The Analysis of Business Vulnerability in Rice Supply Chain in the Flood Prone Areas

Abstract

This study aims to analyze the vulnerability of the region toward flooding, describe the rice supply chain, analyze the vulnerability of businesses in the rice supply chain in flood-prone areas in Klaten Regency to support regional and national food security.The population of this study is SMEs who are in the rice supply chain in flood-prone areas in Klaten Regency. Purposive sampling technique was used here to get those who have experienced flooding three times. This study used primary data, namely data on regional vulnerability and business vulnerability for SMEs. To collect the data, the researchers applied direct interviews with SME actors supported by questionnaires and FGDs for deepening the aspects of vulnerability to flooding. The analytical tool used is descriptive and index. SMEs in the rice supply chain in Klaten Regency included farmers and rice fellers, mill, wholesalers, retailers and consumers. Wholesalers are the most vulnerable members of the supply chain, followed by retail traders and farmers, and mill. In addition, labor vulnerability is the highest type of vulnerability, followed by consumer vulnerability, capital vulnerability and supplier vulnerability. This finding implies that to improve companies’ resilience, so companies need to more attention to how they can prioritize to reduce companies vulnerabiliies. SMEs in the rice supply chain are an important element for maintaining food security.