International Journal of Agriculture Sciences ISSN: 0975-3710 & E-ISSN: 0975-9107, Volume 10, Issue 16, 2018, pp.-7011-7013 Available online at https://www.bioinfopublication.org/jouarchive.php?opt=&jouid=BPJ0000217 Review Article MODEL BEHAVIOUR OF SHALLOT SUPPLY CHAIN IN MAJALENGKA REGENCY ANDAYANI SRI AYU1 AND SUMEKAR YAYAN2* 1Faculty of Agriculture, Universitas Majalengka, Majalengka, 45418, Indonesia 2Faculty of Agriculture, Universitas Padjadjaran, Sumedang, 45363, Indonesia *Corresponding Author: Email - [email protected] Received: August 20, 2018; Revised: August 25, 2018; Accepted: August 26, 2018; Published: August 30, 2018 Abstract: Shallot is one of the horticultural commodities which has a high economic value and potential in generating income for farmers. However, this commodity still has problems in supply chain including the low productivity, the non-optimal process of production up to marketing, and the occurrence of fluctuations in production and prices. The purpose of this research is to examine the physical structure and decision of shallot supply chain phenomenon in Majalengka Regency, West Java, and observe the model behavior to provide support in the development of shallot agribusiness cluster. This research uses qualitative and quantitative methods with System Dynamics analysis. The results reveal that physical structure and decision of shallot supply chain shown in the behavior of model production that continues to increase although positioned under the growth of skilled farmers due to the non-optimal use of productive land, but it is supported by the large demand for shallot. However, shallot farmers in Majalengka still depend their market on wholesalers or collectors/traders due to the insistence of economic needs. Thus, to establish and strengthen the institutional such as cooperative is necessary to facilitate the more profitable interlacing market partnership. Keywords: Shallot, Supply Chain, Model Behavior, System Dynamics, Partnership Citation: Andayani Sri Ayu and Sumekar Yayan (2018) Model Behaviour of Shallot Supply Chain in Majalengka Regency. International Journal of Agriculture Sciences, ISSN: 0975-3710 & E-ISSN: 0975-9107, Volume 10, Issue 16, pp.- 7011-7013. Copyright: Copyright©2018 Andayani Sri Ayu and Sumekar Yayan. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original author and source are credited. Introduction Majalengka Regency, although reckoned as one of the shallot cluster Shallot is one of the vegetable commodities which always cultivated by farmers development agribusiness regions initiated by Bank Indonesia of Cirebon, still has since it has a high economic value and potential in generating income. The problems that need to be taken care of. Those problems are the low productivity, increasing population led to a high demand for shallot. This commodity has a the non-optimal activities from production to marketing, and frequent price seasonal nature of production, while the need and demand for shallots continues fluctuations. The research result by [3] describes problems which often occur in to rise. The peak production of shallot (in higher average) generally occurs in shallot commodity in Majalengka Regency, namely the pests diseases, lack of January, June, and July [1]. There are 6 provinces of shallot centers in Indonesia, provision of facilities to purchase fertilizers and pesticides, and a growing number namely Sumatra Barat (West Sumatera) , Sulawesi Selatan (South Sulawesi), of imported shallots that cause the low selling price of farmers’ shallot in the Jawa Tengah (Central Java), Jawa Timur (East Java), Jawa Barat (West Java), market. The background above brings forth an interesting research question to be and Nusa Tenggara Barat (West Nusa Tenggara). The development of shallot examined of how is the physical structure and decision of shallot supply chain acreage in Indonesia in January – July 2017 reached 89.34 thousand hectares or phenomenon and how is the behavior model that would provide what kind of 89.70% of target's acreage of 99.60 thousand hectares. The realization of shallot support for shallot agribusiness cluster development in Majalengka Regency. planting in January– July 2017 compared to the same period last year was rising for 2.28% with planting realization of 89.34 thousand hectares from 87.36 Research Method thousand hectares, while the non centre provinces in general experienced the The research of shallot agribusiness model behavior is carried out using increased acreage compared to 2016. The realization of shallot harvest’s size qualitative and quantitative methods through key informant interviews, literature area in January – July 2017 was 84.89 thousand hectares or 2.64% lower than studies, and digging the secondary data. The explanatory survey is also done to previous year of 87.19 thousand hectares. The same thing happened in shallot delve the phenomenon and issues related to changes in shallot chain supply. Data harvest realization in January – July 2017 in 6 central provinces. In 2017, the obtained from focus group discussion (FGD) were analyzed by descriptive method harvest area of shallot was 79.08 thousand hectares or down 2.87% compared to and Systems Dynamic. System Dynamics is one of the methodologies used in the the same period in previous year that reached 81.41 thousand hectares. The systems approach which utilizes computer devices to help reviewing, analyzing, realization of shallot harvest in provinces of West Sumatra, West Java, and and solving complex problems by focusing on analysis and policy design [4]. [5] Central Java increased more than 100% compared to last year, while 3 other explains that System Dynamics methodology can be properly used for problems provinces did not. The increases of shallot harvest area in 2017 compared to 2016 which have traits of: (1) dynamic properties (changing over time), (2) the structural were 18.92% in January, 14.25% in March, and 11.90% in April [1]. West Java phenomenon contains at least one feedback structure. province can be considered as one of the shallot major producers with the centres spread in some areas of Cirebon Regency, Bandung Regency, Garut Regency, Result and Discussion and Majalengka Regency. Among others, Majalengka Regency has level of The Shallot Supply Chain Phenomenon in Majalengka Regency Horticulture productivity which increase each year with an average rate of 7.38%. The average commodities are expected to meet the needs of demand and consumption in the of shallot productivity in Majalengka Regency in 2016 was 9.84 tonnes/ha [2]. country as well as abroad, either through traditional markets, modern market, or International Journal of Agriculture Sciences ISSN: 0975-3710&E-ISSN: 0975-9107, Volume 10, Issue 16, 2018 || Bioinfo Publications || 7011 Model Behaviour of Shallot Supply Chain in Majalengka Regency export [7]. Shallot is one of the horticultural commodities which has a high Model Behavior of Local Market Shallot Toward Partnership strategic economic value and large demand that goes along with the increase of Shallot agribusiness has already formed a partnership with Kapalindo but the population. Thus, it has the potential to become a source of income for farmers. result was quite far from expectation or non-optimal in which farmers had low Shallot at peak harvest experiences a very low price which causes the price commitment to the partnership. Shallot supply chain has a huge potential of fluctuation. [8] in her research explains that price fluctuation, aside from the over partnership since the production raised. Partnership with structure market supply at peak harvest, occurred due to the shallot imports, price fluctuations of assumed to have price certainty and guarantee of marketing. Reality based on pharmaceuticals and fertilizers, the influence of climate anomalies and the role of field observation showed that most of shallot farmers sell their products to local middleman. The phenomenon seen from shallot supply chain is the excessive role market retailer than do partnership through cooperative or farmer groups. of middleman which reduces farmers’ income. The shallot supply chain mapping Reasons of why shallot growers in Majalengka Regency are not able yet to sell in either lowland, medium, or highland of Majalengka Regency shows that farmers their products to other profitable markets or do partnership with other markets, still depend their market conditions upon the wholesalers. The actors involved in even a structured one are (1) shallot agribusiness has not yet had a cooperative shallot supply chain consist of shallot farmers, farmers’ groups, middlemen, which support shallot marketing, (2) farmer groups or farmers groups association Kapalindo partners (limited in medium area), traders/collectors, local wholesalers, and even agribusiness sub-terminal (STA) have not yet taken a role in assisting in-between regions wholesalers, central market traders, retailers, and consumers. shallot marketing, (3) the insistence of economic needs makes shallot farmers depend their market on wholesalers or collectors, (4) there is almost no shallot Diagram of Sub-Model in Shallot Agribusiness Supply Chain shed for storage and drying process is still done manually (5) the high cost of Interaction and interconnection of some variables and complex causal relations in harvesting and post-harvesting makes farmers