A Value Chain Analysis of Rice Commodity: Value Addition and Develop Strategies

Uncertainties in rice demand and supply has been impacted market price and simultaneously to each main actors marketing margin. Taking consciousness to the phenomenon, recent study was organized in order to serve a proper explanation of current rice marketing channel activity, involving its value addition processes to evaluate rice value chain performance. This study was carried out to describe the rice value chain activities and calculate each actor’s profit. Research also concerned with portraying strategies to improve competitive advantage of Rumah Pangan Kita as a rice retailer. This research incorporates the value chain analysis (VCA) framework and Strength-Weakness-Opportunity-Threat analysis of the rice value chain (RVC) to look at value adds and suggested upgrading measures to identify various segments in the RVC and improve the competitiveness. Marketing and sales activity and firm infrastructure contributed the highest potential value to Rumah Pangan Kita’s business. Meanwhile, marketing chain has shown that rice millers have the significant profit. The following analysis revealed that internal and external environment of Rumah Pangan Kita supported its strong position. Maintaining the sustainability of the rice value chain by involving Rumah Pangan Kita in its marketing channel will significantly boost actors’ welfare and strengthen Rumah Pangan Kita’s competitive advantage.