The Efficiency of Environmentally Friendly Shallots Marketing Channels in Kulon Progo Regency

¹ Department of Agribusiness, Faculty of Agriculture, Muhammadiyah University of Yogyakarta, Indonesia
² Department of Agribusiness, Faculty of Animal Husbandry and Agriculture, Diponegoro University, Indonesia

^* Corresponding author: kamardiani@umy.ac.id

Abstract

Farmers in Sentolo, Kulon Progo Regency have farmed shallots using environmentally friendly cultivation systems. Unfortunately, the farmers have weak bargaining positions, so they receive a low farmer’s share. The research aimed to determine the channels, margins, and marketing efficiency. The respondents were 38 farmers and 42 traders. The results showed that one channel was sold to the local consumer market and seven channels were sold to the consumer market in the southern part of Central Java, West Java, and DKI Jakarta. The highest marketing cost was IDR 4,064/kg sold on the Cikarang retail market channel. The highest marketing margin was IDR 16,996/kg sold in the Kramatjati and Cikarang markets with a marketing profit of IDR 13,456/kg. Farmer’s share was greater than 40 percent in the local market which was directly sold to Kulon Progo consumers, Banyumas and Bandung consumer markets. However, the sales volume of the local market was low. The low farmer’s share was in the consumer market in Klaten and DKI Jakarta. A lower technical efficiency value (IET) was found in Bandung consumer market channel. Meanwhile, the value of Economic Efficiency (IEE) of the local market channel, and Bandung consumer market was more efficient than other channels.