Upgrading Indonesian Dairy Farmer Value Chain based on Economic Resilience Approach during Covid-19

ABSTRACT

The Indonesian dairy industry is one of the many industries that suffered during the Covid-19 pandemic. Also, dairy farmers experience a low level of economic resilience. To find an answer to this challenge, the author adopts an innovative approach in this research by using the parameters of economic resilience to ensure the sustainability of the dairy farmer's business. It uses mathematical modelling for estimating the ratio of economic resilience (R = 0.96), and based on that;it becomes an indicator for upgrading the dairy farmer's value chain. In addition, we found strategies for increasing the bargaining power of the dairy processing companies by strengthening the role of cooperative as a manifestation of horizontal integration.