The Performance of Production, Price and Marketing System of Shallot in Central Java

Central Java Assessment Institute for Agricultural Technology, Indonesia

^* Corresponding author: dewisahara.ds@gmail.com

Abstract

Shallots are one of the horticultural products that have important economic values. The objective of this study is to analyse the performance of production and price as well as to identify the marketing system of shallot. The research used time-series data from 2009 to 2018. The data was analyzed descriptively. The results showed that the harvested area and production of shallot have an increasing trend, while the productivity of shallots has a decreasing trend during the last 10 years (2009 to 2018). The price of shallots has been fluctuating from 2009 to 2018. The fluctuation of shallots price was caused by the fluctuation of production. The distribution of shallots from production centres to end consumers requires marketing services carried out by marketing agents. The shallot marketing channel involves two or more market players. The longer the marketing channel, the higher the marketing margin, and the lower the share of the price would be received by farmers (profit sharing). Conversely, the shorter the marketing channel, the lower the marketing margin and the higher the share of farmers would be. Therefore, to increase farmer share, there should be an institution that could facilitate a shorter marketing margin between farmers and consumers.