Inclusive Business Model in the Sheep Value Chain: A Strategy to Enhance the Sustainability of Livestock Businesses, Indonesia

Aims: Analyzing and comparing the inclusiveness of farmers in every value chain through both cooperatives and non-cooperatives, and designing an inclusive business model in the sheep value chain to support business sustainability.

Study Design: The design of this research is quantitative descriptive, using primary and secondary data. The data collection method involves the use of questionnaires through Focus Group Discussions (FGD) and in-depth interviews with respondents.

Place and Duration of Study: The research was conducted from November 2023-January 2024 in Sei Bingai District, Langkat Regency.

Methodology: Data analysis uses a methodology link with four analysis tools, namely value chain maps, business canvas models, and principles of new business models.

Results: The inclusive business model in the sheep value chain in Langkat Regency involves cooperatives and non-cooperative operations. Cooperatives facilitate farmers to jointly purchase sheep, obtain capital loans, and export. Whereas non-cooperative farmers can also operate independently through the contract farming model. The application of technology and green economy principles is also considered important to achieve sustainability. The establishment of village-owned enterprises (BUMDes) can also be used to empower farmers and increase village income. This entire model requires cooperation between farmers, the government, and other parties in the supply chain.

Conclusion: The involvement of farmers in the sheep Value Chain in Langkat Regency is crucial to support business continuity. The inclusive business model in the sheep value chain through cooperatives and non-cooperatives requires cooperation between farmers, the government, and other parties in the supply chain to achieve the sustainability of the farmers' business.