Inclusiveness Analysis of the Beef Cattle Value Chain in Central Java Province

Abstract

Abstract Blora Regency of Central Java Province initiated the development of strategic areas for beef cattle commodities in Indonesia. The majority of the region’s farmers are smallholders who operate household-level livestock businesses. While the involvement of small farmers in the value chain for these activities is essential, it is regrettable to note that their participation is not optimal. Therefore, this study used an inclusive business model approach aimed at analyzing the inclusiveness of farmers using a link methodology as well as identifying the inclusiveness factors of smallholders. Undertaking a comprehensive evaluation of the principles underpinning a new business model (NBM) is regarded as a valuable and effective means of fostering inclusivity and equality among all relevant stakeholders involved in the business. The NBM consists of six principles including collaboration across the entire supply chain, effective market connectivity, appropriate and transparent governance, accessibility to services, inclusive innovation, and performance measurement. Respondents were selected based on census data. The results show that the inclusiveness of farmers is still low in standardized and transparent governance, inclusive innovation, and outcome measurements. Enhancing farmers’ inclusiveness includes improving their performance and innovation, establishing market linkages, providing non-financial services, fostering value chain collaboration, offering financial assistance, and monitoring and evaluating the impact of their initiatives.