Logistics cost structure for exporting green bean from Indonesia to Singapore

In 2010, Indonesia and Singapore formed an agreement called ISAWG (Indonesia-Singapore Agribusiness Working Group). The purposes of the agreement are to improve the performance of Indonesian exports in horticultural products, to improve the quality and the quantity of fruit and vegetable exports, and to strengthen the cooperation between Indonesian and Singaporean traders. One of the main products that are exported from Indonesia to Singapore under this agreement is green bean from Magelang district, Central Java Province. This paper presents a mapping of logistics and supply chain network of the exported Indonesian green beans and an analysis of logistics cost structure from farmers to exporter. Data were collected from 100 farmers in Kaliangkrik, Dukun, Sawangan, and Pakis sub-districts. The results show that the cost structure consists of the costs of various activities for each stakeholder. It is found that activity with the highest cost were harvesting cost for the farmers, material handling cost for the collectors, and administration cost for the exporter. Statistical data analysis is performed to identify significant factors affecting the farming cost and logistics cost so as to recommend the cost-effective practices. Analysis results show that (1) not performing three activities, including making soil beds, setting mulches, and using the 2nd seeding, could reduce the farming cost without losing the yield of green bean; and (2) using motorcycle can lower the delivery cost from farms to pack house for the collectors.