How Is the Supply Chain Formed for Processed Durian?
Farm -> Factory -> Export/Trading company
Most farmers do not own packing houses, food processing facilities, or trucks. Therefore, do not export directly. Most have limited knowledge when it comes to export processes and client communication. Farmers are usually not involved in the process after harvesting. Intermediaries play a considerable role in the value chain as farmers are not confident enough with their crops, communications, and negotiations. Big farms usually own packing facilities or affiliations with other companies that can provide packing facilities for them, but not all. The value chain of processed durian starts from the consolidation and buying of fresh durian as the main ingredient for food processing and involves food processors and other service providers. The processing of durian could be categorized into two, namely: primary and secondary processing. The primary processing of durian refers to the processing of durian fruit aiming to lengthen its shelf life and preserve its form, which involves fruit extraction and freezing. Two main products in primary processing are the vacuum-packed frozen durian mainly used for processing and the blast frozen durian processed for export. While on the other hand, secondary processing refers to food processing, transforming durian into different value-added products. Secondary processed durian products refer to durian jam, candies, and other pastries. Secondary processing involves using other food ingredients such as milk, flour, and sugar to produce different durian delicacies.
Value Chain Map of Processed Durian – Food Products
