Analysis of Superior Crops Location in East Java, Indonesia

Sahro, Hanifatus; Chen, Shwu-En; Sujarwo, S

doi:10.21776/ub.agrise.2021.021.1.7

Cited by 1 publication

(1 citation statement)

References 6 publications

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“…It is estimated that the study of corn producer welfare, even if any, is limited to a small area (Pratiwi & Canon, 2020), and based on the provincial level in Java at most (Nugroho, 2015;Widarma, 2019), which is not a corn production centre in Indonesia as designed by the central government (Sahro & Chen, 2021). Corn literature in the province, to the best of our knowledge, is only found at a district level (Suddin et al, 2020), and is focused on marketing matters regarding production or marketing costs spent by marketing and distribution channels.…”

Section: Introductionmentioning

confidence: 99%

The choice of a marketing channel to benefit corn producer’s welfare in Indonesia

Jusni

Aswan

2021

Innovative Marketing

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This study aims to examine the marketing channel optionsavailable for corn producers in South Sulawesi, the production center in Indonesia, as well as impact of such a choice on their income level. The target group was corn producers and corn traders. The total sample comprised 150 people, consisting of 120 corn producers and 30 corn intermediary traders within South Sulawesi Province. The results showed that three marketing channels accessed by producers are zero-level, one-level, and two-level channels. The net profit margin obtained by intermediary traders per kg is different by types for each marketing channel due to different marketing activities leading to different costs spent. The most efficient marketing channel is the zero-level channel that conducts direct selling to breeders. It followed by the one-level channel (from farmers to collectors and consumers). Finally, the two-level channel (from producers to merchant traders) showed the lowest efficiency. It should be mentioned that the zero-level channel offers a slight price increase for producers compared to other channels. Its consumers only buy limited number of products so that it does not have a wide impact on producer’s welfare. The study also found high input costs spent to cultivate corn due to land rent, fertilizers, and pesticides. AcknowledgmentThe welfare of corn producers and marketing channel choice is part of an internal research grant project from Hasanuddin University. The research involves the regional government at village and sub-district level, and farmer groups in villages within the Province of South Sulawesi.

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