Designing business models for rural agroindustry to increase the added value of coconut
Suci Wulandari (a) Jelfina C. Alouw (b)

(a) Indonesian Center for Estate Crops Research and Development
(b) International Coconut Community

Abstract

Indonesia is the world^s largest coconut producer, where smallholder plantations play a significant role. Most coconut processing at the farmer level and using traditional techniques. Whole coconut and copra are primary product sales, and income-generating from coconut farming currently very low because there is no by-products processing. The integrated coconut industry is one strategy to produce processed products with added value by utilizing all product components. Implementing a rural-based integrated coconut industry faced several constraints. This paper aims to analyze the constraints of increasing coconut added value, identify the business model for coconut rural agroindustry development, and develop a support system model for implementing the business models. Three business model patterns can be built, distinguished by business model structure, role sharing and risk management. The actors involved are farmers, farmer groups or cooperatives, and small-medium enterprises. The development of a business model in the integrated coconut industry also requires an innovation system that allows the transfer of knowledge and technology. The innovation system focuses on activities of capacity building, technology transfer, market access, and financial.

Keywords: coconut, agroindustry, rural, business model

Topic: Agricultural Institutions Development