ICGAB 2019 Conference

Risk Management of Fermented Cassava Agroindustry In Jember Regency, East Java Province, Indonesia
Yuli Wibowo1, Bambang Herry Purnomo2, Samekto Priyambodo3

Department of Agricultural Industrial Technology, Faculty of Agricultural Technology, University of Jember,


Abstract

Fermented cassava or “tape” is one of traditional Indonesian fermented food. Along with the high level of fermented cassava consumption, the fermented cassava agroindustry in Indonesia is still potential to be developed. In order to develop the fermented cassava agroindustry, there are several risks facing the agroindustry. This study aims to identify risks in the development of the fermented cassava agroindustry, analyze the risk level, and control the risks that exist. The risks to the fermented cassava agroindustry include raw material risk, production process risk, marketing risk, and financial risk. The study was conducted in Jember Regency, East Java province, Indonesia. Risk analysis uses an integration approach between the level of risk violence and the possibility of risk events as a function, which can be visualized into a graph that shows the level of industry risk, including "low risk", "medium risk", and "high risk". Risk control in each type of fermented cassava agroindustry risk uses the Analytical Hierarchy Process technique. The results of the study show that 15 types of risks have been identified in the fermented cassava agroindustry. Based on the risks in the fermented cassava agroindustry, no one is included in the "high risk" category. It can be interpreted that the fermented cassava agroindustry is not a high-risk industry. The risk of the fermented cassava agroindustry being classified as “medium risk” include the availability of raw materials, continuity of raw materials, quality of raw materials, and number of competitors. At the risk of raw material availability, the control effort that can be taken is to make a partnership with suppliers. In the risk of continuity of raw materials, the control effort that can be taken is to improve the performance of the cassava supply chain. In the risk of quality of raw materials, the control effort that can be taken is to improve cassava cultivation and post-harvest techniques. In the risk of the number of competitors, the control effort that can be taken is to increase the promotion of fermented cassava.

Keywords: fermented cassava, fermented cassava agroindustry, risk management, raw material risk, production process risk, marketing risk, financial risk

Topic: AGROINDUSTRIAL PRODUCTION SYSTEM MANAGEMENT AND REGULATION

Link: https://ifory.id/abstract-plain/fBYknqPzCeTK

Web Format | Corresponding Author (Yuli Wibowo)