Agriculture Reference
In-Depth Information
FIGURE 6.2
Business development plan for BULOG
Downstream business
Retail
Upstream business
Rice estates
Franchised retail
Transportation
Rebate/superstores
Pest-control units
Storage: rice, sugar, etc.
Short term
Pocket (bag) factories
Rice-milling units
Integrated management and industry
Upstream business
Food estates
Downstream business
Trading: export-import
Crude palm oil
factories
Chained hypermarkets
Centers for logistic
information
Feed factories
Wheat flour factories
Hotels and other
properties
Long term
Food processing
Modern large-scale
Gas stations
rice mills
Domestic and foreign
cargo forwarding
Other manufactures
Consultant services
Holding Company and Conglomeration of BULOG
SOURCE
: BULOG (2003).
medium and long term, BULOG would develop its upstream activities, ex-
panding its rice estates into food estates, feed factories, wheat-flour factories,
food processing plants, modern large-scale rice mills, and other manufactures.
For its downstream business, BULOG would develop its trading business,
such as export and import, chain hypermarkets and superstores, centers for
logistic information, hotels and other properties, gas stations and energy-
based distribution centers, domestic and foreign cargo depots, and education
and consulting services. None of these has anything to do with ensuring food
security or providing social safety nets—something that BULOG has tradi-
tionally done!
Only 3 months after its establishment, BULOG became involved in the
marketing or distribution of sugar (
tataniaga
) in the domestic market because
of a sugar scarcity in March-April 2003. The scarcity was the outcome of a new
