Value chain analysis of pepper product of the Central Highlands

Abstract

The paper applies the value chain approach of GTZ (2007) and M4P (2008) to describe the diagram and economic analysis of the Pepper value chain of the Central Highlands. Research indicates that the main actors in the central highland pepper value chain are farmers, traders and export processing enterprises. In addition, the study also analyzes the net value added of each agent and chain across two market channels. The results show that the total value chain of pepper with no intermediate actor is higher than that with intermediate agent. Farmers have the highest incremental cost, but the net value added per one year is not high, accounting for only 0.23% of the total net value added. Processors have the highest net value added, accounting for 99.56% of the total net profit. Therefore, the study proposes measures for sustainable development and value added value enhancement of the total value chain of Central Highlands pepper.