Raw material handling on

Agroindustrial products

Raw material handling at the Fish

processing

Classification of raw

Simple handling of raw

Direct and quick handling of raw

material

Nata de coco
product

Processed fruit
products

Research Findings on
Procurement System

50

Most of SMFPIs obtained

raw material from market.
In certain season it was
supplied from other district.

Number of SMFPIs

40
30
20
10
0
Market

Ow ned

Contract

Farmers

Middlemen

Sources of raw material

45

Price differentiation
because of quality of
raw material

Number of SMFPIs

Most industries
explained quality
requirement

40
35
30
25
20
15
10
5
0
Price protection

Price
dif f erentiation

Quality
explanation

Communication
with f armer

Issues related to raw material procurement

Raw material

Preparing raw material for fermented coconut water (nata

de coco product)

Quantity of raw
material was
the important
factor

4
3.5

Level of perception

3
2.5
2
1.5
1
0.5
0
Quantity

Quality

Continuity

Competition

Transport

Storage

Perception of raw material factors

3.45
Level of perception

The middlemen
have strong role in
raw material
availability

3.5
3.4
3.35
3.3
3.25
3.2
3.15
3.1
3.05
Buying process Price decision

n=63

Involment of middlemen

Material
availability

Most of SMFPIs have 11% to

20% total defective products
mainly due to raw material
quality, use of old
machinery and equipment
and lack of operators skills.

35
30
Number of SMFPIs

25
20
15
10
5
0
0-10%

11-20%

21-30%

31-40%

Percentage of defective products

4.1
4

Perception level

Raw material was the

most important factor
among processing
factors

3.9
3.8
3.7
3.6
3.5
3.4
3.3
Raw material

Market

Transportation

Processing factors

Comparation between SMEs

and BEs

Results..
Procurement of raw material
BFPIs use a contract
system to reduce risk
because of large raw
material requirement.

90
80
70

Percentage

60
50
40
30
20
10
0
BFPIs
SMFPIs

Market

Ow n

Contracting

Farmers

Raw material procured from

Middlemen

Raw material supplies practices

BFPIs communicate to
farmer and midlemem for
price, quality and delivery
time

80
70
60

Percentage

50
40
30
20
10
0
Price Protection
BFPIs
SMFPIs

Price
Differentiation

Quality

Raw material activities

Communication
w ith farmers

Good storage to keep good quality of

raw material

Perception level

Processing factors..
4.3
4.2
4.1
4
3.9
3.8
3.7
3.6
3.5
3.4
3.3
3.2

BFPIs
SMFPIs

4.22
4.05

4
3.78
3.62

Raw material

Market

3.59

Transportation

Factors

Raw material remains the foremost factor in determining processing

efficiency
Transportation is vital to facilitate and support procurement of raw
material for processing and bring finished product to the market.

Control activities
100
90
80

Percentage

70
60
50
40
30
20
10
0
Hy giene

BFPIs
SMFPIs

Nutritional
Quality

Contamination
lev el

Temperatur
control

Chemical
composition

Packaging

Quality control activity

Large production quantity and markkets makes QC an crucial

activity for BFPIs