RJOAS April 2025
by Widjaksono Suko, Prasetyo Edy, Mukson (Masters of Agribusiness, Faculty of Animal and Agricultural Sciences, University of Diponegoro, Semarang, Central Java, Indonesia)
Demak Regency is the highest guava producer (39%) in Central Java Province - Indonesia, especially in the Wonosalam District. Increased productivity during the harvest leads to lower prices and rejection of products from collectors and traders. This condition is the background for the surrounding community to process guava into products that have long durability, but the processing industry in Wonosalam District is still limited. This study aims to analyze the guava supply chain in the Wonosalam District. The research method used a survey with a total of 98 farmers, 4 retailers, 4 collectors, farmer groups, the Department of Agriculture and Food, Field Agricultural Extension Officers, and Small and Medium Enterprises. Sampling techniques are simple random sampling, purposive sampling, and snowballing. The analysis carried out includes the Guava Supply Chain Stages and Guava Supply Chain Flow. The analysis techniques used are descriptive, distribution margin, and farmer's share. The results of the study show that the farmer route to out-of-town wholesalers is the most effective because there are few intermediaries and provide greater profits to farmers.
Agribusiness is an activity that includes the handling of agricultural commodities in terms of production, processing, distribution, and institutions. The agribusiness system requires all sub-systems to work in an integrated manner to optimize profits for all supply chain actors (Zainuri & Sjah, 2023)(Nebri et al., 2024). The supply chain of agricultural products is the entire production process, starting from cultivation, processing, distribution, distribution, and sales to the products produced in the hands of consumers (Purwandoko et al., 2019). The supply chain has a very important role in agriculture in terms of the level of efficiency in distribution (Anjasmara & Subari, 2023). An efficient and effective supply chain can reduce procurement costs, increase profits, and become a source of competitive advantage (Mapgigau et al., 2023). One of the horticultural commodities that received development priority in Demak Regency is guava.
Guava (Syzygium aqueum) is one of the priority horticultural commodities in the Demak Regency. BPS data (2023) shows that Demak Regency is the largest guava producer in Central Java, with a contribution of 39% of the total provincial production during 2018-2022. The highest guava production in Demak Regency is in Wonosalam District at 67,166 quintals or 26% of the total guava production in Demak Regency in 2022. Although productivity tends to increase, the main problems faced are the decline in prices during the harvest and the limitations of the processing industry (Widyastuti et al., 2017). This condition requires the effectiveness of logistics in the supply chain to ensure smooth distribution.
Several studies that have been conducted related to the supply chain of agricultural commodities have shown differences in the types of commodities, such as corn, cayenne pepper, sugarcane, guava (Prasetyia et al., 2022), and rice (Fawwas Asrory et al., 2024). In addition, there is also research on the prototype of supply chain digitalization applications (Rahma et al., 2024). The research related to guava that has been carried out so far focuses more on the development strategy of guava agrotourism (Fitriyani et al., n.d.)(Umam et al., 2019), diversification of guava added value (Putri et al., 2022), and post-harvest handling of guava (Triyono & Rahmawati, 2021). Therefore, this study tries to conduct a study on guava commodities in Wonosalam District, Demak Regency, which aims to analyze the condition of the supply chain, which can be used as a basis for the local government to take a policy for the development of superior horticultural commodities in Demak Regency.
The research method used is the survey method, which is a data collection technique that involves asking respondents questions to collect information (Mainardes et al., 2012). The procedures that must be carried out in the implementation of the survey are determining the population, choosing the right or efficient sampling technique, and determining the tools to obtain data from sampling elements or units, such as interviews or questionnaires (Sugiyono, 2015). Sampling is a method of collecting data if there are elements of the sample being studied while samples are part of the population. Therefore, the number of samples must reflect the conditions in the field. This research is divided into 3 stages, namely production/cultivation system, processing, and distribution/distribution. The sampling techniques used at the production/cultivation stage are simple random sampling with 98 farmers and purposive sampling with resource persons, such as the Agriculture and Food Service (Horticulture Sub-Coordinator) and Agricultural Extension Officer. The sampling technique used at the processing stage is purposive sampling because the intended resource person is competent in processing guava commodities or Micro, Small, and Medium Enterprises (MSME) of Restu Wali. The sampling techniques used in the distribution stage are Simple random sampling to farmers and guava retailers, purposive sampling to Agriculture and Food Service, and snowballing to Guava Collector. The data used includes primary data with data collection techniques through questionnaires and interviews. Secondary data is obtained through document analysis in the form of guava productivity data from the Central Statistics Agency. The analysis carried out includes the Guava Supply Chain Stages and Guava Supply Chain Flow. The analysis techniques used are descriptive, distribution margin, and Farmer's Share.
This supply chain analysis describes the upstream and downstream activities in the guava business. The discussion consists of the stages and flow of the guava supply chain.
Guava farmers as producers are one of the primary supply chain actors in the guava supply chain in Wonosalam District. Guava farmers are responsible for guava cultivation, from the process of planting seedlings, fertilizing, plant care, and pest control to harvesting fruits. The guava farmers who became respondents in this supply chain study amounted to 98 farmers from 4 villages, consisting of 25 farmers from Pilangrejo Village, 25 farmers from Kendaldoyong Village, 24 farmers from Lempuyang Village, and 24 farmers from Sidomulyo Village. The recapitulation of the identity of guava farmers in Wonosalam District can be seen in Table 1.
Guava farmers in Wonosalam District, especially from the four villages above, are mostly 41-50 years old, with a percentage of 42%, for the last education taken by the majority of farmers is elementary school, with a percentage of 44%, and 37% of farmers make guava farmers the main job carried out. Guava collectors are intermediary traders whose role is to collect guava crops from farmers and then distribute them to a wider market. Collectors act as a liaison between farmers and wholesalers or retailers in the market. Collectors usually have an extensive distribution network and adequate transportation to send guava to various regions. They also play a role in determining the purchase price from farmers and the selling price to traders, thus affecting the guava trade value chain in the market. The collector respondents in this study totaled 3 from Pilangrejo Village, Sidomulyo Village, and Lempuyang Village, with identities in Table 2.
Guava collectors in Wonosalam District have an average age of 41-60, with the last education being elementary and junior high school. They make this work their main livelihood.
Guava retailers are merchants who sell guava directly to the end consumer in small quantities or at retail. Retailers used to sell by opening fruit stalls or small roadside stalls. Retailers get their guava supply from collectors or wholesalers, then sell it at a price that has been adjusted to make a profit. Retailers play a role in maintaining the freshness of fruit and sorting quality in order to meet consumer needs and satisfaction. The respondents of guava retailers in Wonosalam District in this study amounted to 4 people from Botorejo Village and Sidomulyo Village. The identity of these retailer respondents can be seen in Table 3.
Based on the study's results, the average guava retailer is between 31 and 60 years old, with the last education being elementary and high school. Guava retailers make this job their main source of income.
MSME are part of the guava supply chain in Wonosalam District, which plays an important role in producing processed products from guava so that the selling value is greater. The respondents of MSME in this study are the MSME actors who are active in Wonosalam District, especially Karangrowo Village with name "Restu Wali." As Entrepreneur, MSME actors make guava processing their main source of income.
Respondents from the Department of Agriculture and Food in the guava supply chain research are horticulture sub-coordinators and field agricultural extension officers who have authority and knowledge related to the development of guava commodities. The agency plays a role in providing information on policies, coaching programs, technical assistance, and regulations that support the guava supply chain in the area. The respondents were also able to explain the government's efforts to facilitate relationships between farmers, collectors, and retailers, as well as the strategy for developing guava distribution. Information from respondents is important to analyze the role of the government in strengthening the guava supply chain system. The identity of the service respondent can be seen in Table 4.
The respondents who provided their knowledge about the guava supply chain ranged from 41 to 60 years old. The service employees who contributed to this study had varied educations, from high school to master’s. The service employees' positions consist of field agricultural extension officers and Horticulture Sub-Coordinators who are quite knowledgeable about the development of the guava supply chain in Demak Regency.
A farmer group is a collection of farmers who are members of one organization that has the same interests and goals in cultivating plants. Farmers work together to share knowledge, experience, and resources to improve productivity and crop quality. This group is usually formed on the basis of the same domicile or agricultural area and receives guidance from the local agricultural office. Through farmer groups, members can more easily access government assistance and information on cultivation technology and strengthen their bargaining position in the distribution of their crops. The respondents of the farmer group interviewed in this study amounted to 1 person from Pilangrejo Village, 54 years old. The respondents were members of the Ngudi Makmur farmer group.
This supply chain analysis describes the activities of the guava business from upstream to downstream, so the discussion is divided into three stages: cultivation, processing, and distribution.
The guava cultivation stage explains the activities of farmers as producers who play an important role in managing farming businesses. These include land availability, planting, maintenance, and harvesting of guava. Maintenance in the cultivation stage includes fertilization and the eradication/prevention of pests and diseases.
Guava (Syzygium aqueum) is a fruit commodity with high economic value and commercial development potential. This plant is optimally planted in low—to medium-highlands (0-1500 meters above sea level) with rainfall of 500-3000 mm/year, a dry season of at least 4 months, and sunlight intensity of 40-80%. Optimal growth requires loose, humus-rich soil, pH 5.5-7.5, humidity 50-80%, and temperature 18-28°C (Lase et al., 2023).
A survey of 98 farmers showed that they used privately owned land for guava cultivation, thus eliminating rental costs in production. The average land area is 124 m², with the largest land reaching 1,600 m² and the smallest 3 m². The majority of farmers (81%) own land below the average, while 19% own land above average.
The success of guava cultivation depends on the selection of quality seedlings, which can be obtained through purchase or independent nursing. The optimal seedlings come from healthy broodstock that is at least 5 years old with a height of 3-10 meters, a stem diameter of 30-50 cm, and pest-free. Planting media requires a polybag or pot with a minimum size of 60 x 70 cm or a diameter of 60-70 cm. The seedlings purchased must come from trusted breeders with quality certification and varieties that are suitable for land conditions, considering that errors in the selection of new varieties are detected 7-10 months after planting (Supranto, 2007).
Ready-to-plant seedlings are characterized by a stem diameter of about 2 cm, a height of at least 50 cm, an age of at least 4 months after transplantation to a polybag, and 12-16 fresh green leaves. Healthy plants do not show symptoms of pest infestation, such as brown stains due to anthracnose or yellowing of leaves due to nutrient deficiencies.
Based on a survey of 98 farmers in Wonosalam District, the number of guava tree ownership varies from 1 to 150 trees, with an average of 13 trees per farmer. The majority of farmers (77%) had a below-average number of trees, while 23% had an above-average number of trees.
Guava maintenance includes several critical aspects: fertilization, pest/disease control, and plant care. Weed weeding is carried out every 2-3 months to avoid nutrient competition. Fertilization is carried out in stages according to the age of the plant, with the first year using NPK (15:15:15) as much as 250 grams/tree per three months. To increase productivity, manure that has been fermented for a minimum of one month is applied for six months of the growth period, followed by nitrogen fertilizer for the formation of productive branches (Anggraheni et al., 2019).
Irrigation is carried out regularly, especially during drought, using a drip system (3-4 liters/day of vegetative phase, 6 liters/day of fertilization phase) or manual watering in the morning and evening. Pest and disease control is implemented in an integrated manner through a combination of technical, biological, and chemical culture methods when necessary, with a focus on key pests such as fruit flies, stem borers, and leaf-eating caterpillars, as well as fruit rot and anthracnose diseases (Kuswandi, 2008).
Optimal cultivation techniques include weeding weeds accompanied by loosening the soil around the base of the stem to increase nutrient uptake. Fertilizing is carried out at the beginning of the rainy season or the end of the dry season through holes around the stem, with a combination of manure, Urea, TSP, and KCl according to the recommended dosage. Cultivation facilities include well-drained loose land and skilled labor, while infrastructure includes agricultural equipment, superior seeds, fertilizers, and pesticides available at nearby agricultural stores.
Ripeness characterized by a change in skin color and hardened texture, generally 3-4 months after flowering. The harvesting method uses special pruning shears to prevent damage to the fruit and branches. According to market standards, the implementation of standardized cultivation techniques can produce productivity of 20-30 kg/tree/year (Aprillia et al., 2021).
Guava farmers in Wonosalam District harvest 2-4 times per year with significant productivity. According to the survey, productivity varies between 5 and 417 kg/tree/year, with an average of 205 kg/tree/year. The average harvest weight reaches 836 kg per cycle, resulting in a total annual productivity of around 2,322 kg.
Guava varieties cultivated in this area include Pomegranate Guava (selling price of Rp7,000-20,000/kg), Citra Guava (Rp12,000-26,000/kg), and Green Guava (Rp8,000-13,000/kg). The main obstacles faced by farmers include distribution difficulties during the harvest, unstable prices, flower and fruit loss, attacks by plant pest organisms such as fruit flies and rats, and the lack of off-season technology to manage harvest times.
MSME increases the economic value of guava through the processing process. This activity begins with the selection of quality raw materials from farmers or collectors, followed by sorting and cleaning, and then transformation into various value-added products such as syrups, jams, sweets, dumplings, and packaged drinks.
The "Restu Wali" MSME in Wonosalam District, a legal entity since 2018 with operations starting in 2021, markets products under the "Restu Wali" brand that has been registered with IPR. Each production processes 10 kg of guava into a variety of products, such as guava juice, syrup, and sweets, with the selection of ingredients based on texture (guava for sweets, all types for syrup). The production of syrup takes two days, and the capacity of 20 kg of raw materials is used to produce 18 bottles (370 ml). At harvest, the daily production increases to 25-30 kg of raw materials, yielding 10 kg of sweets (7 packages), 10 kg of juice (25 bottles), 10 kg of syrup (18 packages), and 10 kg of dumplings (14 packages). Product distribution includes weekly delivery to the Demak City souvenir center (50 bottles of syrup and 50 packs of dumplings), orders from outside the city through the office, and direct sales at the production site.
The discussion of the distribution stage for fresh guava is divided into three based on its type: Citra guava, pomegranate guava, and green guava. It also explains the distribution of processed guava products.
The Citra guava supply chain forms five levels that connect farmers with the end consumer. Based on the results of the research, distribution patterns and prices at each level are clearly written. The distribution process starts with farmers as the main producers, who set an initial price of Rp 15,000 per kilogram. Farmers then distribute their products through three channels: small collectors (purchase price of Rp 19,000/kg), large collectors (purchase price of Rp 17,000/kg), and wholesalers/wholesalers outside the city (purchase price of Rp 19,000/kg). Furthermore, collectors distribute guava to retailers at a price of Rp 20,000/kg before finally reaching the final consumer at a price of Rp 25,000/kg.
An analysis of supply chain effectiveness indicates that the second level provides optimal value for farmers. At this level, farmers get the highest selling price of Rp 19,000/kg compared to other distribution channels. In contrast, levels four and five tend to be more profitable for distributors and retailers than manufacturers. The pricing structure shows an increase in value at each level, reflecting the profit margins taken by each actor to cover operational costs. This guava product also reaches out-of-town markets such as Jakarta, Madiun, Solo, Tegal, Surabaya, and Yogyakarta, with a total supply chain value ranging from Rp 20,000 to Rp 25,000 per kilogram.
The distribution pattern of pomegranate guava is the same as that of citra guava, but there is a difference in price. Farmers initiated the distribution flow as primary producers who set a basic value of Rp 10,000 per kilogram. In the distribution process, farmers allocate products through several distribution channels, including small-scale collectors, large-scale collectors, and wholesalers operating outside the city area. Transactions at this stage show price variations between Rp 12,000 to Rp 15,000 per kilogram.
Supply chain analysis shows that the second level of distribution has optimal value for producers. At this level, farmers receive the highest compensation of Rp 15,000 per kilogram. In contrast to these conditions, at the next level, the proportion of profits is more inclined to favor downstream distribution actors, such as wholesale distributors and retailers. When the product reaches consumers, it reaches a final value of Rp 25,000 per kilogram.
The dynamics of economic value in the supply chain show a consistent increase in prices at each stage, reflecting the accumulated operational costs and profits set by each supply chain actor.The distribution structure of green guava has five levels that connect producers with end consumers. The process starts with farmers, who set a basic price of Rp 10,000 per kilogram. Farmers then distribute their products through several channels, including small collectors, large collectors, and out-of-town wholesalers, with price variations between Rp 10,000 and Rp 17,000 per kilogram.
The analysis results show that the second level in the supply chain provides optimal profits for farmers, with a selling price of Rp 17,000 per kilogram. In the next level of distribution, the proportion of profits shifts to downstream actors such as wholesalers and retailers, which reduces farmers' profit potential. The price increase at each level reflects the accumulated operational costs and profits of supply chain players, with the final price reaching Rp 20,000 per kilogram.
A comparison of the distribution patterns of the three types of guava shows similarities in supply chain structure, with the main difference in initial pricing being influenced by the level of cultivation complexity. The second level is consistently the most effective path because it provides maximum profits for farmers and involves fewer intermediaries, thus guaranteeing better product quality. The more actors in the supply chain, the higher the potential for social problems to arise (Iswahyudi & Sustiyana, 2019), making the second level the most efficient distribution channel.
MSME of "Restu Wali" processes guava into several products, such as dumplings, syrup, sweets, guava juice, and juice. All of these products are made from guava taken from collectors in Ploso. One guava picking can bring 25-30 kg of guava for one production. Guava processing is carried out every harvest, which is about once every 1.5 – 2 months, with the amount of production carried out 2 times with the weight of the guava carried. This guava, weighing 25kg, will produce 40kg of processed products that are ready to be sold. Details of the purchase price to the selling price of the product are explained in Table 6.
The results of the interview showed high profitability in guava processing, with an income of Rp 1,060,000 per production from a capital of Rp 100,000. Product distribution is carried out through a souvenir shop on the Demak City Ring Road, which routinely sells 50 bottles of syrup and 50 packages of dumplings per month with a sales rate of 100%. The distribution also includes direct sales to visitors and delivery for orders from outside the city.
Guava products are distributed through three main channels, starting with farmers as primary producers. In the first route, farmers distribute their production to collectors who function as collectors and intermediaries in the distribution chain. In the second channel, farmers distribute directly to retailers, who then market the product to the end consumer. In the third channel, agricultural products are distributed through collectors, who then distribute them to MSME actors for further processing or resale. These distribution systems offer several alternative distribution channels, with each channel having an important contribution in facilitating the distribution of agricultural products to different market segments (Rahman & Qureshi, 2007).
The agricultural system in Demak Regency features a comprehensive communication network between various stakeholders. The flow of information shows that there are two main actors, namely Farmers and MSME Actors, who interact with various supporting institutions.
Farmers establish two-way communication with the Ngudi Makmur Farmers Group and the financial institution Bank Mekar (PNM). Meanwhile, the Demak Regency Agriculture and Food Office functions as an information coordination center that connects leading academic institutions such as Brawijaya University, Diponegoro University, and Sultan Agung University.
MSME actors build information networks with government institutions, including the Central Java Provincial Balatkop, Demak Regency Bappeda, the Ministry of Agriculture, and the Central Java Provincial Bapeltan. This network also involves the University of Muhammadiyah Semarang, which is connected through the Demak Regency Agriculture and Food Office. The Village Government also participates in this information flow by establishing direct relations with the Ngudi Makmur Farmers Group.
This information flow structure reflects the existence of an integrated coordination and communication system that connects the education sector, government, banking, and business actors in an effort to support the development of agriculture and MSMEs in the Demak Regency. This pattern illustrates how the exchange of information between stakeholders contributes to the development of the agricultural sector and the development of MSMEs in the region.
Financial flows in the agricultural sector and MSMEs show a comprehensive funding structure with two central actors. Farmers have access to diversified funding through various banking institutions, including Bank Ikan, Bank Amarta, Bank Mekar (PNM), Bank BRI, and Bank Syariah. Farmers' financial relationships are also established with retailers and collectors who have a strategic role in the distribution chain of agricultural products. This financial network indicates that farmers have access to a variety of financing instruments to support their agricultural production activities.
On the other hand, MSME actors receive financial support sourced from two main institutions, namely SOEs and the Ministry of Agriculture. SOEs contribute to providing capital and financial support for MSME business expansion. At the same time, the Ministry of Agriculture allocates financial assistance through a series of MSME empowerment programs in the agricultural sector. This financial flow framework reflects the existence of an integrated financial support mechanism, both from the banking sector and government institutions, which aims to ensure the continuity of business operations at the farmer and micro-industry levels.
Analysis of the guava supply chain in Wonosalam District, Regency, shows that the distribution channel of farmers to out-of-town wholesalers (second level) is the most profitable because of the lack of intermediaries, increasing farmers' profits and maintaining product quality. The price difference between types of guava is only based on the level of difficulty of cultivation. More and more distribution actors are reducing farmers' profits and increasing social problems.
Analysis of the guava supply chain in Wonosalam District shows several flows of goods and services that occur between distribution actors, namely the flow of products, information, and finance. Based on the flow formed, it can be seen that each distribution actor is related to each other, ranging from producers, MSME actors, and private institutions to the government.
The proposed recommendation is to increase the network that is direct to farmers so that this will further encourage an increase in the income of guava farmers in Wonosalam District, Demak Regency.
Original paper, i.e. Figures, Tables, References, and Authors' Contacts available at http://rjoas.com/issue-2025-04/article_02.pdf