1 AIT Asian Institute of Technology

Analyses of selected agroindustries in East Java, Indonesia

AuthorIda Bagus Suryaningrat
Call NumberAIT Diss. no.AE-03-01
Subject(s)Agricultural industries--Indonesia

NoteA dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Engineering, School of Environment, Resources and Development
PublisherAsian Institute of Technology
Series StatementDissertation ; no. AE-03-01
AbstractAround 308,000 ha of area in Indonesia (out of 59.8 million ha) are used to cultivate major fruits. In East Java province, fruit processing is a part of agroindustrial activities. Inadequate raw material, inappropriate processing techniques and inadequate marketing of agroindustrial produce are major sources of problems. This situation needed to be reviewed and possible policies for improvements to be suggested to support agroindustries in East Java, Indonesia. With this view in mind this study was undertaken. The objectives of the study were to review the current situation of agro- processing in East Java; to determine critical factors which affect the material production, processing and marketing; and to suggest guidelines to government for agroindustrial development in the region. In this study, a questionnaire was addressed to 63 small and medium fruit processing industries (SMFPIs), nine large fruit processing industries (LFPIS), and 42 officers from 10 government institutions. A purposive random sampling of respondents were used from five fruit supplying districts for six types of processed fruit products. Frequency distribution, Likert scale method and correlation analysis were used for data analysis. It was found that most SMFPIs (65 per cent of reSpondents) bought raw material from the local market. LFPIs (67 percent) used middlemen more than SMFPIs (18 per cent) to procure raw material. Seventy eight per cent of LFPIs and 38 per cent of SMFPIs used a contract system in procuring raw material. For LFPIs and SMFPIS, the quantity of raw material was the important factor followed by quality and continuity. All of LFPIs and 68 per cent of SMFPIs agreed that the most important problem of using technology is the lack of capital, followed by low skill of operators. Most of SMFPIs (91 per cent) sold their products in a local district but all LFPIs sold their products to other districts or provinces. Seventy eight per cent of LFPIs and 57 per cent SMFPIs agreed that damaged product and late delivery were the major problems in distribution activity associated with transportation facilities. LFPls agreed that quality and brand are important factors in the market. In terms of integrated network system, it was observed that involvement of government institutions in developing SMFPIs is still relatively low. Resource availability and continuity of raw material supply were the strong factors in procurement of raw material in LFPIS. Technological problems and lack of inventory system were the critical factors in processing activities in SMFPIS. In marketing, packaging was a critical factor influencing SMFPIs and LFPIs overall performance. Government support in terms of arranging training programs about raw material handling, quality control, new technology, providing soft credit, and improved transportation facilities, are strongly recommended for the development of agroindustries. The Plan and Development Agency, Department of Industry and Trade, Department of Agricultural and Food Plants, and financial institutions should strongly support fruit processing industry development.
Year2003
Corresponding Series Added EntryAsian Institute of Technology. Dissertation ; no. AE-03-01
TypeDissertation
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Food, Agriculture and Natural Resources (Former title: Department of Food Agriculture, and BioResources (DFAB))
Academic Program/FoSAgricultural and Food Engineering (AE)
Chairperson(s)Salokhe, V. M.;
Examination Committee(s)Singh, Gajendra;Bechter, Clemens;Hicks, Alastair;Kameoka, Takaharu,;
Scholarship Donor(s)DUE Project,;
DegreeThesis (Ph.D.) - Asian Institute of Technology, 2003


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