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

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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.

Acknowledgment
The 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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    • Table 1. Average variable costs of land per ha/planting season
    • Table 2. Average fixed costs per ha planting season
    • Table 3. Total average costs of corn producers per ha/planting season
    • Table 4. Analysis of corn producer average income per ha/planting season
    • Table 5. Average marketing margin in a corn marketing channel
    • Table 6. Average traders’ income within each marketing channel
    • Table 7. Farmer’s share for each marketing channel in South Sulawesi
    • Conceptualization
      Jusni Ambo Upe
    • Formal Analysis
      Jusni Ambo Upe
    • Methodology
      Jusni Ambo Upe
    • Project administration
      Jusni Ambo Upe, Andi Aswan
    • Investigation
      Jusni Ambo Upe, Andi Aswan
    • Data curation
      Jusni Ambo Upe, Andi Aswan
    • Supervision
      Jusni Ambo Upe, Andi Aswan
    • Validation
      Jusni Ambo Upe, Andi Aswan
    • Visualization
      Jusni Ambo Upe, Andi Aswan
    • Writing – original draft
      Jusni Ambo Upe, Andi Aswan
    • Writing – review & editing
      Andi Aswan