Value chain analysis of fresh dairy milk in Sleman Regency

Abstract

The right value chain influences effectiveness and efficiency. The use of the right value chain will provide benefits in economic and environmental. The value chain that can still be maximized is the fresh dairy milk. This paper aimed to analyze the fresh dairy milk channel, marketing margin, and marketing efficiency in Pakem Subdistrict and Cangkringan Subdistrict, Sleman Regency. The research was conducted to collect data from 35 farmers, actors involved, and dairy cooperatives as respondents who were selected using purposive and snowball sampling techniques. The results showed that there are four marketing channels of fresh dairy milk but ineffective due to high marketing margins and a low Farmer’s Share (FS) value of <60. Poor marketing channels have an economic impact and environmental impact. The economic impact on decreasing farmers’ income and reducing farmers’ welfare. While the environmental impact is an increase in the use of fuel in the distribution of fresh dairy milk and the performance of the dairy industry.