Analysis of Value Chain Model of Sheep-Fattening Business in Langkat District

Abstract

Aims: To increase the beef cattle business by minimizing business production costs. Study Design: This research begins with preliminary studies such as conducting literature studies, problem identification, needs analysis, and system identification. Then conduct field observations and expert interviews. Best practice value chain analysis consists of several steps, which are both descriptive and analytical. Value chain analysis describes the overall market in which a particular value chain operates. Place and Duration of Study: The research was conducted from November 2022-January 2023 in Sei Bingai District, Langkat Regency. Methodology: The method used in this study is value chain analysis through mapping Hayami's value chain and added value. Results: The value chain model for fattening sheep in the research area can be applied to improve performance through efficiency, integration of actors, and distribution channels to deliver to consumers. Based on data processing and analysis results, it is known that the problem of sheep value chain management is a constraint on resource input in the form of a shortage of sheep supply, so Langkat Regency still depends on supplies from other regions. Conclusion: Mapping a value chain model based on actual business processes requires designing a supply chain solution to address critical aspects that hinder the smooth management of the sheep value chain.