Elimination Non Value-Added Chain: Case in Cassava Fermented Industry Bondowoso - Indonesia

Abstract

This study aims to determine the feasibility of SMEs of fermented cassava processing by identifying production costs and analyzing the value chain. Production cost have impact on determining the selling price. Analyzing the value chain of SMEs is useful for developing SMEs in Bondowoso and Jember Regency. These activities increase the added value of fermented cassava products and analyze the capacity of resources in developing SMEs. Result this research can provide alternative forms of support the regional government to develop the fermented cassava industry. Research method is a qualitative research conducted to collect and analyze data. The results show that there are non-value added activity. The activity includes the selection of raw materials, banana leaf sorting, and select baskets. If the industry can provide suppliers with criteria and quality standards, these activities can be eliminated.