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The strengthening model of institutional capacity of milk producer cooperatives in Indonesia

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Author: 
Alla Asmara, Yeti Lis Purnamadewi, Deni Lubis and Khalifah M Ali
Abstract: 

The institutional capacity of cooperatives is the main component that determines the ability of Milk Producers Cooperative (MPC) in adapting to the changes that occur. The objectives of the study are: (1) to analyze the priority of internal and external factors in strengthening the institutional capacity of MPC, (2) to formulate priority strategies for strengthening institutional capacity of MPC, and (3) to construct models of institutional capacity strengthening of MPC. The main data used are primary data collected through Focus Group Discussion (FGD) and indepth interview by using questionnaire. The analysis method used are descriptive analysis, SWOT analysis and Analytical Network Process (ANP). On the internal side, organizational management and cooperative business are a priority of strength; while capital, member participation and human resources become priority of weakness. On the external side, technological and policy developments are an opportunity priority; while the socio-economic condition of the region is a priority of threat. The Strategic priorities in strengthening the institutional of MPC are the development (diversification) to high value added products and the development of marketing networks through partnerships The institutional strengthening model developed is The Strengthening Model of MPC that Oriented to Product Diversification and Partnership.

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               Prof. Dr. ISMAIL YILDIRIM

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