The Impact of Contract Farming on Banana Supply Chain Performance in East Java, Indonesia

Pisang Mas (Musa acuminatacolla or banana) is one of the important commodities in
East Java. This study discusses the impact of contract farming to the improvement of
banana supply chain performance.The performance measurements of banana supply
chain are revenue, oversupply, lost sales, and availability. Two models of supply chain
are developed based on two types of contract farming, plasma-nucleus contract farming
(Model 1) and sub-contract contract farming (Model 2). Those two modelsaresimulated
using Vensim PLE software for 52 weeks (computer time). The simulation shows that
the performance of the Model 2 is better than the Model 1.