The Efficiency of Palm Oil Fresh Fruit Bunches in West Pasaman, Indonesia (2010-2017)

Marketing Functions and Farmer’s Share of Oil Palm Fresh Fruit Bunch of Self-Support Farmers in Banyuasin Regency South Sumatra

“…There is no difference in marketing expenses in the two existing marketing channels, both in marketing channel 1 and marketing channel 2. The share value received by farmers (farmer share) of 61.1% is not much different from that calculated by 60% in the study by (Nesti et al, 2018) at the level of oil palm farmers in West Pasaman Regency, West Sumatra, and 62% in the study by (Sarkum et al, 2020) on oil palm farmers in Labuhan Batu Regency, North Sumatra. This is also in line with research conducted by (Authar ND., 2016) in North Aceh Regency, that the share of prices received by farmers is still relatively small, this is because prices are determined by collectors, farmers are only the recipients of prices.…”

“…However, different results are shown in the research of (Nesti et al, 2018;Sarkum et al, 2020) which show conditions that lack marketing efficiency at the level of 41.95% and 30%, respectively. This is understandable because, from a time perspective, there has been a significant increase in the price of FFB per kg from around IDR 900.00 at the farm level in 2017-2019 to around IDR 1,800.00 in 2020, even rising again to more than IDR 3000.00 in 2021, triggered by the increase in palm oil prices, while the increase in transportation costs is not significant.…”