Risk Mitigation for Fresh Raw-Milk in the Rural Supply Chain

Raw fresh-milk has a perishable characteristic so it needs an appropriate handling from milking to processing, otherwise fresh milk will be contaminated by bacteria so that the shelf life becomes shorter and it losses the quality. Besides, from the perspective of quantity, the lower farmers' production in the upstream will minimize the product availability in the downstream. This condition may cause some potential risk during the supply chain. We focus in the upstream of the rural fresh-milk supply chain. Using sample in Boyolali Regency in Central Java Province, Indonesia, we obtained there is a need to map the risk along the supply chain. This paper aimed to analyze the pattern of the supply chain and its risk, to set the risk treatment and to mitigate the risk as well. For this we implemented ISO 31000:2009. Data sampling were selected by convenience and snowball sampling and then collected using in-depth interview to the risk owners. The results showed there are 5 supply chain flow models and the total number risk is 21 in which 11 of them were mitigated.