Application of value chain analysis to corn (Zea mays) commodities in Indonesia: Integrative review

Analysis of the value chain begins with raw materials and finishes with a product that is ready for commercialization. The objective of this article review is to determine how chain analysis (value chain) is used to corn commodities in Indonesia. In the analysis of the corn value chain, farmers, middlemen, inter-island traders, the feed industry, and breeders are considered stakeholders. After the feed has undergone the drying process and been converted into feed, the profit margin is the highest at IDR 1,600, while the profit margin for middlemen or breeders purchasing directly from farmers ranges from IDR 350 to IDR 1,000.


Introduction
Value chain is a management concept in which the business is considered as an activity chain that converts inputs into customer-valued outputs.According to value chain analysis, the corporation is a part of the product's value chain.The product value chain is an activity that begins with raw materials and continues through handling and after-sales service.This value chain contains activities that result from supplier relationships (supplier links) and customer relationships (consumer linkages) [1].Value Chain Analysis is of utmost importance to the organization, as it enables the selection of numerous stages of the value chain where enterprises can add value or reduce costs for customers.Porto reduction or increased value (value added) can increase the competitiveness of companies.Not only does value chain analysis (value chain analysis) have a profit, but it may also improve a company's ability to identify and optimize operations that create competitive advantages and high profit margins.Companies can profit from a single activity through value chain analysis, which will form competitive advantage and increase holistic earnings [2]. 3 chain analysis stages: a) Decompose each business process into more specific activity parts.b) Examining other aspects of the more specific activities connected to the costs incurred, which may involve time or financial expenditures.c) Changing the costs gained in the previous stage into information about the company's competitive strengths and weaknesses.Analysis of the value chain is performed collaboratively from each dimension of business processes, and each dimension is related to the others, as well as the internal and external environmental dimensions of the company.Analyzing the costs associated with a company's activities, such as purchasing raw materials, production, and marketing, is the purpose of value chain analysis.The purpose of value chain analysis is to determine the efficiency of each of these costs in a series of values [3].After rice, corn is a source of carbohydrates that can be used extensively by the community.In addition to serving as a food, corn may be turned into poultry feed, which contributes significantly to egg production and chicken meat production [2].Corn is a strategic commodity for Indonesia due to its many uses, including livestock feed (direct or processed), staple food for some residents (possibly a larger population) and snacks, industrial raw materials (starch, sugar, processed food), and energy (bioethanol).Half of the present use is as the main raw material in the animal feed industry [4].
Chicken feed a blend of maize, concentrate, and rice bran is a common practice among breeders, particularly those with a medium population size.Corn up to 50%, concentrate up to 53 %, and bran up to 15% are the proportions of feed commonly used to determine the size of laying hens based on the age of the chickens and the composition of feed.Feeding laying hens is an important aspect of their care.A value chain analysis (value chain) of corn commodities (zea mays) is required.).

Methods
The data collection technique used is to retrieve data from the research journal that applies the stages of the corn value chain analysis process.The next step is to analyze the benefits obtained by each value chain actor.

Raw material definition
The material must be related to the finished products because raw materials are utilized to produce finished products.The company's stockpile of raw materials is a valuable asset that plays a vital role in supporting production, thus optimal control is required.The corporation must maintain an inventory of raw materials that is neither excessive nor insufficient.Through optimal inventory control, the company can reduce inventory costs in order to meet its objectives [5].
Without raw materials, production will be hindered.Due to the importance of raw materials to the production process, the availability of raw materials must be considered.The purpose of raw material inventory is to fulfill future raw material requirements for the production process, so that the company may continue to create and meet the expectations of consumers.With the ideal inventory, a company will be able to identify how much raw material inventory is required so that it does not waste costs by balancing the needs of raw materials that are not too much or inventory that is not too small [6].
Therefore raw materials are the main factor that is important to the production process, if raw materials are not available then the production process can be hampered.The production department must carefully plan the stock requirements needed so that production can run smoothly and customer demands can be met.

Safety stock definition
Safety stock is the planning of production materials, apart from keeping raw materials available, this is also related to the production budget.As we know that the scarcer the raw material, the more expensive the price, therefore safety stocks must be carried out so that the production budgets remain appropriate.The purpose of safety stock is to anticipate a lack of inventory, so enabling a smooth production process, and to compensate for a delay in the arrival of raw materials.The raw material supply may be depended upon to ensure that the production process is not disrupted by material unpredictability [7].
Safety stock (safety stock) is an additional supply stored to protect against or maintain a potential shortage of products (stockout).The duration from the time a business places an order until the goods arrive is known as the order waiting time (delivery lead time).Delivery Lead Time is the time between the order and the arrival of the ordered raw materials [8].

Corn Production Result in Indonesia
Corn production of Indonesia sometimes fluctuates every year, corn production in Indonesia is also influenced by several factors including the weather factor.The top 10 producing provinces of corn in Indonesia are shown in Table 1.

Raw material inventory system
The inventory process is one of the activities in the sequence of activities related to one another in all of a company's production operations in accordance with what was planned in advance, whether it be in terms of time, quantity, quality, or cost [9].a) Quantity Re Order Point (Q/R System) system.The amount of inventory re -orderly is greatly reliant on the requirement for inventory for the conversion process, in reality the use of inventory of materials is never constant and always varied.b) Periodic inventory system.This system is a means to order constant time intervals, but the number of orders vary depending on how much use of the material between prior orders and the next time ordering time [10].

Corn Price Margin for Farmers, Collectors, Breeders and Feed Industry
The benefits of each value chain actor differ depending on what processes are carried out that can generate added value.The various benefits of value chain actors can be observed in 3.6.The party involved in the corn value chain 3.6.1.Farmer.Farmers are residents who give time and thought to farming, and once Gus made decisions regarding the farming process [18].Farmers are those whose primary source of income is agriculture.Farmers typically live two worlds in their daily existence.On the one hand, farming communities are typically rural and isolated from the rest of society.They take agriculture management in their villages very seriously and have an inward view orientation [19].Middlemen are individuals who purchase vegetables and crops from farmers as harvests.In addition to their role as purchasers, middlemen also play a crucial role in providing capital to farmers.Multiple roles of middlemen cause farmers' dependence (Megasari, 2019).Because of their wide social networks, middlemen play a important role in the agricultural marketing system.In addition, the social network held by middlemen is not owned by ordinary farmers, creating a dependency between the two parties [20].
3.6.3.Inter-island trade.Also known as inter-provincial trade, is the transportation of commodities from one region to another via road, sea, and air.The uniqueness of commodities in each region is a result of differences in natural resources, which stimulates trade across regions.In addition, trade across regions happens as a result of inter-regional ties, as one region cannot produce all the commodities required for the consumption of its region.[21].
3.6.4.Processing Industry (Feed Factory).The livestock feed factory is an agrbisnis enterprise that uses raw materials obtained from agricultural activity in the form of agricultural waste and by-products.Agricultural products have distinctive qualities, including seasonal production and vulnerability to damage.Therefore, the feed factory corporation must have a good management structure, both in the management of the availability of raw materials (procurement, distribution, and storage), production management, and marketing management, in order for all activities to be carried out efficiently and effectively [22].
3.6.5.Marketing.Marketing is the process of products or services to the general public.Marketing also refers to the process of marketing products or services, which includes everything from developing strategies to consumer perceptions.Marketing is the process of discovering and satisfying the social demands of humans.One of the most concise definitions of marketing is satisfying customer demands while generating a profit [23].
3.6.6.Cattleman.Animal Husbandry is the process of breeding and culivation cattle in order to reap the benefits and results of these activities.The difference between animal husbandry and maintenance, maintenance, and livestock care rests in the specified objectives [24].

Corn commodity value chain analysis
The average annual demand for corn for chicken feed in West Sumatra is 1,377,546 tons, although the average annual corn production is only 825,564 tons.According to the results obtained, the availability of corn raw materials for animal feed in West Sumatra is inadequate.The annual corn shortage as a source of poultry feed is 0.48 million tons.The author suggests that there is a need for a good land management movement and that the government should assist corn farmers with land effectiveness [25].

Analysis of the corn value chain as the primary raw material for animal feed, using PT. Charoend
Pokhpand as a case study.The results indicated that the monthly income of the company in the animal feed industry was Rp 33,732,995,337, and that the added value of the shelled corn processing sector was Rp 308/kg, with an added value to output value ratio of 4.83% [26].

West Sumatra corn marketing analysis as a basic source for laying hens.
The results indicated that the high purchase price of maize by feed mills had an effect on the market price at the level of pricetaking farmers.This has an effect on the high proportion of corn distributed to feed mills (62.5%) compared to corn distributed to farmers directly [27].

Case study on the added value of the corn supply chain for animal feed in the district of Konawe
Selatan, province of Southeast Sulawesi.According to the findings of the study, the supply chain in the South Konawe district has not been operating well.The analysis of added value in South Konawe Regency demonstrates that the added value of a commodity will be higher and more valuable if it is converted into animal feed ingredients, as seen by the highest added value obtained by the poultry feed business.The analysis of the margin value reveals that the biggest margin is produced when corn is processed into feed raw materials [15].3.7.5.Analysis of the maize value chain in the North Lombok district.According to the findings, the corn supply chain in Bayan Regency consisted of two channels: farmers selling to inter-island traders and farmers selling to village collectors.Farmers produce corn, then dry and peel it before selling it to village collectors and inter-island traders, among other tasks.Inter-island traders incur the highest marketing costs of IDR 830/kg and the lowest of IDR 395/kg [28].
3.7.6.Analysis of the corn value chain in the Toroh subdistrict of the Grobogan region.The result showed that the intermediary had the highest profit margin, whereas the analysis of the value chain revealed that processed maize obtained the highest profit margin after processing [12].3.7.7.Analysis of the corn value chain in the Sumbawa district.From upstream to downstream, the map of the corn commodity value chain shows that numerous stakeholders are involved in the corn business.As the most dominant actor in terms of quantity, farmers continue to have low bargaining leverage.For this reason, strategic interventions are required, such as procurement and distribution of seeds, improvement of distribution mechanisms that are more equitable, efficient, and timely, and financial management training for corn farmers, as well as the growth of downstream industries that drive demand for corn-based products [29].

Analysis of the maize community's value chain.
The quantitative analysis of the maize value chain revealed that local traders had the highest margin among value chain actors at 377,500 kg, or 36.17%.Each of the main actors in the value chain performs the main activities and supporting activities, while the main actors in the value chain of corn farmers in supporting activities, including infrastructure operations, are less organized [11].

Analysis of the corn value chain and strategies to increase farmer income in the Toba Sasmosir
Regency.The results revealed a total productivity of 59.32 kw/ha for corn marketing chains within and outside the district, such as Siantar and Medan animal feed factories.The Strategy for Management and Development of Corn Value in Toba Samosir Regency uses the ST strategy, specifically by developing a strategy that utilizes strengths to avoid threats, such as optimizing farmer groups as a means to increase farmer productivity via extension workers and skills in processing corn [14].

Corn production and marketing chain analysis in South Minahasa Regency, North Sulawesi
Province.The results indicated that the marketing channel for dry-shelled products had the highest price share %.In this instance, feed stores are important for providing production facilities and capital, and corn marketing is crucial [16].

Conclusion
Farmers, middlemen or collectors, breeders, feed factories, and marketing are the parties involved in the corn value chain analysis, according to the data and information presented above.The average profit margin (collectors, feed mills, and breeders) from direct purchases from farmers is between IDR 350 and IDR 1,000 / kilogram, and IDR 1,600 if the factory purchases with 18% moisture content and redries it.

Table 1 .
Provinces with the Largest Corn Harvested Areas in 2020

Table 2 Table 2 .
Corn price margin