Revue du Journal arabe des affaires et de la gestion

Improving Collaboration of Bali Cattle Supply Chain and Its Impact on Cattle Farmer Income in South Sulawesi, Indonesia

Abstract

Mappigau P, Hastang, Asnawi A and Kadir S

This study aims to identify collaboration problems cause of low income of cattle farmers in Bali cattle supply and to determine a root of the problems that vital to be improved. As many as 126 main actors of Bali cattle supply chain, consists of 96 cattle farmers and 26 traders (the dyadic relationship) in South Sulawesi Province used as the sample of respondents .Data collected using interview techniques with instrument questionnaires and focus group discussions (FGD). The data collected was analyzed with a relatively important index (RII) and cause-and-effect (fish bone diagram). Results of RII analysis show that the first important rank of collaboration problem cause low income farmers according to perception of cattle farmers was incentive alignment, while according to the traders was decision synchronization. From the focus group discussion, results of cause-and-effect analysis show that a root of the collaboration problem was decision synchronizing with incentives alignment. This a root of collaboration problem has agreed by the FGD participants that vital for improving and they recommended action plans such are developing trust and communication to reduce costs and increase revenue, and incentives alignment can be improved by applying a system based prices quality. The results of this study have important implications for the way in which to give contribution to the development of a collaboration theory in the local beef cattle industry and become a reference for the supply chain actors and local governments to improve Bali cattle supply chain management.