The value chain analysis and the effect of COVID-19 on a small-sized blue crab manufacturer: A case study in Thailand

Abstract

Blue crab is a high-value raw material and can be sold as a fresh raw material in both domestic and international markets. Unfortunately, during the COVID-19 crisis, the demand has decreased dramatically. The objective of this study was to investigate the value chain of blue crab for a small enterprise that processed blue-crab-based food in Surat Thani province, Thailand. The related stakeholders and their roles were identified. Next, the transactions of the manufacturer before and during the COVID-19 crisis were compared. The Integration Definition for Functional Modeling (IDEF0) was implemented to analyse the supply chain of products from blue crabs. The enterprise sales volume decreased by 60 percent during the crisis, and some customers could not pay with cash. The proportion of customers via an online platform and social media increased. There are eight components used in different products, with finger and fat being about 7.29 percent of the boiled crab weight, with a value lower than that of other components. In addition, the crab shell, which is about 43.89 percent of the raw crab weight, was thrown away. Consequently, the enterprise developed various products using these components and maximised the profit by determining which parts of the crab could be used to produce products to satisfy customers. Furthermore, the company should implement proper supply chain management. In the future, the government and universities can research how to utilise crab shells. This research could be a model for other SMEs to create more valuable products in order to survive during the crisis.