How Is the Production Chain for Indonesian Mangosteen Formed?

Supply Chain:

• Farmer -> Area collector (independent or cooperatives) -> Main warehouse or Packing house -> Local port -> Destination port.
• Due to covid-19, it became difficult for small and medium-sized mangosteen farmers to export directly due to their limited supplying capacity. As a result, the small and medium-sized farmers have turned to alternatives such as selling their mangosteen production to big-sized local suppliers who have regular order contracts with buyers. Another option is selling the mangosteen production to local cooperatives (area collectors). It is beneficial for farmers to sell to cooperatives because they purchase at higher prices than local suppliers. 

• A co-op (cooperatives) is a group of farmers who want to export directly but still need a packing house for market demand stability.

• While it is cheaper to find a good co-op, operation procedures are not as potent as a packing house. Furthermore, the logistic costs of co-ops are not as competitive as that of a packing house.
• Suppliers and farmers can export directly without hiring intermediaries, but it is more profitable for suppliers and farmers to sell to cooperatives.
  
• The Indonesian government is pushing the co-op system so that farmers sell their mangosteen to packing houses, processors, or co-ops.
  
• The government is trying to register more packing houses that export to China to increase exports (not only mangosteens).