Effectiveness of Value-Added Input-Output Method in Upstream and Midstream Supply Chain Network of Sunflower Agro-industry

Abstract

Abstract Sunflower (Helianthus annuus L) is an annual shrub that grows up to three meters high. Sunflower agro-industry has high potential economic value. Sunflower seeds produce oil that can be extracted and used as a raw material in the food, pharmaceutical, bioenergy, and cosmetic industries. The problem is the low availability of superior local seeds, so it must be imported. The impact of imports is the low value-added. Therefore, this study aims to determine and measure the value-added of sunflowers in the upstream and midstream networks. The methods are Hayami and BPS input-output, also aims to identify the effectiveness of these two methods.. The results of value-added on sunflower seeds, cooking oil, herbal oil, and animal feed by the Hayami and the BPS input-output each are IDR6,000 (40%) and IDR24,005,528 (20%), IDR4,900 (26%) and IDR41,377,013 (23%), IDR21,000 (60%) and IDR117,653,333 (38%), IDR3,500 (86%) and IDR23,996,000 (100%). it is better to calculate using the BPS method because it is more detailed and clear in all aspects of the sunflower agroindustry, while using the hayami method only focuses on sales and labor. In the future, this research will be developed by designing sustainability improvement to reduce environmental impacts; performing value-added calculations for derivative products in the downstream supply chain network; also developing a decision support system.