Optimizing the Vegetable Supply Chain to Increase Farmers' Sales Value

Abstract

The agricultural sector, particularly horticulture, is fundamental to Indonesia's economy, yet the welfare of farmers often remains low. This paradox is largely caused by a long, inefficient, and multi-layered conventional vegetable supply chain, which suppresses farm-gate prices and diminishes the producers' bargaining power. This research aims to analyze the structure of the current vegetable supply chain and identify optimization strategies to increase farmers' selling value. Using a descriptive method with a literature review and a qualitative case study approach, this study investigates the roles of key stakeholders, from farmers to retailers, in the vegetable supply centers of Rokan Hilir Regency. The findings reveal that the lengthy distribution channel, involving collectors, wholesalers, and retailers, significantly reduces the profit margin for farmers. As a solution, the implementation of digital technology to create a shorter, more direct supply chain from farmers to consumers is proven to be the most effective optimization strategy. By cutting out intermediaries, farmers gain full autonomy to set fair prices, leading to a significant increase in their selling value and overall welfare. This study confirms that supply chain optimization is a crucial step toward farmer empowerment and strengthening the national agricultural foundation.