ROLE OF SOCIAL ENTERPRISE IN THE DEVELOPMENT AND MANAGEMENT OF NEW VALUE CHAIN IN PRODUCING OF RAW MATERIALS AND PROCESSING PRODUCTS

Abstract

     The article is developed from an action research project on the “development and management of new value chains in producing of raw materials and processing product” focused on rice and alternative crops. The project arose from the need to solve various problems that beset farmers including debt, land for cultivation, health, and marketing problems. The article propose that the approaches in response to solve these problems are; the development of organic agriculture in accordance with international certification standards and production planning according to market demand, farmer’s skills enhancement to become professional with strong networking, and creating and increasing productivity value with innovated  transformation  which will harmonize benefits for various stakeholders in the supply chain  and  fair trade. Regarding to the approach, the project expects local social enterprises to create organizational partnership that will coordinate such development. As a result, this model will help promote organic agriculture as a driving force for social economic development and country’s economic growth.