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RISK ANALYSIS ON THE CASSAVA VALUE CHAIN IN CENTRAL LAMPUNG REGENCY
The Central Lampung Regency is the center of cassava production in LampungProvince, the Indonesia’s largest cassava-producing province. Cassava has muchpromise; however, various risks arise throughout the value chain. Risks in theagricultural sector, including cassava farming, are unavoidable and severely impactstakeholders and consumers. This study aimed to identify the risks and the mosteffective mitigation measures for the cassava value chain. This research wasconducted using the House of Risk (HOR) method, divided into two phases:HOR 1 and HOR 2. It involved 286 samples encompassing 263 farmers, sixtraders, three tapioca industries, eight non-tapioca industries, and six financialinstitutions. The risks were determined through the Supply Chain OperationalReference (SCOR) model. The results unveiled several priority risks in the cassavavalue chain, consisting of unpredictable weather changes, scarcity of fertilizers, theabsence of farming standards, limited capital, delivery technical problems, pricefluctuations, negligence of the workforce, default credit, and lack of customer orfarmer knowledge leading to confusion. Furthermore, the risk mitigation actionscovered preventing the risks of cassava farming; applying appropriate technology;utilizing production, marketing, and financing system assistance; preventing therisks of cassava trading business; implementing a structured market system;developing access to financing, institutions, and markets; developing marketinginfrastructure; developing adaptive farming; monitoring during the credit period;socializing risk management to employees; and providing institutional, financing,and production assistance.
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