Corn Supply Chain Management Optimization: Upstream-Downstream Integration Strategy And Sustainability Implementation

Abstract

Corn plays a strategic multidimensional role, not only as a food ingredient but also as animal feed and industrial raw materials. However, the corn supply chain in Indonesia still faces various complex challenges that lead to inefficiency, price fluctuations, and import dependence. This study aims to map and analyze the structure, performance, and key challenges in the Supply Chain Management (SCM) of corn agribusiness in Indonesia, and to formulate strengthening strategies to create an efficient, resilient, and sustainable supply chain. The study used a qualitative approach with a systematic literature review of scientific publications, government reports, and recent policy documents. The analysis shows that the corn supply chain involves many actors with a fragmented structure, ranging from farmers, collectors, wholesalers, the feed industry, and retailers. The main challenges identified are upstream (limited farmer access to quality inputs, low productivity, and climate vulnerability), midstream (supply chain dominance by middlemen, poor logistics and storage infrastructure, and high post-harvest losses), and downstream (extreme price fluctuations and dependence on the large-scale feed industry). Based on these findings, the proposed strengthening strategies are: (1) Vertical integration through the development of equitable core-plasma partnerships between industry and farmers; (2) Supply chain digitalization through e-marketplace platforms and blockchain technology for transparency; (3) Investment in and modernization of logistics infrastructure (silos, dryers, transportation); (4) Implementation of an effective Government Purchase Price Policy (HPP) and enforcement of trade regulations; and (5) Diversification of downstream markets towards the processed food industry and bioindustry. The integrated implementation of these strategies is expected to strengthen national food security, improve farmer welfare, and reduce dependence on imports.