PAPER ASSIGNMENT

THE ROLE OF AGROINDUSTRY IN INCREASING THE ADDED VALUE

OF AGRICULTURAL COMMODITIES: ORANGE

Group 1 :

- Shafa'a Puteri Al Zahra F3401201045

- Raihan Rivellino F3401201815
- Josephine Fatima Devi F3401201812

IPB UNIVERSITY
BOGOR
2021
 The Role Of Agroindustry in Increasing the Added Value of Agricultural
Commodities: Orange

Background
Wilkinson and Rochan (2009) defined agroindustry as postharvest activities involved in
the transformation, preservation, and preparation of agricultural production for intermediary or
final consumption, typically increases in importance with regard to agriculture and occupies a
dominant position in manufacturing as developing countries step up their growth. Agro-industry
needs to be developed because these two sectors, namely the agricultural and industrial sectors,
have a large role in GDP. According to the Central Statistics Agency (BPS) (2013), in the last
five years it can be seen that the manufacturing sector is the sector that has the largest share of
GDP at 25.8% in 2010; 25.71% in 2011; 25.59% in 2012; and 25.53% in 2013. Then, the
agricultural sector is the sector with the third largest share in GDP after the trade, hotel and
restaurant sectors. The contribution of the agricultural sector was 13.16% in 2010; 12.78% in
2011; 12.53% in 2012, and 12.26% in 2013. The data shows that the agricultural sector and the
industrial sector have a major role in Indonesia's economic development.
Based on BPS data (2013), it is known that the non-oil and gas industry has a
contribution of 92.62%. From the contribution of the non-oil and gas industry, 60.25% was
contributed by the food, beverage and tobacco industry; the textile, leather goods and footwear
industry; wood and other product industries; paper and printing products industry; and the
fertilizer, chemical and rubber products industry. The five industries are industries that rely on
the agricultural sector as their raw material. Given the close relationship between the agricultural
sector and the industrial sector, a new paradigm in agro-industry-oriented economic development
is an appropriate industrialization strategy for Indonesia.
Citrus is one of the commodities that has the potential to be developed in Indonesia,
which plays an important role in meeting the people's fruit consumption needs, opening up job
opportunities and increasing people's income. Citrus growing in Indonesia is classified according
to its type, namely Siamese oranges, tangerines and large oranges (pamelo). Local agro-industry
that utilizes citrus commodities can be found in various areas, but their development has not been
maximized due to limited resources.
 Orange (Citrus)

Figure 1. C.Sinensis
Source: Freepik.com

Citrus is a genus with several major cultivated species, including C. sinensis (sweet
orange), Citrus reticulata (tangerine and mandarin), Citrus limon (lemon), and Citrus paradisi
(grapefruit). Citrus originates from south East Asia, known for its excellent vitamin C, a
powerful natural antioxidant that builds the immune system (Etebu and Nwauzoma 2014). Citrus
cultivation occurred 4000 years ago. The origin genetic of the sweet orange is not clear, although
there are some speculations that sweet orange might be derived from interspecific hybridization
of some primitive citrus species. Citrus is also in the order Sapindales, a sister order to the
Brassicales in the Maldives, making it valuable for comparative genomics studies with the model
plant Arabidopsis (Xu et al 2012).
Sweet orange classified as kingdom Plantae, subkingdom Tracheobionta, superdivision
Spermatophyta, division Magnoliophyta, class Magnoliopsida, subclass Rosidae, Ordo
Sapindales, family Rutaceae, genus Citrus, species Citrus sinensis (L.) Osbeck. It’s One of the
most common citruses cultivated worldwide, accounting for about 70% of the total annual
production of Citrus species. It's a tropical and subtropical plant that's extensively grown
(Piccinelli et al, 2008). Because of its excellent nutritional content, source of vitamins, and other
purposes, it is now produced practically everywhere in the world as a human food source. The
sweet orange (Citrus sinensis), also known as orange, is a member of this family and a good
source of vitamins, particularly vitamin C, as well as calcium, potassium, thiamine, niacin, and
magnesium (Angew, 2007). It has been used traditionally to treat ailments like constipation,
cramps, colic, diarrhea, bronchitis, tuberculosis, cough, cold, obesity, menstrual disorder, angina,
hypertension, anxiety, depression and stress (Milind and Chaturvede 2012).
In 2018, PBB released data about orange producers worldwide. Lead by Brazil with
16,713.534 tons of orange and China with 9.246.305 ton. Indonesia itself is at the 8 position of
orange producer in the world with 2.510.442 ton. The national production of 2.5 million tons was
created from a complete plantation space of 57,000 hectares (ha). The bulk of national citrus
production is controlled by the Siamese orange, that is70%, followed by tangerines 20%, and
alternative oranges 10%. Garut is the biggest orange producer in west java. Known for its
Tangerine, 63% of the orange produce in west java came from Garut. South Buton Regency,
Southeast Sulawesi. Also known for its local orange producer. Siompu oranges have their own
speciality compared to other oranges in the country. 135-200 grams tastes sweeter than most
sorts of superior oranges within the country, as an example, Sumatran tangerines, Kalimantan
oranges, or oranges from island and Java.
Sweet oranges are one of the most important foods in the agroindustry. About 40-50% of
the fruit is it’s juice that is mostly used for orange juice. Some oranges are dried and added sugar
to make manisan, traditional food and can last longer than fresh orange. Not just food, orange
flavor is most likely to be used in medicine such as cough medicine and cold medicine, also
vitamine. Other than those oranges likely to be extracted to make fragrance, the fragrance is used
a lot for room freshener, essential oil, and mosquito repel lotion.

Role of Agroindustry in Increasing Added Value of Orange Commodity

The addition of commodity values ​to oranges is very diverse. Of course, in this case, the
role of agroindustry will be involved in turning citrus into a new product. The most common
example is citrus drinks. The manufacture of this drink involves the role of agroindustry in
processing and squeezing citrus fruits and then adding some other ingredients such as
preservatives to maintain product conditions so that they last longer, dyes, etc. In another
example, for example, the manufacture of cosmetics with the basic ingredients of processed
orange peel. So that orange peel waste does not arise, the manufacture of this cosmetic is not
only beneficial for beauty, but it is also expected to reduce the waste of orange peel that is
thrown away a lot.
One example of the role of students in the development of agro-industry is the
agro-industry Development of Agro Techno Park (ATP) in Donowarih Village Based on Orange
Fruit-Based Products Diversification conducted by a group of Brawijaya University students.
Initially, many farmers preferred to sell their citrus fruits fresh to middlemen. During the harvest
season, waste production is high due to the large number of rotten citrus fruits, as well as low
income problems due to low selling prices. Therefore, post-harvest technology is very important
to be introduced to the Donowarih community in order to increase the economic value of local
commodities. Diversification of citrus fruit-based processed products such as juice drinks and
jelly candy can also develop the marketing potential of citrus fruits in Donowarih village, which
so far still relies on fresh sales. Post-harvest processing of oranges can also increase the
economic value of citrus farmers. Therefore, it takes the role of the local government to realize
ATP in Donowarih Village (Suhartini et al. 2020)
One example of an agro-industry that utilizes citrus commodities is the Siamese orange
syrup production house in Sukareno Village, Jember Regency. The production process is carried
out in accordance with the order of sorting, washing and draining citrus fruits, cleavage,
squeezing and filtering, making sugar solution, mixing sugar solution and citrus fruit juice, as
well as packaging and packing. For its own marketing, it still relies on the Sukareno Village
cooperative and the target is local residents.
According to research conducted by Fadia et al. (2021), the Siamese citrus agroindustry
in Sukoreno Village, Umbulsari District, Jember Regency is financially profitable for both citrus
farmers and local production house employees, but needs attention and the role of the
government, especially the Jember Regency government to increase the level of UMKM
production which exists.
The marketing sector is very important to support the development of citrus agribusiness.
With a clear market, farmers will have no trouble selling their crops and will be more
enthusiastic in citrus farming. With good marketing, oranges are no longer only enjoyed by local
people because they can reach all regions in this country with adequate transportation support.
The synergy between the central government through the Ministry of Agriculture with
local governments and citrus agribusiness players will be able to realize Indonesia's leading
region as a national center for citrus production. Technology, marketing and means of
transportation are the main factors to make this happen.
If we look at the examples above, the addition of commodity value in oranges is very
profitable to make various products for resale. Another product innovation that our group has
been thinking about is making a stylus pen out of orange peel. If we pay attention, that orange
peel can move a touchscreen mobile phone or tablet. As is the case with human skin that touches
the touch screen everyday. In the manufacture itself, agroindustry plays a role in finding and
peeling small orange peels with superior quality and fully functional in touching the touch layer.
To make one stylus pen itself, it only takes a few millimeters of orange peel. That means, in one
orange can make as many as hundreds of stylus pens.

Conclusion
Citrus fruit is one of the fruits that can be relied on to add value to commodities which
will later become a new product that is useful in certain fields. There are 2 general examples that
usually oranges are processed with the role of agroindustry, namely the manufacture of citrus
drinks and cosmetics on orange peels. and there is an innovation from us is to make a stylus pen
using orange peel. In this case the role of agroindustry in the manufacture of these products is
very necessary in processing freshly harvested citrus fruits.
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