The comparative performance of banana supply chains in East Kalimantan, Indonesia

Bananas are one of the most important horticultural crops in the Indonesian province of East Kalimantan. While the production of bananas has increased over the past five years, the production base remains fragmented and there is a lack of quality management systems throughout the supply chain. The emergence of supermarkets and specialist fruit shops has provided banana growers with alternative markets to the traditional wet markets which dominate the retail market for fresh produce. This paper reports on the results of a comparative analysis between three banana supply chains: the 'wet' market, supermarket and fruit shop chains that are located in Samarinda and Balikpapan, East Kalimantan. The outcomes of the research indicate that the returns to growers and collector agents were the same irrespective of the supply chain to which they belonged. The main reason for this is that bananas are a staple fruit in East Kalimantan and the specialty retailers, who have a relatively small presence in the market, are not able to create sufficient additional consumer value to have an effect on the traditional supply chain