A value chain analysis is conducted to identify the requirements for upgrading the quality of sago starch, which enables producers to gain enhanced value, or for diversifying the product lines served. A case study of a sago starch value chain was carried out in two different locations around South Sulawesi. The characteristics of small-scale sago industries and their production were also examined. The study revealed that dried sago production is the most profitable and has the highest significant value-added process as compared to wet sago and dange.

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