their customer to go in or out of the village.
There are significant differences found on primary and support activities of freshwater
fish cultivation business in both villages. One noticeable difference, which is on infrastructure
sector, is mainly influenced by the role of the local government policies on village’s
infrastructure development. Government policy on infrastructure development in Mayang
Village, which is rather very minimum, have impacted the society’s cultivation business
success level. It's hard for the cultivators to build an efficient distribution system and
strengthen their bargaining power against input and output market. On the contrary, the effort
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of Nagrog Village’s government in the construction of the village as a whole has made it
easier for the freshwater cultivator's society to distribute their commodity, and further
strengthen the cultivators bargaining power against input and output market.
In the subject of business capital, the cultivators in both of these villages are still utilizing
self-provided or private capital. The only difference is their access to external capital access
and utilization. Access to capital provision is still a vital subject for the cultivators in Mayang
Village. On the other hand, the capital provision that is already accessible for cultivators in
Nagrog Village needs to be optimally utilized by transforming some unprofitable farming
areas into a more benefiting fish cultivation areas.
Cultivation technology utilization in both of these villages also have a significant
difference, and further determine the cultivator's success. Application of cultivation
technology in Mayang Village is relatively on a lower level than the ones found in Nagrog
Village, and are a more traditional technique that is passed through generations. This situation
is generated because of low training results application, and difficulties to willingly apply
sophisticated cultivation technology that is obtained through the existing training programs.
Based on this description, we can say that there are significant differences in cultivation
businesses run by the people in both Mayang and Nagrog Village, especially on the subject of
business management, bargaining power against input and output market, supporting
infrastructures, and government involvement level. Furthermore, the existence of the business
group in Nagrog Village provide a vital contribution to the cultivators’ marketing activities,
and to strengthen the cultivators’ bargaining power against input and output market.
4.2. Value Chain of Freshwater Fish cultivation Economy
The general classification of primary activities in value chains is inbound logistics, operation,
outbound logistics, marketing, and service (Porter, 1998). A profound analysis of these
activities will provide a complete picture on Mayang and Nagrog Villages freshwater fish
cultivation businesses’ strengthening and weakening factors. In reality, fish breeding business
in both of these villages has several differences.
Value chain of fish cultivation business in Mayang Village
In fish cultivation business, the cultivators in Mayang Village obtain their raw material, in the
form of feeds and seeds, through suppliers outside of the village, by conducting direct buying
or reservation system. After receiving raw materials, the cultivators in this village manage
their business individually. When it’s almost time, the cultivators usually offer their
commodity to middlemen in the village (internal middlemen), to buy their commodity and
also to conduct harvesting activity. Price formation in this buying activity is generated
through negotiations between the cultivators and the middlemen. The middlemen will further
hold responsibility for distribution, packing, and risk handling process. Some of these
middlemen usually pay in cash. Meanwhile, the other ones usually process their payment after
completing shipping process.
Internal middlemen, which are also a part of the village, distribute the cultivators’
commodity to external middlemen from outside of the village. External middlemen will only
buy commodities in fresh condition and refuse to buy commodities in another condition. The
existence of these two type of middlemen extends product selling steps in the value chain and
brings pressure on commodity price. Besides that, external middlemen hold an important role
to market freshwater fish cultivation commodity from these two villages. Middlemen’s
discretion to interact with output market without interruptions creates an asymmetrical
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information and strengthen external middlemen’s grasps on the cultivators and also internal
middlemen.
Based on the findings, it can be stated that the weakest point in cultivators fish cultivation
business of Mayang Village is the cultivators themselves. The existence of minimum access
on market information, creates an oligopoly input and output market, isolate the cultivators
from the valuable information of both markets, especially output market. Furthermore, the
extra factors that prolong the value chain bring more difficulties for the cultivators to be able
to increase their commodity price.
Value chain of fish cultivation business in Nagrog Village
The cultivators in Nagrog Village self-sustainably obtain their raw material in the form of
breeder fish from the business group. Meanwhile, fish feeds are procured from large-scale
suppliers outside of the village area. Because of that, we can state that feeds commodity
market form is a monopoly market. Technologies involved in the cultivators business
management are conditioning, periodic spawning, comparison scale application on male and
female breeder fish, and much more.
The marketing process is started since the fish reach larvae stage. However, at this early
stage, not all larvae are sold to the customer. Half of these larvae is processed further on first
and second nursery stages. On the first stage, the larvae are grown into three to five
centimeters and five to eight centimeter on the second stage. Selling activity is also conducted
in between the nursing stages. Based on profit perspective, seeds from the second nursery
stage produces the highest profit for the cultivators. However, quantity produced from the
second stage is relatively low because the cultivators prefer to sell their commodities on
larvae stage. The formation of this decision is mainly influenced by their needs of a fast
capital turnover.
The business group manages every activity related to the input and output market. The
business group, which conducts distribution process collectively, helps the prevention of
middlemen to enter the value chain. Similarly, marketing and selling activities are also
collectively held by the business group to several customers located in sister cities such as
Sukabumi, Cianjur, Subang, Bandung, and Purwakarta.
The cultivators in Nagrog Village are only facing one problem in their business
management. The problem is their inability to increase commodity production quantity. This
indication is produced due to their ability only to fulfill 30% of total demand for their product.
One way to improve their commodity production number is to expand their cultivation land.
However, in reality, the practice of this solution would also be quite difficult because the
people of this village still view cultivation business as a business with low-interest, and more
complicated compared to rice farming.
Based on the description, there are significant differences in both villages’ business value
chain structure. The cultivators in Mayang Village still individually conduct their business
and highly dependent on middlemen, either internal or external, to market their commodity.
Meanwhile, the cultivators in Nagrog Village have gone better by conducting their business
collectively by utilizing business group.
5. CONCLUSIONS
There are two most important aspects in fish cultivation sector of both villages, which is
primary and support activities. The primary activity includes inbound logistic in the form of
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raw material procurement for the cultivation business and operational activity that includes
business management method utilized by the cultivators in both villages. Meanwhile,
outbound logistic activities include commodity distribution towards the market, and customer
service to achieve business continuity and demand fulfillment (continuous market). The
supporting aspects of fish cultivation sector in both villages are the existence of physical and
non-physical infrastructure, human resource, technology, and also procurement which directly
connected with product quantity and quality formation.
There are several differences found in fish cultivation business on both villages. However,
from both villages, cultivators in Mayang Village has more weaknesses compared with the
cultivators in Nagrog Village. On the primary activity, the cultivators in Mayang Village are
facing difficulties in the business value chain, because of their weak bargaining power against
input and output market. Meanwhile, weaknesses on supporting aspects are seen from
infrastructure, technological utilization, and human resource issues. On the other hand, the
business situation in Nagrog Village is entirely different. The cultivators are benefitting
business group to assist them in various strategical business aspects and further strengthen
their bargaining power.
Based on identification conducted towards both village, it can be stated that government
role in freshwater fish cultivation is proven vital. If the government plays their role right in
freshwater fish cultivation, they will be able to strengthen freshwater fish cultivation’s value
chain as a whole and creates a new leading sector in the economy.
6. RESEARCH LIMITATION
This research helps picture a bright image on fish cultivation business situation along with its
primary and support activities. Besides that, this research has also revealed the important role
of a business group for the cultivators, especially in both villages. However, this research still
has several limitations.
The focus of this research is limited to two respondent villages, which its scope wouldn’t
be able to picture the general conditions of a broader freshwater fish cultivation business.
Because of that, it is important to broaden the extent of the research to have a better and a
more accurate perspective on freshwater fish cultivation business, especially in another area in
Indonesia. A broader sample would picture a clearer image on various difficulties on fish
cultivation business, to strengthen and improve fish cultivation sector as one of the people’s
economical leading sectors.
7. IMPLIKASI MANAJERIAL
The role of the business group can be an important solution to various challenges faced by
freshwater fish cultivation cultivators. The existence of the business group, in reality, would
be able to increase the cultivators bargaining power, and further bring prosperity for the
people. The business group is also able to provide additional cultivation knowledge through
various training programs. The training programs are also able to create an added value for
the cultivators’ product and optimize their business profit. The business group, which able to
accommodate the cultivators’ activities collectively, will bring extra strength and improve the
cultivators’ bargaining power and stabilize fish cultivation commodity price in general.
8. RECOMMENDATION FOR FURTHER RESEARCH
A more thorough and further research would be able to reveal business group’s vital role,
especially for Indonesian fish cultivation sector. Besides that, further research will be able to
http://www.iaeme.com/IJM/index.asp 90 editor@iaeme.com
- Freshwater Fish Cultivation Economy Value Chain Model - Survey on Two Villages in
Subang and Purwakarta
explain the most frequently faced problems by freshwater fish cultivation cultivators in
Indonesia, and provide a unique and accurate solution for the problems.
Further research, especially on group’s important role to improve the cultivators’
empowerment in other sectors can be conducted to amplify significant findings on this
research, which states that business group plays an important role for micro-business in
Indonesian villages areas.
ACKNOWLEDGEMENT
This research is funded by the Director of Research and Community Service, Directorates
General of Research Reinforcement and Development, Ministry of Research, Technology and
High Education, in correspondence with Research Grant Implementation Assignment
Agreement Letter, Number:105/SP2H/PPM/DRPM/II/2016, February 17, 2016.
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