Raw material handling on Raw material handling on Agroindustrial productsAgroindustrial products

Raw material handling at the Fish processing

Classification of raw material

Simple handling of raw material

Direct and quick handling of raw material

Nata de coco product

Processed fruit products

Research Findings on Research Findings on Procurement SystemProcurement System

Most of SMFPIs obtained raw material from market. In certain season it was supplied from other district.

Most industries explained quality requirement

Price differentiation because of quality of raw material

0

10

20

30

40

50N

umbe

r of

SM

FPIs

Market Ow ned Contract Farmers Middlemen

Sources of raw material

0

5

10

15

20

25

30

35

40

45

Num

ber

of S

MFP

Is

Price protection Price

dif f erentiation

Quality

explanation

Communication

with f armer

Issues related to raw material procurement

Preparing raw material for fermented coconut water (nata de coco product)

Raw material

Quantity of raw material was the important factor

The middlemen have strong role in raw material availability

0

0.5

1

1.5

2

2.5

3

3.5

4Le

vel o

f pe

rcep

tion

Quantity Quality Continuity Competition Transport Storage

Perception of raw material factors

3.05

3.1

3.15

3.2

3.25

3.3

3.35

3.4

3.45

3.5Le

vel o

f pe

rcep

tion

Buying process Price decision Materialavailability

Involment of middlemen n=63

Most of SMFPIs have 11% to 20% total defective products mainly due to raw material quality, use of old machinery and equipment and lack of operators skills.

Raw material was the most important factor among processing factors

0

5

10

15

20

25

30

35Nu

mbe

r of S

MFP

Is

0-10% 11-20% 21-30% 31-40%

Percentage of defective products

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4

4.1

Per

cept

ion

leve

l

Raw material Market Transportation

Processing factors

Comparation between SMEs Comparation between SMEs and BEsand BEs

Results..Results..

Procurement of raw material

0

10

20

30

40

50

60

70

80

90

Perc

enta

ge

Market Ow n Contracting Farmers Middlemen

Raw material procured from

BFPIs

SMFPIs

• BFPIs use a contract system to reduce risk because of large raw material requirement.

Raw material supplies practicesRaw material supplies practices

0

10

20

30

40

50

60

70

80

Perc

entag

e

Price Protection PriceDifferentiation

Quality Communicationw ith farmers

Raw material activitiesBFPIs

SMFPIs

BFPIs communicate to farmer and midlemem for price, quality and delivery time

Good storage to keep good quality of Good storage to keep good quality of raw materialraw material

Processing factors..Processing factors..4.22

4.05

3.78

3.62

4

3.59

3.2

3.33.43.5

3.63.73.83.9

44.14.24.3

Perc

eptio

n le

vel

Raw material Market Transportation

Factors

BFPIs

SMFPIs

• Raw material remains the foremost factor in determining processing efficiency

• Transportation is vital to facilitate and support procurement of raw material for processing and bring finished product to the market.

Control activitiesControl activities

0

10

20

30

40

50

60

70

80

90

100

Perc

ent

age

Hy giene Nutritional

Quality

Contamination

lev el

Temperatur

control

Chemical

composition

Packaging

Quality control activity

BFPIs

SMFPIs

• Large production quantity and markkets makes QC an crucial activity for BFPIs