Abstract—Currently, the demand for marine and fisheries commodity in Yogyakarta, Indonesia continues to increase. The existing condition shows that the aquaculture supply cannot be supplied by Yogyakarta region itself, but still need to be supported by regions outside Yogyakarta. The effort to optimize the market is initiated by reviewing and designing the supply chain of production and trade of aquaculture commodity in order to create the implementation of aquaculture production and trade commodity optimally. This formulated supply chain model indicates 4 performance indicators of measurable success in terms of: (1) efficiency; (2) flexibility; (3) responsiveness; and (4) quality. These indicators had been exercised as the success benchmarks for priority marketing management in local level as well as national level. The result of this research indicates that if the catfish fishery system is managed as business as usual then the catfish demand in Yogyakarta region will experience to increase in the future. The increase of demand is inline with the increase of number of people in Yogyakarta and also the fluctuation of catfish consumption per capita. The highest production of catfish will experience in the third year approximately 30,118 tons. Other result of the research indicates that the catfish demand in Yogyakarta region cannot be supplied yet from the local region. Therefore, to fulfill the supply from outside Yogyakarta region, the local farmers should improve the supply through land extension. The fluctuation of commodity price will experience in the future annually and the catfish supply from outside Yogyakarta region will be lowering the price in the market. Keywords—Supply chain model, catfish, efficiency, flexibility. I. INTRODUCTION URRENTLY, the demand of marine and fishery commodity tends to increase. In the national level, it is predicted that the aquaculture supply will experience to increase in 2014 as well as fisheries with number approximately 22.4 million tons. In the supply side, this also will experience to increase with number approximately 12.1 million tons. The supply of fishery commodity is as national economy potential that could be utilized to meet the need of domestic consumption. In addition, Indonesia as one of the largest fishery producer, the fishery commodity could be the national competitive commodity in the global level. Kuncoro Harto Widodo is with The Dep. of Agro-Industrial Technology, Fac. of Agricultural Technology and The Center for Transportation and Logistics Studies, Gadjah Mada University, Indonesia (phone: 6274- 563948; fax: 6274-552229; e-mail: kuncorohw@ugm.ac.id). Joewono Soemardjito is with The Center for Transportation and Logistics Studies, Gadjah Mada University, Indonesia (phone: 62-8121551037.; fax: 62-274-552229; e-mail: joewono_itok@ugm.ac.id). Dwi Ardianta Kurniawan is with The Center for Transportation and Logistics Studies, Gadjah Mada University, Indonesia (phone: 62- 8122696446; fax: 62-274-552229; e-mail: dwiardianta@ugm.ac.id). The marine and aquaculture fishery development in Yogyakarta is still facing the problem in the production process. The aquaculture development in Yogyakarta region and surroundings cannot meet the demand of Yogyakarta people supply therefore this should be supplied from other regions outside Yogyakarta region. The need of catfish supply for Yogyakarta people is estimated around 12 to 16 tons per day. Meanwhile the supply contribution from Yogyakarta itself is only 30% of total demand or around 4.2 tons per day. To fill the gap of demand, the supply should be provided from other regions e.g. from Central Java Province such as Boyolali Regency approximately 60% of total supply and East Java Province. The existence of aquaculture distribution network from other regions outside Yogyakarta has a vital role in creating the market dynamic of fishery trade in Yogyakarta. The existence of catfish suppliers from outside Yogyakarta has stimulated the market dynamics of fishery trade therefore this situation has created a competition at the producer level. In conditions as illustrated above, it needs a strategy to create the proportion of required supply of aquaculture in Yogyakarta which is ideal to improve the role of local actors, to encourage commodity supply chain scheduling of aquaculture commodity to meet the need of sustainability of fish supply, and to improve the infrastructure to support the supply chain process as well as the optimization of on-line information system development to support the product trade process. To achieve the goals mentioned above, this will need support from all stakeholders in the whole process from the production aspect, manufacturing process including handling and processing until marketing or trading aspect. The review and design of supply chain will be one of the efforts that can be exercised to support the optimal production and trading of aquaculture commodity in order to be able to contribute for the implementation of fishery and aquaculture development program, especially to improve level of Yogyakarta people consumption. Research activity that has been conducted is aimed at formulating a logistics and supply chain model to support the production and trade of aquaculture commodity especially for catfish in Yogyakarta region and its surround. II. LITERATURE REVIEW A. Fishery Supply Chain Model in Some Other Countries Management and distribution network of fishery products is one of important parts in the success of the Indonesian Vision Kuncoro Harto Widodo, Joewono Soemardjito, and Dwi Ardianta Kurniawan Supply Chain Model of Catfish Production and Trade in Yogyakarta, Indonesia C World Academy of Science, Engineering and Technology International Journal of Industrial and Manufacturing Engineering Vol:7, No:8, 2013 1663 International Scholarly and Scientific Research & Innovation 7(8) 2013 scholar.waset.org/1307-6892/16122 International Science Index, Industrial and Manufacturing Engineering Vol:7, No:8, 2013 waset.org/Publication/16122