Tauke and Emotional Network Model in Oil Palm Marketing: Getting Fresh Fruit from Smallholders in Indonesia

Abstract

This article describes how fresh fruit bunches grown by oil palm smallholders are incorporated into oil palm marketing models in Indonesia. This emotional network marketing model is a supplementary model of marketing models in Malaysia which is called factory centered and middleman model. This research uses a descriptive qualitative method. The data was collected by conducted in-depth interviews with 28 informants coming from 4 (four) categories of oil palm smallholders: oil palm tauke (middleman) that included big tauke and small tauke, workers in the loading ramps, and workers in the oil palm factories who were involved in oil palm marketing channels. The result of the research showed that the oil palm marketing channel between smallholders and either small tauke and big tauke was based on an emotional network with a strong bond of friendship, brotherhood, dwelling location, cash payment, giving loan with reasonable requirements, and providing transportation for fresh fruit bunches. In contrast, oil palm marketing channel among smallholders, loading ramp buyers, and POF was based on regulations. This writing presented a different perspective of oil palm marketing channels in general by involving the emotional network of the existing actors for getting fresh fruit bunches and the advantages of oil palm marketing. In this marketing model, there is a longer marketing channel and actors with their varied roles.

Role of the Middleman in Supporting of Oil Palm Smallholders' Community Performance: A Case Study in North Sumatra, Indonesia

“…Although several research findings stated that the presence of middleman causes low income for smallholders and creates dependency and exploitation of smallholders, intermediaries are also needed to resolve market imperfections for tiny farmers (Ishak et al, 2018). Traders and farmers are connected socially, starting from determining the price and where the FFB will be sold, providing vehicles for transporting FFB, providing up-to-date information on fertilizer prices, and plant maintenance management (Ismail et al, 2020).…”

“…Palm oil middlemen serve a crucial role for smallholder oil palm planters since, in addition to acting as intermediaries, they also supply transportation, capital, infrastructure facilities in the form of storage and sorting, and market knowledge to facilitate the sale of harvests to warehouses (Abebe et al, 2016;Ismail et al, 2020;Tampubolon et al, 2021). Research on the role of collectors in palm oil commodities in maintaining the quality of palm oil has not been carried out much.…”