SYSTEM OF RICE INTENSIFICATION (SRI) PRODUCT VALUE ADDED AND DISTRIBUTION CHANNEL ANALYSIS Case Study of Handling and Post Harvesting Processes in Sudimoro, Megaluh, Jombang.

Abstract

Indonesia was been predominantly an agricultural economy in which rice was been
the major crop and staple food. Great efforts were therefore being made to improve paddy
production and post production practices. This research was aimed to: 1)identify the added
value of paddy handling and post harvesting processes; 2) analyze profit margin gained by
farmer from selling off the paddy with and without handling and post harvesting process;
3)describe the variability of distribution channel and marketing institution of rice, husk and
bran. This research was conducted in Sudimoro village and used primary data collected
form 70 SRI (System of Rice Intensification) farmers. Research findings showed that the
amount of added value earned is less than 15%. The hulled rice added value is higher than
added value of husk and bran. There were three kind of distribution channel. The
marketing institution involved were farmers, brokers, rice milling unit (RMU), wholesaler,
distributor and retailer.