Application of the Hayami Method in Coconut Downstreaming Added Value Analysis in Indragiri Hilir

Abstract

Research aim

 This study aims to analyze the added value potential of village-scale coconut downstreaming in Indragiri Hilir Regency, Riau Province, using the Hayami Method and to map the corresponding business model through the Business Model Canvas (BMC).

Design/methodology/approach

This study employs a descriptive quantitative and qualitative approach using secondary data from BPS Indragiri Hilir (2022–2023), scientific journals and policy documents. The Hayami Method was applied to calculate the added value of Virgin Coconut Oil (VCO), coconut shell charcoal and cocofiber, while the BMC framework was used to map nine strategic business elements.

Findings

The results indicate that all downstream products generated high added value ratios above 40%, with VCO reaching 60%, coconut shell charcoal 66.67% and cocofiber 71.43%. Coconut shell charcoal showed the highest labor wage allocation, indicating strong employment potential for rural communities. The findings also reveal that a BUMDes-based downstreaming model supported by digital marketing and circular economy practices represents the most feasible strategy for village-scale implementation.

Originality/value

This study contributes to the rural downstreaming literature by integrating the Hayami Method and the BMC framework into a hybrid analytical approach. Unlike previous studies that examined technical or empowerment dimensions separately, this study provides a comparative analysis of three coconut derivative products within an integrated strategic business model framework.

Research limitations/implications –

The study relies on secondary data, limiting the ability to capture real-time market dynamics and local production conditions. Future research should incorporate primary field data to improve analytical accuracy and contextual relevance.