Development for Human Welfare 2016
125 Table 3. Marketing Analysis in the Muara Beliti Sub District
Market Institution and Margin Component
Rp.kg Margin Distribution
Market Share
1. Producer
1.1. Selling Price 5.100,00
65,22
2. Middleman
2.1. Purchasing Price 5.100,00
65,22 2.1. Transfer Cost
123,70 4,55
1,58 2.2. Terminal Cost
131,80 4,85
1,69 2.3. Lunch
75,30 2,77
0,96 2.4. Telephone
26,90 0,99
0,34 2.4. Depriciation
399,60 14,69
5,11 2.5. Smoking Cost
32,30 1,19
0,41 2.6. Profit
370,40 13,62
2.7. Selling Price 6.260,00
80,05
3. Wholesaler
3.1. Purchasing Price 6.260,00
80,05 3.2. Transfer Cost
98,7 3,63
1,26 3.3 Terminal Cost
227 8,35
2,90 3.5. Telephone
153 5,63
1,96 3.6. Depriciation
49,4 1,82
0,63 3.7. Lunch
560,2 20,60
7,16 3.8. Smoking Cost
69,1 2,54
0,88 3.9. Profit
402,60 14,80
3.10. Selling Price 7.820,00
3.11. Margin 2.720,00
May Shiska Puspitasari
126 Then, analyze the structures of
Bokar market, carried out through the calculation of the Herfindahl-Hirschman
Index Table 4. Tabel 4. Herfindahl-Hirchman Index in the
Marketing Distribution
of Bokar in Sukakarya
N o.
Purchasing Number kg
S S
2
1. 5000
2,50 6
6.281 2.
8000 4,01
16.08 3.
6500 3,25
8 10.61
6 4.
110000 55,1
38 3,040.
182 5.
70000 35,0
88 1,231.
148 ∑
199500 100
4,304. 302
Table 4 shows that the value of HHI 4304.302, which means the market
structure of Bokar marketing in Sukakarya district tend oligopsonistic.In contrast to
table 5. The data shows that the value of HHI 2074.566 meaning bokar market
structures in the Sukakarya Sub Distric tend monopsonistic. It reveal that clearly
the bargaining position of rubber farmers was low. It was due to the many small-
scale farmers dealing with wholesalers who are few in number. As indicated by
Amin 2004; Castiglione et al. 2012; Amin 2014 that low of bargaining
position of farmers due to market concentration occurred on a few sellers or
buyers.
Tabel 5 Herfindahl-Hirchman Index in the Marketing Distribution of Bokar in Muara Beliti Sub District
No. Purchasing Number kg
S S
2
1. 2000
17,699 313,259
2. 1800
15,929 253,740
3. 2500
22,124 489,467
4. 2000
17,699 313,259
5. 3000
26,549 704.832
∑ 11300
100 2.074,556
CONCLUSION
There are two distrbution chanel in bokar marketing, where 78 percent of
rubber raw material bokar farmers, depending on the marketing channel
through traders I – wholesalers - the
factory prior to final consumer channel 1 22 percent of farmers bokar markets its
products through middlemen Great - Factories, prior to final consumers
channel 2. That mean that the majority of farmers depend on channel 1, the rest
chose on channel 2.
Both in the Muara Beliti Sub Districtand
Sukakarya Sub
District, market structure is not effective and
efficientMuara Beliti compared to the district. But in Muara Beliti more effective
and efficient. Analysis of the Herfindahl- Hirschman Index S2 = 4304.302 which
means that the market structure tends oligopsonistic bokar for in the district
Sukakarya and Herfindahl-Hirschman Index S2 = 2074.566 which means bokar
market structure in the district. Muara Beliti tend Monopsonistic .
Both in the Sukakarya Sub District and in the Muara Beliti Sub District, The
distribution of the market was nor effective or efficient, because inequality in the
distribution margins and marketing high cost.
REFERENCES Amin, Z. 2004. Keterkaitan antar
Subsistem dari Sistem Agribisnis Bawang Merah di Wilayah Cirebon.
Program Pascasarjana Universitas Padjadjaran, Bandung.
Catiglione, C., L. Grochova, D. Infante, and J. Smirnova. 2011. The
demand for Beer in Presence of Past Consumtion and Advertising
in the
Czech Republic.
Development for Human Welfare 2016
127 Agric.Econ. Journal: 5712 589-
599. Department of International Trade
Promotion, 2012.
Export Stratistics
Commodity: 4001.
Bangkok: Information
Centre, Department of International Trade
Promotion. Directorate General of Processing and
Marketing of
Agricultural Products.
2014. Indonesias
position in the World Rubber Market Opportunities.Jakarta.
Damanik, Sabarman.
2012. Pengembangan
Karet Havea
Brassiliensis Berkelanjutan di Indonesia.
Jurnal Perspektif
Volume 11 Nomor 1Juni 2012. Hlm 91-102.
Sudiyono, A.
2001. Pemasaran
Pertanian. Penerbit Universitas Muhammadiyah
Malang UMM Press. Malang.
May Shiska Puspitasari
128
DISCUSSION FROM PARALLEL SESSION PAPER
TITLE THE EFFECTIVENESS AND EFFICIENCY OF THE MARKET
STRUCTURE AND THE RUBBER RAW MATERIALS MARKETING IN MUSI RAWAS DISTRICT
AUTHOR May Shiska Puspitasari
DISCUSSION QUESTION
1. Could you explain why the robber content data still speculative? 2. Stratified random Java Native etnis does in influence the
tendency to choose which kind of channel? 3. Is ther any database you used for instant that?
4. What are the consequences of the study?
ANSWER 1. Only literature data
2. Native etnis have high quality
SUGGESTION 1. Abstract intents? need information about the consequences of
the study 2. Make the slide by chart
3. Need impact of the study 4. Need more reference
Development for Human Welfare 2016
129
ANALYSIS OF BEEF SUPPLY CHAIN MANAGEMENT AT AGRIBUSINESS BASED SLAUGHTERHOUSE IN UPTD OF
ANIMAL SLAUGHTERHOUSE OF PALU
Muh Zulfadhli Prasetyo
1
, Yulianti Kalaba
2
, Lien Damayanti
3
, dan Erny
4
.
2
sd
4
: Dosen Agribisnis Fakultas Pertanian.
1
: Mahasiswa Program Studi Agribisnis.
corresponding author
: zulfadhliprasetyogmail.com
corresponding author
: lien_damayantiymail.com
ABSTRACT
This research aims for: 1 to discover the mechanism of beef’s SCM at UPTD
Slaughterhouse in Palu city; 2 to discover beef’s marketing efficiency rate at UPTD
Slaughterhouse in Palu city. Research determination method is conducted purposively . The method used in this research are descriptive and analytical
method. Sampling method used in this research are purposive sampling and snowball sampling method. Analysis results showed that: 1 Identification of beef
supply chain membership model are, First Chain ; Livestock Farmer, Second Chain ; Cow Trader, Third Chain ; Slaughter House, Fourth Chain ; Beef Retailer, Sixth
Chain ; Customer, where each of the chain has its own role. There are 3 beef flow patterns, they are product flow, cash flow and information flow, but it is still not
optimally run because still there is a residual product. Structure Management explain there are aspects that strengthen every chain performances, those aspects are
agreement on cooperation, transaction system, and partnership.; 2 beef distribution channel at UPTD Slaughterhouse in Palu is efficient based on marketing efficiency
value that close to 0 zero, marketing margin are profitable because of SkiSbi.
Key words: Beef, marketing efficiency, marketing margin, supply chain management.
INTRODUCTION Agricultural is one of the important
role for growth development of the economy of Indonesia . It is important for
the national economy not only because of its contribution for the GDP Gross
Domestic Product, job opportunity, and foreign exchange reserves but also about
its potential as motor for the growth of output and diversification of product from
other
economic sector.
Therefore agricultural sector become the leading of
the other sectors Tambunan, 2003. One of the sector from agriculture is
subsector of livestock where its activity is to process the livestock commodity. The
product can as milk, meat, and egg. Cow is one of the commodity in livestock. Cattle
are divided into view kind, they are beef cattle that produce meat and dairy cows.
Beef cattle are cattle that can sustain the needs of the consumption of meat,
because cattle can be bred in a simple, easy, like in many communities and the
body is quite large when compared to other livestock. Beef has advantages as a
product to provide for good nutrition Yulianto dan Saparinto, 2010.
Central Celebes province is one of the areas suitable to be developed as the
motor of beef cattle breeding. Some areas in Central Celebes has made the
production of beef cattle, slaughterhouse in Palu city started to see this opportunity
and developed their slaughterhouse to increase production and marketing into a
strategic place, for the population of cattle, slaughter cattle and beef production per
kg for five years. Cattle production is the commodity that has large livestock
population of the largest in Central Celebes province. In the period 2011-
2015, the average cattle population was as much as 255.758 Cattles with an
average percentage growth each year is equal to 2.85 percent. The average
slaughter cattle in Central Celebes province in the period 2011-2015 were as
many as 29.432 Cattles with percentage of average growth in cuts of each year is
Muh Zulfadhli Prasetyo, Yulianti Kalaba, Lien Damayanti, and Erny
130 equal to 10.52 percent. Cattle production
is the commodity that has number of the largest livestock meat production in
Central Sulawesi. In the year period of 2011-2015, the average production of
beef cattle was as much as 4,609,583 kg with the average percentage of growth
each year is equal to 15.14 percent.
Beef is one of the food commodities which has contributed to the improvement
of nutrition, especially animal protein is needed by human development. With the
increasing of population growth and the increasing of live standard in Indonesia,
the demand of products for nutrition is increasing, so does the demand for
foodstuffs such as demand for animall protein. Demand for beef from year to year
is increasing, it is in addition affected by the increasing of population also affected
by the increasing in knowledge of the population itself to the importance of
animal protein, so the consumption patterns are also changing, which initially
consume more carbohydrates to the consumption of meat, eggs and milk. The
need for broilers and eggs in the country today has been fulfilling by local
production, but milk and beef still need to import.
Slaughterhouse is an institution for the wholesalers to cut cattle. The author
chose UPTD RPH as much involved with local suppliers and trafficking retailers
even engage with buyers of hotels in Palu City, therefore UPTD slaughterhouses
must have had a series of complex supply chain, supply chain management SCM
is an activity for how to get a raw materials to the production process into finished
goods and distribution to the hands of consumers . therefore, because the
characteristics of perishable products the problem obtained is beef prices are high,
the quality and quantity of beef is still low due to residual beef if not sold out, by the
time which is taken in conducting the distribution of beef and price comparison
that
gives the
employers of
slaughterhouse and retailers is relatively low.
Unit Pelayanan Terpadu Daerah UPTD Rumah Potong Hewan RPH
deliberately is chosen because it has a strategy that is fully equipped and always
carried out supervision, monitoring, and evaluation of ongoing routine to conform
what is desired by the market. UPTD Rumah Potong Hewan conducting the
daily production to done at night, with the average number of beef cattle as many as
21 fish with the total of 4.452 kg of beef. The authors hope assisted various
professional parties involved in the development of strategies into it. Based
on this background of problem, the researchers looked at the need to conduct
research to analyze the supply chain of beef in UPTD RPH. Beef Supply chain
management should pay attention to several aspects that may affect the
smoothness of the process of distribution to the final consumer. Because not only
meet consumer demand, the forms of regulation in the meat SCM also aims to
benefit the chain involved. An approach is needed in the form of approach SCM
mechanism to determine the structure of the supply chain, supply chain flow
pattern, chain supply management, and supply
chain business
processes, because it will affect the decision-making
chain there. Appropriate decision will be beneficial in maintaining the supply and
quality of the meat.
MATERIALS AND METHOD
Research conducted in the RPH UPTD in JL. Lekatu No 107 District
Tatanga of Central Celebes Palu. Locations were selected deliberately
purposive and
snowball sampling,
because UPTD RPH has the frequency of production by the average number of beef
cattle as many as 21 fish with the total of 4.452 kg of beef so as to regulate the
distribution in accordance with the request. The timing of the research is in
February to April 2016. The data used in this study consisted of primary data and
secondary data. Primary data were obtained by direct observation and
interviews with respondents i.e. leader UPTD
RPH using
questionnaire. Secondary data were obtained from the
relevant agencies and the relevant literature with the goal of researcher.
Development for Human Welfare 2016
131
Picture 1. Beef Supply Chain Model Farmers
Slaughterho use
Employers Home
industries Merchant
Retailers Cattle
Traders
Consumer
Descriptive analysis is a method used to examine the status of human
groups, an object, a set of conditions, a system of thought or a class of events in
the present. The goal is to create a description, picture or painting in a
systematic,
factual and
accurate information on the facts, nature and the
relationship between the phenomenon investigated Nazir, 2009. The output of
this analysis is the overview of the beef supply chain structure that occurred in the
study site in the form of supply chain structure, flow patterns, Supply Chain
Management, and Business Process Supply Chain
1. Market margin of beef cattle and
beef MP = Pr
– Pf
Information : MP : Market margin rupiah per cattle
Pr : the consumer level prices of a live cattle or slaughtered rupiah per cattle
Pf : Price at the farm level rupiah per cattle
2. Share cost and benefit of beef cattle and beef
Share Cost Sbij = [cij Pr-Pf] x 100
Share Benefit Skj = [Pij Pr-Pf] x 100
Pij = Hjj – Hbj – cij
Information : Sbij : price percentages to conducting the
market to-i by the marketing agency to- j .
cij : the cost to conducting the market function to-I by the marketing agency to-j rupiah
per cattle Skj : the percentages profit of the marketing
agency Pij : the profit of marketing agency to-j
rupiah per cattle Hjj : selling price of the marketing agency to-j
rupiah per cattle Hbj : Purchase price of the marketing agency
to-j rupiah per cattle
3. Market efficiency of the beef EP TBTNP×100
Information : EP
: Market Efficiency TB
: Total cost of marketing Rp TNP : Total product value marketed Rp
With Decision rules: – 33
= Efficiency 34
– 67 = Less Efficiency
68 – 100
= Not Efficiency
RESULT AND DISCUSSION Supply chain structure
The structure of the beef supply chain is not affected by different types of
beef traded, supply chain members involved, as well as a system built among
the parties. In general the results of beef as structure below in Figure 1 which
models the beef supply chain.
Muh Zulfadhli Prasetyo, Yulianti Kalaba, Lien Damayanti, and Erny
132 Based on the study of the primary
data the actors in the beef supply chain UPTD Slaughterhouse are as follows:
Chain 1: Farmers
Breeders are manufacturers that produce beef with the process of breeding
beef cattle, which are in Sub Loru and District Ampibabo. The results of the
product depends on the pattern applied. Farmers as providers of raw materials to
be distributed to the chain further. Raw material supply itself has no separate
benchmark for the number of beef cattle that provided, cause by as many number
of farmers in the various regions and the city of Palu, Central Celebes
Chain 2: Cattle Traders
Beef traders is extended hand of a businessman slaughterhouse that supply
the beef cattle, in District Loru and District Ampibabo Role cattle trader here as a
partner of entrepreneurs slaughterhouse in looking for supplies of beef cattle alive,
cattle trader does not keep cattle alive in cages but as a distribution medium to
deliver beef cattle. Cattle traders load ties to the breeder to supply live cattle.
Chain 3: slaughterhouse Employers
Employers of the slaughterhouse located in Slaughterhouse, taking an
important role in the chain of supply of beef and can be considered as price
maker for discount offers good position for turnover of cattle traders themselves. The
role of businessmen here who manage the butcher beef until after the cuts that
will deliver the next to the chain. Chain 4: Merchant Retailers
Retailers located in Manonda market, are an important link in the supply
chain because of their position that connects consumers with nearly all of the
supply chain underneath. Retailers are responsible for the quality of the beef,
because in this chain meets the demands and needs of consumers and ensure the
availability of goods when the consumer wants it.
Chain 5: Home industries
Home industries related directly to the consumer, home industry is Hj. mBok
Sri Home industry is adding value on beef products with the addition of inputs to
produce a new output and economic value. Home industry in this case does not
do a lot of things in the chain, because the products are obtained from the retailers.
Chain 6: Consumer
Consumer is the last link of the supply chain, in this chain is the products
finished for consumption either its fresh meat or used as raw material processed
in the form of shredded beef and further processed forms. All of the financing
comes from customer payments for products purchased, to the information
about the needs desires of consumers is a determinant of the direction of the cattle
ranch.
Beef product flow
There are three kinds of streams that must be managed in a supply chain.
First is the product stream which flows from upstream to downstream, the second
is the flow of financial money from downstream to upstream, and the third is
the flow of information that can flow from upstream to downstream, or vice versa.
Figure 7 shows the flow pattern in the beef supply chain in UPTD RPH
.
Development for Human Welfare 2016
133 Product flow starting from the beef
cattle farmers
to traders,
to a
slaughterhouse entrepreneur, then to distribute to retailers and consumers.
Employers butchers cutting and post- cutting process and deliver beef to
retailers
from retailers
is directly
distributed to the home industry and ended to consumer. Home industry
reworks beef products. Cash flow flowing from consumers
to retailers,
home industries,
entrepreneurs butchers, cattle traders to beef cattle ranchers. These financial flows
retailers do delay payment system no delay more than 1 day after the meat
distributed. At farmers, cattle traders, butchers employers pay directly in
accordance with a predetermined to the system. Employers also pay directly to the
slaughterhouse RPH as container and provider of facilities and infrastructure at
the slaughterhouse and overseeing the cuts.
The flow of information is integrated between supply chain members. The
information flow occurs at the end of consumer, retailers, home industries,
entrepreneur slaughterhouse,
the slaughter, cattle traders and farmers, or
vice versa. Ranchers and cattle trader deliver information in the form of supply of
the stock of beef cattle to employers slaughterhouse through a cattle trader,
then the RPH provide information such as cutting activities in the Slaughterhouse to
monitor the health of beef cattle, because RPH is under the auspices of the
Department of Animal Husbandry and Animal
Health Provincial
Central Sulawesi. Based on Law No. 18 of 2009
on Animal Husbandry and Animal Health. However, for the provision of beef stock to
retailers is always uncertain. And retailers only
accept meat
stock given
slaughterhouse given by employers to forecast market demand conformity from
employers of the slaughterhouse. Management Structure
Management structure describes aspects of the action in all levels of
management in
the supply
chain members. Such actions explain the steps
taken by the members of the supply chain management to act on each level
consisting of
strategy, cooperation
agreements, transaction systems and partnerships.
Research results shows that beef supply
chain entirely
using good
management system. Farmers as primary producers as providers of raw materials,
namely beef. Trading beef is a medium for entrepreneur butchers to find a supply of
beef outside the area. Cattle traders are also planning in the procurement or
Slaughterhous e Employers
Picture 2. The flow pattern in the Beef Supply Chain
Information :
Product Flow Cash Flow
Information Flow Farmers
Consumer
Merchant Retailers
Slaughterhous
Home industries
Cattle Tradersr
Muh Zulfadhli Prasetyo, Yulianti Kalaba, Lien Damayanti, and Erny
134 provision in order to continuously send
cattle to the slaughterhouse entrepreneur retailers as an extended arm of
entrepreneur slaughterhouse. Employees of slaughterhouse beef processing, the
process of cutting, after cutting, and sends retailers. Retailers undertake further
activities by sorting each piece of beef to be more easily sold from the primary
product and the product side. Pattern product distribution
The distribution pattern which was built by members of the supply chain has
a different pattern, the pattern is built based on the ease of application in the
field. The pattern distribution of the beef is as follows:
The pattern of the beef supply chain with the aim of traditional market
wholesale market → traders cattle breeders
→ Entrepreneur
→ slaughterhouse retailers → consumers
Cattle trader buys cattle from farmers, then cattle were taken to a
slaughterhouse to be sold to businessman butcher and businessman butcher to cut
the cattle, then conducting post cuts of beef, after it was weighed and packed in
plastic and then distributed to the market or to retailers.
Price distribution pattern
In a trading system, in general, price distribution will expect some increase in
each level. This does not come into force for the distribution of the price of beef.
Some of the differences in price levels in beef identified and obtained the difference
in price as in table1.
Tabel 1. Price differences on beef supply chain
Members Supply chain
Beef prices RpKg Farmers
Rp 110.000kg Beef trader
Rp 115.000kg Butcher Businessman
Rp 95.000kg Merchant Retailers
Rp 100.000kg Sources : Interview result of Stakeholder
The difference in price on beef where the
selling price breeder Rp. 110,000 kg for beef cattle life to cattle trader, for a
purchase price of beef cattle to cattle trader from employers slaughterhouse
Rp. 115,000,- to level entrepreneurs slaughterhouse Rp. 95.000 kg were
given to merchants retailers, selling price retailer of Rp 100,000,- judging the price
difference is obtained each currency supply chain there is a discrepancy
between the purchase price of beef cattle and selling prices businessman butchers
and
retailers, but
employers slaughterhouse here as a determinant of
prices Price Maker, since employers slaughterhouse has a good bargaining
position.
Channel Distribution in beef Supply Chain
Distribution channels in the supply chain for beef cattle and beef in UPTD
RPH indicate that the product flow from the farmer to the consumer of beef. There
are two forms of the product being distributed, in the form of live beef cattle
and in the form of carcasses. The carcass is the result of output due to the cutting
process in the form of live cattle beef, liver, lung, kikil, and bone.
Picture 3. Distribution Channels Beef Slaughterhouse
Employers Consumer
Merchant Retailers Information
Channel 0 Nol Channel 1 Satu
Development for Human Welfare 2016
135 Distribution channels in the beef
supply chain. The process of distribution channels beef involves three chains,
among others businessman butchers, retailers and ended in customers. There
are two types of marketing channels in the distribution of the beef, they are marketing
channel level 0 zero and channel marketing level 1 one.
Efficiency Level Marketing, Marketing and Distribution Margin on Beef Supply Chain
Based on the results of this research in the field can be seen that the value of
marketing margin for each of beef cattle live on this channel Rp. 1400000.00
where this value represents the difference between the price paid by butchers with
the price received by farmers, for more details can be found in table 2 as follows.
Table. 2 Margin Marketing, Distribution Margin and Top Price of Live Cattle. No
Marketing Agency Prices
RpCattle DM
Share Ski
Sbi Price
Ski Sbi
1. Farmers
Selling Prices 5.500.000
79,71 2. Cattle traders
a. Purchase price 5.500.000
b. Animal Feed 50.000
3,57 0,72
c. Transportation 75.000
5,35 1,08
d. Profit 1.350.000
96,42 19,56
3. Butcher businessman
Purchase price 6.900.000
Marketing margin MP
1.400.000 96,42
8,92 79,71
19,56 1,8
100,00 100,00
Source : Primary data after processed Year 2016
Table 2 shows the value of the distribution margin on these channels
amounted to 96.42 greater than the margin distribution fee of 8.92 of beef
cattle, means that the distribution channel is advantageous. Value of the shares is
part of the price received or paid by the chain. The average part of the price
received by farmers is Rp 5,500,000, or 79.71 per cow, part of this price is the
purchase price in the form of beef cattle calves aged 3-4 years. Share of the profits
earned by 19.58 farmers, part of the fee paid farmers as costs of transportation
and food by 1.8. Value of the shares is part of the price received or paid by the
chain. Share calculation results indicate that the share price received by farmers is
higher than the price received part of slaughterhouse businessman, so that
farmers are not disadvantaged from distribution activities beef cattle.
Based on the calculation results in Table 2 show that distribution of the profit
margin is
greater in
comparison distribution fee margin is 96.42 8.92.
Section advantage beef cattle greater than the share of costs in the form of beef
cattle and feed transportation costs ie 19.58 1.8. This means marketing
activities is profitable for cattle traders and chain involved.
Muh Zulfadhli Prasetyo, Yulianti Kalaba, Lien Damayanti, and Erny
136
Table 3. Marketing Market, Distribution Margin and side price of beef No
Marketing Agency Prices
RpKg DM
Share Ski
Sbi Price
Ski Sbi
1. Butcher Businessman
95 Purchase price
95.000 2.
Merchant retailers a. Purchase price
95.000 b. Tax retribution
20 0,4
0,02 c. Transportation
200 4
0,2 d. Purchase price
100.000 e. Profit
4.780 95,60
4,78 3.
Consumer Purchase price
100.000 Marketing Margin
MP 5.000
95,6 4,4
4,78 0,22
100,00 100,00
Source : Primary data after processed Year 2016
Based on Table 3 on beef marketing margin indicates that the value of
marketing margin for each kilogram of beef is Rp 5000,- Distribution of the profit
margins earned by retailers amounted to Rp 4,780, or 95.60, while the margin
distribution fees paid retailers that transport costs per kilogram of meat Rp
200,00 kg or 4, and the fees paid market retailers for USD 20.00 kg or
0.4. Share value is part of the price received or paid by the chain. The
average part of the price received by butchers or slaughterhouses Rp 95000.00
or 95, part of the profit earned by retailers amounted to USD 4780.00, or
4.78. Part dealers transportation costs paid Rp 200.00 Kg or 0.2 while the cost
of the levy for each kilogram of meat Rp 20.00 kg or 0.2.
Based on the calculation results in Table 3 show that the distribution of the
profit margin is greater in comparison distribution fee margin is 95.6 4.4.
Section advantage beef is greater than on the cost of beef in the form of
transportation fees and levies market is 4.78 0.22. This means marketing
activities beneficially for retailers and chains involved.
Efficiency market of beef Distribution of beef products has two
kinds of distribution patterns. The type of distribution channel is channel 0 zero
level and channel 1 one level which is based on analysis of data taken using
marketing efficiency analysis obtained the results shown in Table 4 below.
Table 4. Marketing Efficiency of beef No.
Distribution Channel
Marketing Efficiency Value
1. Channel 0
Zero Level 0,00
2. Channel 1
One Level 0,22
Source : Primary data after processed Year 2016
Based on Table 4 of the marketing efficiency of beef shows that the efficiency
of the marketing channel 0 zero level butchers-consumer 0 smaller when
compared to the efficiency of marketing channels
one level
employers slaughterhouse - retailers - consumers at
0, 22. Channel 0 zero level. This channel is a channel type where there is
no intermediary in the distribution process, while channel 1 one level. This
channel is a channel type that uses an intermediary in the delivery of the product.
CONCLUSION AND RECOMENDATION
Conclusion
This study identified the model of the supply chain of beef, namely Chain 1:
Farmers, Chain 2: Traders Cattle, Chain 3: Employers Butcher, Chain 4: Merchant
Retailers, Chain 6: Consumer, where each of the chain have their respective
roles. The flow patterns beef No 3 that the product
flow, financial
flow and
Development for Human Welfare 2016
137 information flow, product flow flowing from
the farmer to the consumer, financial flow flowing from consumers to farmers, and
the flow of information flows in both directions from farmers to consumers but
has not run optimally because The residual of the rest of the product.
Parties that play a dominant role in the chain of the beef is businessman
slaughterhouse. Management structure describe aspects that strengthen the
performance of each chain, aspects of the cooperation
agreement, transaction
systems, and partnerships. Distribution channels beef has two channels, namely
channel level 0 and level 1. efficient channel based on the value of marketing
efficiency that is on channel 0 level of 0.00, a favorable distribution margin
Ski Sbi and the shared values which are appropriate to contribute given by
each chain are involved. So would encourage the chain to keep doing
business in accordance with its function in the beef supply chain.
Recomendation
Recommendations are proposed to form a supply chain management, its
need the support from all players in the supply chain in earnest to be implemented
optimally. The formation of supply chain management is able to optimize the speed
of service time, creating prosperity among business operators along the supply
Chain By knowing the supply chain management of beef and determine the
factors, actors, objectives and scenarios that
make up
the supply
chain management efforts are needed for
further studies of attempts supply chain management through the study of the
development of value added products and financial aspects as well as the study of
business ethics in partnerships both in terms of farmers.
Party RPH should serve as the central governance of the supply chain of
meat to enhance its role in monitoring activities to the process of buying and
selling cattle life, pay attention to the feasibility of RPH both physically and
management,
inspection cattle
slaughtering is done in accordance with procedures and control the circulation of
beef both in quantity and quality. Employers should conduct cutting meat in
slaughterhouses to facilitate the control and circulation cuts of beef in the market
both in quality and quantity. Butchers and retailers should do the processing of beef
into other refined products so as to increase the added value and minimize
losses if beef is not sold out.
BIBLIOGRAPHY Pujawan. I Nyoman. 2005. Supply Chain
Management. Suarabaya: Penerbit Guna Widya.
Nazir, Moh. 2009. Metode Penelitian. Jakarta: Ghalia Indonesia.
Soekartawi. 2005. Ilmu Usahatani dan Penelitian Untuk Perkembangan
Petani Kecil. UI-Press. Jakarta. Sutarno. 2014. Analisis Efisiensi
Pemasaran Kedelai di Kabupaten Wonogiri. e-Journal Agrineca. 14
1: 1-10.
Tambunan TTH. 2003. Perkembangan Sektor Pertanian di Indonesia:
Beberapa Isu Penting. Jakarta: Ghalia Indonesia.
Yulianto P, C Saparinto. 2010. Pembesaran Sapi Potong Secara
Intensif. Jakarta: Penebar Swadaya.
Muh Zulfadhli Prasetyo, Yulianti Kalaba, Lien Damayanti, and Erny
138
DISCUSSION FROM PARALLEL SESSION
PAPER TITLE Analysis of Beef Supply Chain Management at Agribusiness
Based Slaughterhouse in UPTD of Animal Slaughterhouse of Palu
AUTHOR
Muh Zulfadhli Prasetyo, Yulianti Kalaba, Lien Damayanti, dan Erny
DISCUSSION QUESTION
- No Question
ANSWER -
SUGGESTION -
Explain more about the meaning of marketing efficiency
Development for Human Welfare 2016
139
ANALYSIS OF INFLUENCE OF MARKETING MIX AGAINST PURCHASE DECISION OF GROWING UP MILK ON THREE
SOCIO-ECONOMIC CLASS IN MALANG
Sunardi
1
, Jabal Tarik Ibrahim
2
, Anas Tain
3
1
Postgraduate Student on Magister Agribisnis UMM Jl. Bandung No. 1 Kota Malang, Jawa Timur.
corresponding author
:
sunardi_1971yahoo.com
2
Professor and Lecturer of Magister Agribisnis UMM corresponding author:jabaltarik1202gmail.com
3
Lecturer of Magister Agribisnis UMM corresponding author
:
tain_ummyahoo.co.id
ABSTRACT
In fact the changing of consumer behavior constantly demonstrates the importance of consumer research. The dynamic nature of consumer behavior causes the product
life cycle becomes shorter. Proper mapping of socio-economic class of consumer is important to enable manufacturers to provide the best products according to customer
wishes. The research objective is to obtain the explanation whether there is influence of the marketing mix product, price, place and promotion against purchase decision
of Growing Up Milks GUM product on three socio-economic classes lower, middle and upper and to discover the difference and the similarity among the class. The
study was conducted in Malang by using questionnaire and data processed by using Partial Least Squares as an alternative to Structural Equation Modelling. The results
shows that the product is significantly influence the purchase decision of GUM across all class. Price has a significant effect on the purchase decision only at lower and
upper class. Place and promotion did not significantly influence the purchase decision of GUM across all class. Variation changes in endogenous variable purchase
decision can be explained by the exogenous variables marketing mix, respectively 64.8 upper, 48.3 middle and 49.9 lower. Multi Group Analysis MGA
shown that there is no significant difference between the middle and lower classes. A significant difference between the upper and middle and between upper and lower is
on product and price. Upper class inclined to purchase GUM due to the quality of the product instead of design or product packaging. Price discount and lower price are
not a main consideration for upper class. Key Word
: Marketing Mix, Purchase Decision, Growing Up Milk Product, Partial Least Squares PLS, Socio-Economic Class of Consumer.
INTRODUCTION
Nielsen data show that the market size of milk market in Indonesia is
tremendous and the business value even reached 40 trillion IDRyear. Milk powder
and infant formula are dominant and contributeconsecutively 38 and 15
from the total value SWA, 2012. Delgado et al. 1999 stated that with population
growth, lifestyle changes, nutritional awareness,
and improvement
of education level, the demand for milk
continue to rise. Indonesia is at the early stages of a
period of strong economic growth, creating a wave of new Middle-class and
Affluent Consumers MACs that will grow in both size and purchasing power
through 2020, according to a new report by The Boston Consulting Group
BCG.With the fourth-biggest population in the world including a high proportion of
working-age people, a stable political climate, and strong local demand,
Indonesia’s economy is currently
Sunardi, Jabal Tarik Ibrahim, Anas Tain
140 Growing at 6.4 percent a year, such
growth is lifting millions from lower income socio-economic levels into the MAC
categories BCG, 2013
The marketing mix is a business tool used in marketing and is often associated
with the four Ps: Price, Product, Place, and Promotionand often crucial when
determining a product or brands offer.
Purchase decision is the process a customer goes through when buying a
product. It can be seen as a particular form of a cost
–benefit analysis. The buying decision model has gone through
lots of interpretation. Previous research on behavior of
milk consumer was made by Setiyanti et al 2009 on Marketing Strategy of
Clinical Enteral Nutrition Dairy Products in five hospitals in Jakarta concluded that
there are several factors that are quite prominent on the consumer when
consuming dairy nutrients which are educational
background, monthly
household expenditure and the availability of products. Inadequacy of this study is
less extensive research location that is only at five hospitals in Jakarta, so that
they could be extended another hospital that has the patients socio-economic
class middle to lower odds of having a different opinion on the use of infant
nutrition for premium prices.
Two main objectives of this research are : to obtain explanatory of the influence
of the marketing mix to the purchase decision of Growing Up Milk product on
the upper, middle and lower socio- economic class of consumers in Malang
and to determine the similarities and differences in the purchasing decisions of
the product between socio-economic class.
METHOD
Subject, Object and Place of Research
This study takes the subject Influence of Marketing Mix Against the
Purchase Decision of Growing Up Milk for children aged 1 -12 years in Malang,
while the object is a household that purchases of growing up milk products for
children aged 1-12 years. Research conducted in Malang where economic
growth is as high as 7.92 in 2014 and it well above the average of the national
economicgrowth amounted to only 5.02, also a typical urban that has a wide range
of socio-economic class. Quotation of Socio-economic Class
Family income
is the
most significant factor influencing childrens
milk consumers Sunarti, 2006. In this study socio-economic class is refer to
income per month and refer toMalang Minimum Wages MW for year of 2015.
MW calculated based on Need for Decent Living DL parameters, meaning that
people with income at MW will be able to meet the standards needs of a decent
living. State Minimum Wage to Malang in 2015 was 1,882,250 IDR correspond East
Java Governor Regulation No. 72 Year 2014 About Minimum Wage District
Municipality in East Java in 2015.
Table 1. Distribution of Socio-Economic Class Based on Income per Month
Socio-economic Class
Income per Month
in IDR Lower
1,882,250
Middle
1,882,250 –
3,764,500
Upper 3,764,500
Development for Human Welfare 2016
141
Design of Hypothesis
Data used in this study are primary data questionnaire taken by purposive
sampling technique.
Figure 1. Framework Analysis
The number of respondents for each socio-economic class is 100. To test
hypothesis using analysis Partial Least Squares PLS as an alternative to
Structural Equation Modeling SEM with framework analysis as shown by figure 1.
Variables and Research Instruments
Indicators are the variablesthat are observed
and called
as manifest
variables.It isrecommended
that researchers use four or more variables. If
only use two variables, the analysis would be problematic. In connection with it, if
only to use one measurement, errors cannot be made a model. The models that
use only two indicators per latent variable will be difficult to identify under-identified
and estimates the error will not be reliable.
Latent variables are variables that are not observed un-observed variables
so called constructswere measured using indicators.
Latent variables
include independent,
intermediaries and
dependentvariables. The construct is a kind of specific concepts that are in a
higher level of abstraction and created for the purpose of certain theories. The
concept of consciously produced by scientists for scientific purposes.
Exogenous variables
are independent variables with no previous
cause variable. Endogenous variables are variables that can be as an intermediary
for the effects of other exogenous variable or variables intermediary, and is the cause
of the other intermediate variables and the dependent variables.
In this
study there
are fourexogenous variables that will be
analyzed namely: Product, Price, Place, Promotion
and one
endogenous namelyPurchase Decision. Each variable
will be developed into some of the item in question and accompanied by five
alternative answers that would be measured using a Likert scale with a
weight value of 1 for an answer Strongly disagree to 5 to answer Strongly
agree.Data from the Likert scale is ordinal data, so this needs to be changed
into interval data with Method Successive Interval MSI that is commonly used in
attitude measurement. Interval data is processed by using PLS as part of SEM.
Validity and Reliability Test
Validity correlates with levels of accuracy or precision achieved by an
indicator in judging something or accurate measurement of what is supposed to be
measured Ferdinand, 2005. Testing the validity of the instruments of the questions
done using convergentvalidity test with reflective indicators were assessed based
on the loading factor correlation between the scores of items components score
with a score constructs. Validity is also measured by discriminant validity test was
assessed by cross loading measurements of the construct. Discriminant validity
relates to the principle that indicators of the different constructs should not be
highly correlated.
Reliability is an index indicating the extent to which a measuring device in this
study is a questionnaire which is an indicator of a variable or construct can be
trusted or relied upon Singarimbun, 1995.
Reliability indicates
the consistency of the measurement results in
case of gauges that are used by different people at the same time or used by the
. .
. .
. .
.
Promotion X4
X2.1 X2.2
X2.3 X2.4
X2.5 X3.1
X3.2 X3.3
X3.4 X3.5
X3.6 X3.7
Y1.1 Y1.2
Y1.3 Y1.4
X1.5 X1.6 X1.7 X1.8
H1H5H 9
H2H6H 10
H3H711 H4H8H1
X4.1 X4.2 X4.3 X4.4 X4.5 X1.1 X1.2 X1.3 X1.4 X1.5
Product X1
Price X2
Place X3
Purchase Decision
Y1
Sunardi, Jabal Tarik Ibrahim, Anas Tain
142 same person at different times. The
technique used to calculate the reliability index in this study were using PLS is
Composite Reliability. Testing Data
Data analysis in this research uses the PLS as an alternative to SEM. The
software that is used for the analysis is SmartPLS version 3.0. According Abdillah
and Jogiyanto 2015, testing the measurement model used to validate the
research model. Two main parameters are
testing the
construct validity
convergent and discriminant validity and testing of internal consistency reliability
construct. Convergent
validity test
parameters seen from Variant Average score Extracted AVE which should be
0.5. To test the discriminant validity of the appraised value of the composite
reliability values should be 0.7.
RESULT AND DISCUSSION
Overview of Research Location
This research was conducted in Malang located in East Java province.
Malang is headed by a mayor and the area consists of 5 sub-districts namely
Blimbing,
Klojen, Sukun,
Kedungkandang, and Lowokwaru. The population of the of Malang in 2014 based
on data of the population enrolled in the Department of Population and Civil
Registration Malang as many as 865,011 peoples spread over 57 villages. Number
of children 1-12 years in 2014 reached more than 180 thousand, or about 20 of
the total population and close to national profile. The number of families in the same
year is as much as 204,179 families. Descriptive Statistics
Descriptive analysis, which provides a descriptive overview of empirical or on
the data collected in the study. The data comes from a respondents answers on
the items contained in the questionnaire and will be grouped and tabulated then
given an explanation. This study will present characteristic of the respondents
for each socio-economic class as follows:
Table 2. Distribution of Respondents by Gender
Gende r
Socio-economic Class Lower
Middle Upper
n n
n Male
12 12
31 31
2 2
22 Femal
e 88
88 69
69 7
8 78
Total 10
100 10
100 1
10
Respondents for all socio-economic classpredominantly female with the
proportion 69 - 88 of the total respondents as presented in Table 2. This
happeneddue to in general women are responsible for the provision of household
consumption, in accordance with what is stated by Engel, et al 1994.
Table 3. Distribution of Respondents by Education Level
Education Socio-economic Class
Lower Middle
Upper n n n
High School 41 41 33 33
9 10
Bachelor Degree
34 35 52 53 62 63 Master
Degree 5
5 18 19
Doctoral Degree
1 1
5 5
Others 24 24
8 8
3 3
Total 99 100 98 100 97 100
According to
Suryani 2012
education is one of the variables that is often used as indicators in measuring
social class. In general, the higher the level of education, the higher the social
class. Higher education will also provide opportunities and better access to
employment. Table 3 shows that the total number of respondents in social class on
the Bachelor, Master and Doctoral degree are very high at 87, while lower social
Development for Human Welfare 2016
143 class which is only 34. As many as 41
of respondents the lower social classes have a high school education, while in the
upper social class respondents the number is only 9 for high school
education.
Table 4. Distribution of Respondents by Job Job
Socio-economic Class Lower
Middle Upper
n n
n Private
Worker 38
38 41
41 23 25 Bureaucrat
3 3
24 24 38 41
Entreprene ur
14 14
9 9
12 13 Others
45 45
26 26 19 21
Total 100 100 100 100 92 100
Job is also one of the variables that isoften used as indicators in measuring
social class. This is understandable because the work is directly related to a
persons position in society. People consider that there are certain jobs that
prestigious
show social
class or
otherwise, Suryani 2012 Table
4.Shows that
total combination of three jobs: private worker
25, bureaucrat41 and entrepreneur 13 are equal to 79 in total for upper
class, while the same categoryfor the lower classis only 51 in total sum of
38,3 and 14.
The researchers also added some other respondent profiles to better explain
the differences of the characteristics of respondents among the socio-economic
class, namely: 1 Electrical Power, the data show the
majority of upper-class respondents 76 to install electrical power 1300 watt
- 2200 watt for their homes, while the lower class respondents dominated 450
watts - 900 watts up to 81. 2 Fuel kitchen, the data for upper class tend to
use 12 kg LPG as a fuel with a proportion of 55 is much higher than the lower
social classes that only 7. The majority of lower class 87 using 3 kg LPG as
fuel for their households due to these types of government-subsidized and can
be bought at a cheaper price. Even in the lower
social classes
still found
respondents who use firewood as their fuel. This may happen because some
respondents live in the sub-urban or even in the countryside in of Malang.3
Building house size, 250 m
2
- 500 m
2
owned by upper-class 63 compared to the lower class were only 18. As
many as 78 lower class has a house size of 50 m
2
- 75 m
2
.4 The land size,500 m
2
- 1000 m
2
owned by the upper class also tend to be higher at 49 compared
with the lower class that only 18. Most of the lower class 79 has a land size of
100 m
2
- 250 m
2
.
Inferential Statistics
Inferential statistics,
statistics inductive or statistical probability, is a
statistical technique used to analyze the sample data and the results apply to the
population. Consistent with the hypothesis that has been formulated, the inferential
statistical data analysis in this study are measured using SmartPLSv3.0. PLS
model evaluation is done by evaluating 1 measurement model outer model and
2 the model structure inner model Abdillah and Jogiyanto, 2015.
Outer model is a measurement model to assess the validity and reliability
of the model. Through a process of iteration gradually estimation techniques
to generate the best value algorithm, parameter
measurement model
convergent validity, discriminant validity, and composite reliability. Inner model is a
structural model to predict the causal relationships between the latent variables.
Through the bootstrapping process repetitive
sampling or
resampling method,
test parameter
T-statistic obtained to predict the existence of
causality. To simplify the presentation of the
results of this study, the detailed analysis phase will only be applied on the upper
Sunardi, Jabal Tarik Ibrahim, Anas Tain
144 socio-economic class on alone while the
middle and lower class will only be presented the final result in the form of
inner analysis results.
Outer Testing Model Measurement Model for Upper Socio-Economic
Class
Building a
Conceptual Model
Analysis of Structural Equation with SmartPLS Program. Structural analysis
model that is built in the first phase of this research
and continue
with determinationof coefficient of structural
model. Determine
the Coefficient
of AStructural Model
Result of counting the coefficient of the structural model shown by figure 2:
Figure 2. Coefficient Structural Equation Model
A concept and modeling studies cannot be tested in a model predictive
relational and causal relationship if not passed the stage of purification in the
measurement model. The model itself is used to test the construct validity and
reliability testing instruments. Validity test is done to determine the ability of research
instrument measure what should be measured. Instrument reliability test used
to know
consistency measuring
instrument in measuring a concept or it can also be used to measure the
consistency of respondents in answering the questions in the questionnaire items.
Discriminant validity to the principle that the measurement of a different
construct should not be correlated with height. Discriminant validity occurs when
two different instruments that measure two
different constructs
predicted uncorrelated produce scores that are not
correlated. Discriminant validity was assessed by measuring the cross loading
of the construct. Rated cross loading 0.7 is considered to have good discriminant
validity.
Test Validity - Convergent Construct Validity
Table 5. Test Results Convergent Validity with Outer Loading for Indicators with the
value of Factor Loading Original Sample O 0.5 and P value 0.05
Original Sample
O T Statistics
|OSTERR| P
Values
X1.2 Product 0.776
9.899 0.000
X1.7 Product 0.886
22.901 0.000
X1.8 Product 0.830
13.749 0.000
X2.1 Price 0.868
10.021 0.000
X2.2 Price 0.499
2.427 0.016
X2.3 Price 0.552
2.964 0.003
X3.3 Place 0.542
3.111 0.002
X3.4 Place 0.869
8.350 0.000
X3.5 Place 0.789
7.153 0.000
X4.3 Promotion 0.803
3.848 0.000
X4.4 Promotion 0.649
4.046 0.000
Y1.1 Purchase Decision
0.829 11.560
0.000 Y1.2 Purchase
Decision 0.824
20.811 0.000
Y1.5 Purchase Decision
0.809 20.419
0.000
Test construct validity consists of a test
of convergent
validity and
discriminant validity. Construct validity indicates how well the results obtained
from the
use of
an appropriate
. .
. .
. .
.
Prod uct
X1.2 X1. X1.4 X1.5 X1.6 X1.7 X1.8
X1.1
Price
Place
X4.1 X4.2 X4.3 X4.4 X4.5 X2.1
X2.2 X2.3
X2.4 X2.5
X3.1 X3.2
X3.3 X3.4
X3.5 X3.6
X3.7 Y1.1
Y1.2 Y1.4
X1.5 0.776 0.213 0.407 0.341 0.886
0.830 0.868
0.499 0.552
0.004 0.160
0.545 0.420
0.542 0.869
0.789 0.385
0.304 0.829
0.824 0.435
0.809
0.453 0.627
0.803 0.649 0.434
Promotion Purchase
Decision 0.332
0.492 Y1.3
Development for Human Welfare 2016
145 measurement theories that are used to
define a construct. In PLS with reflective indicators of
convergent validity was assessed by loading the form of outer loading factor
correlation between scores item component
score with
the score
constructs indicators that measure the construct. Convergent validity can also be
measured by the Average Variance Extracted AVE. Loading factor Original
Sample O 0.5 is considered significant.
Convergent Validity of the test with the Outer Loading first stage above it is
known that there are several indicators that do not meet the criteria or rule of
thumbs is the indicator with the Original Sample value O 0.5 and a P value
0.05, as X1.1, X1.3, x1.5, X1.6 latent variable indicator products, X2.4, X2.5
latent variable indicator price, X3.2, X3.1, X3.6, X3.7 a latent variable
indicator, X4.2, X4.1, X4.5 indicator latent
variables sale,
Y1.4, Y1.3
indicator of latent variable purchase decision. Sample beta unstandardized
original score is used to view the predictive nature of independent variables
on the dependent variable, positive or negative. Some of these indicators is
declared invalid so could not be included in the test with the Outer Loading
Convergent Validity next.
Convergent Validity Test continue by eliminating all invalid indicator with low
Outer Loading 0.5 and P Value 0.05, such X1.4, indicators of latent variables
product, X4.2 indicator latent variables sale.
Convergent Validity Testing with the AVE. Convergent Validity Testing is also
done with AVE known that the latent variables AVE scale value 0.5 so we
need a re-estimation by eliminating invalid indicator is X1.4, latent variable indicator
products, X4.2 latent variable indicator promotion.
Convergent Validity Testing With AVE afterEliminates Indicators That
Invalid.
Table 7. Convergent Validity Testing Results with Indicators the AVE aftereliminating
all Invalid Indicators
AVE Remarks
Product 0.740
valid Price
0.508 valid
Place 0.628
valid Promotion
0.550 valid
Purchase Decision 0.738
valid
Convergent Validity Testing with AVE after re-estimation by eliminating
invalid indicator is X1.4, latent variable indicator products, X4.2 latent variable
indicator sale AVE result 0.5 so that it can be said that all indicators valid for
each of the marketing mix variables. Furthermore,
the structural
model coefficients were calculated after the
validity and reliability test is completed.
Figure 3. Structural Model Coefficient After Eliminates Invalid Indicators
. .
.
Product X1.2 X1.7 X1.8
Promotion Price
Place Purchase
Decision
X4.3 X4.4
X2.1 X2.2
X2.3
X3.3 X3.4
X3.5 Y1.1
Y1.2 Y1.5
0.854 0.897 0.829
0.776 0.658
0.699
0.644 0.891
0.823 0.886
0.848 0.844
0.636 0.834
0.648
0.062 0.018
0.413 0.476
Sunardi, Jabal Tarik Ibrahim, Anas Tain
146
Test Validity Construct Validity with Discriminant
Table 8. Construct Validity of Test Results With discriminant validity Price
Purchase Decision Product
Promotion Place
X1.2 0.590
0.690 0.854
0.418 0.293
X1.7 0.376
0.594 0.897
0.457 0.403
X1.8 0.291
0.563 0.829
0.471 0.354
X2.1 0.776
0.650 0.541
0.249 0.255
X2.2 0.658
0.312 0.147
0.101 -0.129
X2.3 0.699
0.316 0.214
0.060 -0.182
X3.3 -0.082
0.159 0.200
0.435 0.644
X3.4 0.059
0.213 0.377
0.429 0.891
X3.5 0.148
0.249 0.355
0.214 0.823
X4.3 0.046
0.251 0.200
0.636 0.404
X4.4 0.261
0.350 0.526
0.834 0.266
Y1.1 0.618
0.886 0.636
0.328 0.176
Y1.2 0.532
0.848 0.623
0.325 0.255
Y1.5 0.564
0.844 0.600
0.406 0.260
From the test result data with Cross Loading Discriminant Validity can be seen
that the gauges of a different construct that does not correlate with high indicated
by the numbers that are outside the box with dashed lines.
Reliability
Test Reliability with Composite Reliability
Table 9. Results of the Composite Reliability Test Reliability
Composite Reliability
Remarks Product
0.895 Reliable
Price 0.755
Reliable Place
0.833 Reliable
Promotion 0.706
Reliable Purchase
Decision 0.894
Reliable
In addition to the test of validity, PLS also reliability testing to measure the
internal consistency of measurement tools. Reliability indicates the accuracy,
consistency of measuring instrument in measuring. In the PLS method Composite
Test Reliability. Rule of thumb Composite Reliability value must be greater than 0.7
even if the value of 0.6 is acceptable. But the real test of internal consistency is not
absolutely necessary if the construct validity has met, as is a valid construct
reliable, otherwise construct reliable is not necessarily valid Cooper et al in Abdillah
and Jogiyanto, 2015.
Model Inner Testing Testing of A Structural Nature
Inner Analysis Model Testing Structural Model is conducted to see the
relationship between
endogenous constructs with exogenous constructs
based on the results of data processing. The relationship is tested with the value of
T Statistics Validity Correlation, the level of significance, the most dominant
weighting factor, and the value of R
2
Coefficient of Determination which is a close relationship models.
Further analysis construct reflective structural model testing to predict causal
relationships between
variables or
hypothesis testing. In this test will count PLS Path Coefficient Mean, STDEV and
T Statistic and P Value. According Abdillah and Jogiyanto 2015, the size of
the significance of hypothesis used comparative value of the T-table and T-
statistics. If the value of T-statistics are higher than the value of the T-table,
means that the hypothesis is supported. For the 95 percent confidence level alpha
5 percent then the value of the T-table for two-tailed hypothesis two-tailed was =
Development for Human Welfare 2016
147 1.96 and hypotheses of the tail one-
tailed was = 1.64.
Table 10. Results of Path Coefficient and P Value upper socio-economic class
Original Sample
O T Statistics
|OSTERR| P
Values
Product Purchase Decision
0.476 5.271
0.000 Price Purchase
Decision
0.413 4.882
0.000
Place Purchase Decision
0.018 0.215
0.830 Promotion Purchase
Decision 0.062
0.754 0.451
The Results of Hypothesis Testing To Consumer Upper Class:
H1: Suspected marketing mix product affect the purchase decisions GUM for
upper class consumers in Malang. Results: H0 is rejected, because the T
statistic 5.271 T table 1.960 and P value 0.000 0.05 means that the
product significantly influence decision making on upper class consumers in
Malang. H2: Suspected marketing mix price
affect the purchase decisions GUM for upper class consumers in Malang.
Results: H0 is rejected, because the T statistic 4.882 T table 1.960 and P
value 0.000 0.05 means the price significantly influence decision making on
upper class consumers in Malang. H3: Suspected marketing mix place
affect the purchase decisions GUM for upper class consumers in Malang.
Results: H0 is accepted, because T statistic 0.754 T table 1.960 and P
value 0.451 0.05 means that the place does not significantly influence decision
making on upper class consumers in Malang.
H4: Suspected marketing mix promotion affect the purchase decisions GUM for
upper class consumers in Malang. Results: H0 is accepted, because T
statistic 0.215 T table 1.960 and P value 0.830 0.05 means the sale does
not significantly influence decision making on upper class consumers in Malang.
Result the value of R Square in Structural Test Model Inner Model is as follows:
R Squares Purchase Decision
0.648
Coefficient of determination used to describe the proportion of dependent
variables could be explained by the independent variable. The value of
coefficient of determination is 0 R
2
1. The value of R
2
is small means that the ability
of exogenous
variables in
explaining endogenous variables is very limited. A value close to one means that
independent variable
exogenous provide almost all the information needed
to predict the dependent variable endogenous.
From the above data it is known that the value of R
2
is equal to 64.8, meaning that the variation changes endogenous
variables purchase decisions can be explained by the exogenous variables the
marketing mix amounted to 64.8, while the rest 35.2 is explained by other
variables outside the model proposed by this study i.e. family, life style, reference
group and role status.
All hypotheses for the middle classis rejected except for H1 H0 product due
for T statistic 6.672 T table 1.960 and P value 0.000 0.05 so that the product
significantly influence decision making in the
middle socioeconomic
class consumers in Malang, while the value of
R
2
is equal to 48.3. For all hypotheses for the lower
classes is rejected except for H0 to H1 products for T statistic 6.898 T table
1.960 and P value 0.000 0.05 and H2 price for T statistic 2.103 T table
1.960 and P value 0.036 0.05 so that the products and prices significantly
influence decision making in the lower socioeconomic
class consumers
in Malang, while the value of R
2
is equal to49.9.
Sunardi, Jabal Tarik Ibrahim, Anas Tain
148
Multi Group Analysis MGA
Analysis by groups such as age, gender or country is a common modeling
needs and the program is written from Smart PLS Lowry and Gaskin, 2014. In
this study a comparison between groups of socioeconomic class refer to a following
formula:
� = � �ℎ − � �ℎ
[√ −
+ − ∗ . �. +
− + −
∗ . �. ] ∗ [√ + ]
Path
s1
: Path Coefficient Group 1 Path
s2
: Path Coefficient Group 2 m : Sample number of Group 1
n : Sample number of Group 2 S.E.
s1
: Standard Error-Inner Model Group 1 S.E.
s2
: Standard Error-Inner Model Group 2
The purpose of this MGA is to compare the effect of the marketing mix to
purchasing decision between socio- economic classes. The comparison is
done respectively as follows: Comparison between Upper to Middle
Class, Middle to Lower Class, and the Upper to Lower Class.
The analysis is performed by calculating T-Statistics and P-Value on
each lane. Results of the analysis represented by following table where
Comparative Effects of Marketing Mix Buying Decision against Upper and Lower
Class
Path of Direct Impact
Coefficient of Direct Impact
T- Statistic
p- value
Upper Lower Product
Purchase Decision
0.476 0.565 -0.727
0.468
Price Purchase
Decision 0.413 0.181
1.920 0.056
Place Purchase
Decision 0.018 0.136
-0.988 0.324
Promotion Purchase
Decision 0.062
- 0.016
0.637 0.525
Note:
Significant at 10 level
From the above data it is known that there are no significant differences in the
marketing mix on purchasing decisions among the middle class to the lower class.
But there is a difference significant influence on purchasing decisions of
marketing mix between upscale well with the middle class variable price and
product or lower class variable price.
Differences in perceptions between the upper class and lower class can also
be explained by comparing the results of the descriptive analysis questionnaire that
the indicator X2.2 and X2.3 variable price as follows:
X2.2. I always buy GUM product because the price is cheaper than other
products
Consumer Statement
Socio-economic Class Upper
Middle Lower
Strongly Disagree
Disagree 66
42 36
Neutral 13
15 17
Strongly Agree Agree
21 43
47
The dominant attitude upscale strongly disagree and disagree 66,
while the same attitude on the middle and lower classes respectively only 42 and
36. This result shows that the upper class has a different attitude to the middle
and lower classes.X2.3. I always buy products because there is a rebate
discount
Consumer Statement Socio-economic
Class Upper
Upper Upper
Strongly Disagree Disagree
60 40
32 Neutral
12 16
16 Strongly Agree
Agree 28
44 52
The dominant attitude of upper- classis strongly disagree and disagree
60, while the same attitude on the middle and lower class respectively only
40 and 32. This resultshows that the
Development for Human Welfare 2016
149 upper class different attitude to the middle
and lower classes.
CONCLUSION
Based on the analysis of the data processing of the obtained appropriate
several conclusions
as research
objectives as follows. Variable of product and price is an element of the marketing
mix that significantly influence the purchasing decisions of GUMfor upper
and lower class in Malang, while for middle class the variable is only product.
Similarity among consumers class upper, middle and lower is on variable of
product that
significantly influence
purchasing decisions of GUM product. MGA has shown that the differences
between upper and middle class in purchasing decisions of GUM product is
on the variable of product and price. MGA also shown that the differences between
upper and lower class in purchasing decisions of GUM product is on the
variable of price, but there were no differences between lower and middle
class in purchasing decisions of GUM product in Malang.
REFERENCES
Books
Abdillah, Willy dan H.M., Jogiyanto. 2015.Partial Least Square Alternatif
Structural Equation Modeling SEM Dalam
Penelitian Bisnis
. Yogyakarta: Andi Offset.
Cooper, D. R, and Pamela S. S. 2001.Business Research Methods,
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th
Edition , Homewood: Mc. Graw
– Hill.
Engel, James. F; Roger D. Blackwell and Paul W. Miniard.. 1994. Perilaku
Konsumen Jilid 1. Diterjemahkan
oleh :Budiyanto. Jakarta: Binarupa Aksara.
Ferdinand, Augusty.
2005.Structural Equation Modeling Dalam Penelitian
Manajemen , Edisi 2, Semarang:
Bagian Penerbitan UNDIP. Delgado, C., M. Rosegrant, H. Steinfeld,
S. Ehui, and C. Courbois. 1999. Livestock to 2020. The Next Food
Revolution. Washington
DC: International Food Policy Research
Institute IFPRI, FAO., and ILRI .
Singarimbun, Masri.
1995.Metode Penelitian Survei
, Edisi 2, Jakarta: LP3ES.
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, Yogyakarta: Graha Ilmu.
Journal Article Lowry, Paul Benjamin and Gaskin,
James . 2014.Tutorial: Partial Least Squares PLS Structural Equation
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When to Choose It and How to Use It
, IEEE
Transactions On
Professional Communication, Vol. 57, No. 2, June 2014.
Setiyanti, Ety Sri, Agus Maulana, dan Idqan
Fahmi .
2009.Strategi Pemasaran Produk Susu Nutrisi
Enteral Klinikal , Jurnal Manajemen
Agribisnis, IPB, Vol 6 No. 2 tahun 2009
Sunarti, 2006.
Faktor-Faktor Yang
Mempengaruhi Susu Formula Anak Pada
Keluarga Berpendapatn
Rendah Kasus
Di Kelurahan
Tegallega Dan Kelurahan Babakan, Kecamatan Bogor Tengah, Kota
Bogor . Skripsi. Program Sarjana
Ekstensi Manajemen
Agribisnis Fakultas Pertanian IPB.
Newspapers Reports Magazines
Report of The Boston Consulting Group BCG, 2013 :
Asia’s Next Big Opportunity: Indonesia’s Rising
Middle-Class and
Affluent Consumers.
BCG. http:www.bcg.commediaPressRe
leaseDetails.aspx?id=tcm:12- 129295
Sunardi, Jabal Tarik Ibrahim, Anas Tain
150 Top 250 Indonesia’s Original Brands
2012, Swa Business Magazine, Edition 14
th
2012, Ekonomi Bisnis Pemasaran
, http:swa.co.ideditiontop-250-
indonesia-original-brands-2012- swa-edisi-142012
Development for Human Welfare 2016
151
DISCUSSION FROM PARALLEL SESSION PAPER TITLE
Analysis of Influence of Marketing Mix Against Purchase Decision of Growing Up Milk on Three Socio-Economic Class
in Malang
AUTHOR
Sunardi, Jabal Tarik Ibrahim, Anas Tain
DISCUSSION QUESTION
- Do the customer consider about local and imported milk
when the want to buy? -
Why lower level and higer level economic respondent both choose price as the consideration?
ANSWER -
No, they consider the price more than the brand -
Although they have the same preference, the reasons are difficult
SUGGESTION -
In my opinion, upper class will not unit consider about the price of product milk however, it wull be different for
lower class. They may consider about price of milk -
Clarifity the reasons for choosing the price as preference to buy GUM, to find clearer reasons
152
TRANSACTION COST ANALYSIS ON CARDAMOM MARKETING IN PADASARI VILLAGE, CIMALAKA DISTRICT, SUMEDANG
REGENCY
Ermalinda Zebua
1
,Juarini
2
, and Nanik Dara Senjawati
3 1
Magister of Agribusiness, Faculty of Agriculture, Universitas Pembangunan Nasional “Veteran” Yogyakarta
2
Department of Agribusiness, Faculty of Agriculture, Universitas Pembangunan Nasional “Veteran” Yogyakarta
3
Department of Agribusiness, Faculty of Agriculture, Universitas Pembangunan Nasional “Veteran” Yogyakarta
Jl. SWK 104, Lingkar Utara Condongcatur, Yogyakarta 55285 corresponding author:ermalindazebuagmail.com
ABSTRACT
The high exportsand domestic demandson the cardamom commodity make a good prospect for an agribusiness. In Padasari village, many farmers have been cultivating
cardamoms on their private lands as well as the public land owned by Perum Perhutani. However, this agribusiness has not supported yet by the adequate institutional.
Consequently, the condition has affected tot he farmers
’ bargaining position and the market information availability. The incurred transactions usually happen due to the asymmetric
information among farmers as sellers. The cardamom farmers have two marketing channels. Firstly, the farmers directly sell their harvests to the wholesalers defined as
channel I. Secondly, the farmers sell the harvests to the collector defined as channel II. This research aims :to analyze the transaction cost incurred by the farmers and their margin
in the two marketing channels, to analyze the marketing margins for farmers and collectors, to investigate the difficulties in forming farmer groups. The snowball technique is used to
determine respondents. The analyses include descriptive analysis, transaction cost analysis, and margin analysis. The results show that the transaction cost incurred by the
farmers in channel I is higher than in channel II. However the margins in the two channel were not different. If the dried cardamom harvests are sold, the farmers
’ margin would be higher than the collector’s margin in channel II. The non-optimal government support and
the uneven farmer consciousness with respect to the importance of institutional have become the obstacles in forming the cardamom farmer group.
Keywords: Transaction Cost, Institutional, Marketing Channel, Marketing Margin
INTRODUCTION
In 2015, exports on Indonesian spices commodities increased by 28.7 .
One of important spices was Cardamom Ministry of Trade, 2015. Besides this
export potential, domestic demands for cardamom is also high enough. For
example, traditional medicines industries require 3,000 tons of cardamom per year
Triwahyudi et al., 2015. The cardamom prospect has attracted people of Padasari
Village, Cimalaka District in Sumedang Regency. Many farmers in the village
have been cultivating cardamoms on their private lands as well as the public land
owned by Perum Perhutani. Sufficient information related to
cardamom’son-farm and
off-farm activities is needed. Therefore, farmers
are required to have capacity as a prerequisite to participate in agricultural
development.This capacity can be can obtained
trough institutional
development. Farmers’ institutional is
institution that farmers are in the region of locality local institution, and also a
membership organization
or cooperationthat farmers become the
members. The
institutional
Ermalinda Zebua,Juarini, and Nanik Dara Senjawati
153 includesfarmers organizations and also
the rulesrule of the game or rules of behaviorwhich determine the patterns of
action and social relations, as a social cohesion units. The real form of the
institution is farmer groups Anantanyu, 2011 .
Agribusinesson cardamom
commodity in Padasari Village produced primary products and it has not supported
yet by adequate institutional. Cardamom farmers in the village Padasari were not
well coordinated in form of cardamom farmer groups. Cardamom farmers in the
villagewere still runningtheir business individually. Consequently, the condition
has affected to the farmers
’ bargaining power and the market information
availability. Inspired by Woldie and Nuppenau
’s research
2009, this
study used
transaction cost approach besides the marketing margin to explain cardamom
marketing and its institutional in Padasari Village. Transaction costs are costs
incurred due to asymetric information in conducting a transaction Yustika, 2008.
This asymetric information is related to perfect market competition in developing
countries often do not work as they should, so the farmers are disadvantaged
Soekartawi, 2013.Moreover, farmers with the small scale of farming tend to be
in a subordinate position due to lack of information. Lack of information about
quality, appropriate price, and capital, giving an opportunity to those who are in
superordinate position wholesaler or collector traders middlemen for toying
pricesSumardjo et al, 2004. Even Herawanto and Himawan 2012 stated
that the middleman was still quite dominant in the cardamom marketing.
Thus, transaction cost plays a central role in resource allocation decisions Cuevas,
2014.
Inequality between
economic players in the transaction is a serious
problem. The inequality can manifest in bargaining
power and
asymmetric information. Therefore, it is crucial to look
for mechanisms
and rules
designinstitutions that aims to establish economic
equality between
actors Yustika, 2008.
Thus,the research’s aims were 1 to analyze the transaction cost incurred by
the farmers through the two marketing channels, 2 to
analyze farmers’ marketing margin in the two marketing
channels, 3 to analyze marketing marginfor farmers and collectors, and 4
to investigate the difficulties in forming farmer
groups.Measuring transaction
costs and marketing margin, and also investigating the obstacles in forming
far mers’ group are important for improving
farmers’ acces to the market as well astheir bargaining power. In addition,
those are also important for government’s policy and decision making’s perspective.
METHODS
This study was conducted in March 2016 in Padasari Village, Cimalaka
District, Sumedang Regency, West Java. The location was decidedintentionally
purposive. Whereas the characteristics of the Padasari Village support the
development of various commodities Rajati et al., 2006. In addition, Perum
Perhutani through Community-Based Forest Management CBFM program
also helped in providing the lands.
The data used in this study are primary and secondary data. The primary
data obtained through surveys and observations. Respondents in this study
are cardamom farmers, collectors or middlemen and wholesalers.They were
determined by using the snowball technique. Cooper and Emory 1999
stated that the snowball design applied to a condition in which respondents were
difficult to be identified and appropriate to be placed through the network.
The data of cardamom farmers was not available. This is why the cardamom
farmers that became the respondents were farmers that have been cultivating
cardamoms in public lands owned by Perum Perhutani trough CBFM program.
Perum Perhutani has not applied profit sharig mechanism yet.
In marketing, the farmers face two choices. Firstly, the farmers sell their
154 produce to the wholesalers directly and
defined as channel I. Secondly, the farmers sell the produce to the collector
and defined as channel II.
Both of the alternatives have transaction costs for the farmers. Channel
I offered higher price than channel II. However, the transportation was not
easy.In channel II, the collector was in the same village.So this study hypothesized
that transaction costs incurred by farmers in channel I are higher than transaction
costs incurred by farmers in channel II. But in the fact, there were 15 farmers who
sold their produce trough channel I. While there were 9 farmers who sold their
producetrough channel II. There were 8 farmers in channel II that sold their
produce in dried condition. It meant the cardamom
was processed
before. Despite of the processing was still very
simple, it could enhance value added of the cardamom. From the facts regarding
with margin, this study also hypothesized thatmarketing
margingained by
the farmers in channel I was higher than
farmers’ margin in channel II, and margin gained by the farmers in channel II was
higher than the collector’smargin.
For testing the hypotheses above, this study used descriptive analysis,
transaction cost analysisand margin analysis before. Then Wilcoxon signed
rank test and Mann-Whitney test were used.
According to Abdullah et al. 1998 as cited by Hutabarat, 2012,the equation
used to calculate transaction costs are:
�� = ∑ �
�=
, 1
�� = Total transaction costs
�
= expenses are included in transaction costs.
The components of transaction costs can be detailed as costs incurredto search the
information, costs
incurred in
negotiations, and costs incurred in monitoring and enforcement.
Margin analysis also used in this study. According to Asmarantaka 2014 :
�
�
= � − �
�
� �
�
= � − �
�
2 Where,
�
�
= Marginon each level marketing agencies �
= Price at the consumer level marketing �
�
= Price at the farmer level producer �
= Sale price on each level marketing agencies
�
�
= The purchase price at every level marketing agencies
To calculate the marketing margin on farmers also used the formula :
� = � + �
3 �= Marketing Cost
� = Profit
For testing the statements which were hypothesized, Wilcoxon signed rank
Test and Mann-Whitney Test was used. According to Santoso 2010,
� =
−[ +
√ +
+
4 = minimum difference between two means of
ranks N
= number of samples
= +
� � +
−
∑
�
5 = number of sample 1
= number of sample 2
�
= sum of ranks �= variable code
� =
−[ √
+ +
6 The confidence interval was 95 and
z
table
± .
RESULT AND DISCUSSION
Farmer’s Characteristics Based on Age, Education, and Job.
The farmers who have been cultivating
cardamom in
Perum Perhutani’s lands in Padasari Village is
dominated by
middle-aged. Their
education level are largely elementary school.
Ermalinda Zebua,Juarini, and Nanik Dara Senjawati
155
Figure 1. Respondents Farmers by Age
Figure 2. Level of Education
All the
cardamom farmers-
respondentshas other activities as their main jobs, 75 of them were also farmers
cultivating rice fields, 16.67 as laborers, and 8.33 as traders.
Agribusiness Activities of Cardamom Farmers
The majority of farmers were interested in planting cardamom for its
easy maintenance. They did not need a lot of capital.The prices were relatively stable
in range 2.96-3.70.The farmerscould get additional income. However, there were
also farmers who have been cultivating cardamom just because of following to
others.
Cardamom typewhich
the farmersplanted is local species. Farmers
who have started a business about 10 years ago, initially bought seeds from
other regions.Then, they developed their own cardamom because it is easy to grow
and its clump easily escalates. Its maintenance is simple enough, just need
to be weeded. The weeding activity usually done along with cardamom fruits
picking. Most farmers did not give fertilizer because they thought that cardamom
doesn’t need it. However, there were also farmers who gave fertilizer such as
phonska, ZA and manure. The first harvest is usually about six months after
planting. Cardamom fruits can be picked every two months. At the harvesting time,
squirells usually appear to eat cardamom fruits due to its fragrance.
Cardamom post-harvest processing includes picking, sorting,washing and
drying. Drying process depends on the weather. In the rainy season, drying
process can require 10 to 14 days. After the drying process, the cardamom ready
for sale. Almost all the farmers solddried cardamom. Only one farmer-respondent
who soldcardamom to the collector without post harvest processing. The
selling price of
“wet” cardamom was only 0.37 per kg. On the contrary, dried
cardamom prices was in range 2.96-3.70 per kg.
In marketing, there were two cardamom marketing channel known :
Figure 3. Cardamom Marketing Chanel from Padasari Village
In summary, farm and productin level of the farmers was shown in Table 1.
Farmers
Collector Wholesaler I
Indu s
tries Exporters
Wholesaler II
156
Table 1. Farm and Production Level of Farmers
Variables Average
N=24 Standard
Deviation
Farming experience
cardamom 6.208 years
4.511 years
Farm land area 1843.333 m
2
1066.941 m
2
Production cost
11.19 8.59
Last cardamom production
12.233 kg 11.431 kg
Price at collector 2.97
0.57
Price at Wholesalers
3.37 0.14
Source : Primary Data, 2016
There were 14 farmers sold the last harvests to the wholesaler I, and there
was a farmer sold the cardamom to wholesaler II.In channel II, there were nine
farmers sold their harvests to the same collector.There were 4 farmers used
channel II due to quantity consideration, 3 farmers also used channel II due to
previous contract cash in advance with the colllector, and there is afarmerwho
didn’t sell dried cardamom because shedid not want to be bothered with the
post harvest
processing. Anotherfarmersold the produce to the
collector because of family relationship. While, the 15 others soldcardamom
harvest directly to wholesalers.There were 14 farmerssold cardamom to UD
Bersama, and the another sold cardamom to UD Mekar Jaya. The quantity of harvest
is not always become a consideration in this channel. There were farmers sold
their harvestsdirectly to wholesalers because of in conjunction with other
purposes in the town. Additionally, many farmers also sold cardamom to UD
Bersamadue to its owne
r’s hospitality and trust.
All of the farmers were not able to determine the price. They only followed
the market price or accepted the price offered by the buyers collector and
wholesalers. During the time, farmers usually inform each other about the price.
Nonetheless, farmers’ bargaining power remains low.
In conducting their business, 21 farmers are not assisted by any
supporting institutions, but 3 farmers were helped by collector. While the collector
was usuallyhelped by the Bank and wholesalers who became her partner.
There are some problems which were facedby the farmers. The problems
are remote lands site and conflicts emerging betweenthe farmers and pine
sap tappers working to Perum Perhutani. Cardamom plantsaround the pine trees
cleared because were considered deter
tappers’ work. Farmersalso worried about continuity theirbusiness because of no
contract details with Perum Perhutani. Other problems faced were pest squirrels
frequently consuming cardamom ready to harvest. Drought and the rainy season
also take effects. In dry season, many cardamom plants died. When the rainy
season, cardamom fruits are vulnerable moldy. In marketing, farmers complained
aboutlimited marketing channel and the price fluctuation which was very fast to
change.
Transaction Cost Analysis
Based on data obtained from the respondents, it is known that there were
transaction costs incurred by farmers on marketing channel I. The biggest
component of transaction costs is negotiation costs. According to Hobbs
1997 as cited by Woldie and Nuppenau 2009, transportation costs can be
considered as negotiation costs if they are specific to a given marketing channel
chosen. The average negotiation cost incurred 1.33. Then,the following cost is
the information and search costs by an average 0.1.
Table 2. Hypothesis testing Result 1 for Transaction Costs
N Mean
Rank s
Sum of
Ranks
Transactio n Cost II
– Transactio
n Cost I Negativ
e ranks 2
3 12.00
276.0 Positive
ranks .00
.00 Ties
1 Total
2 4
Source : Primary Data, 2016
While on the channel II,transaction costs incurred only information and
Ermalinda Zebua,Juarini, and Nanik Dara Senjawati
157 search costs, becausethe collector came
to the farmer. The average cost incurred 0.02.
Table 3. Hypothesis testing Result 2 for Transaction Costs
Transaction Cost 2 –
Transaction Cost 1 Z
Asymp. Sig 2- tailed
-4.229 .000
Source : Primary Data, 2016
Hypothesis testing
showed that
transaction costs incurred by the farmers on channel I higher than transaction costs
incurred on channel I. Marketing Margin Analysis
Based on hypothesis testing, farmers’ margin in channel I was not
different significantly with farmers’ margin in channel II. The hypothesis testing was
shown in Table 4 and Table 5.
Table 4. Hypothesis testing Result 1for Farmers’ Margin
Channel N
Mean Ranks
Sum of
Ranks
Farmers’ Margin
Margin Channel
I 15
11.70 175.50
Margin Channel
II 8
.12.56 100.50
Total 23
Source : Primary Data, 2016 Table 5. Hypothesis testing Result 2 for
Farmers’ Margin
Farmers’ Margin Mann-Whitney U
55.500
Wilcoxon W 175.500
Z -.291
Asymp. Sig. 2- tailed
.897
Exact Sig. [21- tailed Sig]
.776 Source : Primary Data, 2016
However, farmers’ margin in channel II was higher than the
collector’s margin. It was shown in Table 6 and Table 7.
Table 6. Hypothesis testing Result 1 for Farmers’ and the Collector’s Margin in
Channel II
N Mean
Ranks Sum
of Ranks
Farmers Collector
Farmers’ Margin
Channel II 8
12.50 100.00
Collector’s Margin
Channel II 8
4.50 36.00
Total 16
Source : Primary Data, 2016 Table 7. Hypothesis testing Result 1 for
Farmers’ and the Collector’s Margin in Channel II
Farmers’ Margin Mann-Whitney U
0.000
Wilcoxon W 36.000
Z -.3.451
Asymp. Sig. 2- tailed
0.001
Exact Sig. [21- tailed Sig]
.000 Source : Primary Data, 2016
Based on the result of analysis, transaction costs incurred by the farmers
in channel I was higher than transaction costs incurred by the farmers in cahnnel
II. The highest cost is transportation cost which was included to negotiation cost.
Transportation
cost was
dominant because the distance between Padasari
Village and town is 12 km Rajati et al, 2006. While the collector was in same
village with the farmers. However cardamom price level at the wholesaler
was higher than price level at the collector.
The high transaction costs and high level of price made a question about
margin obtained by the farmers. It was answered in the second hypothesis
testing. The result showed that farmers’
margin in channel I was not different significantly with farmers’ margin in
channel II. Even farmers’ margin in channel II was still higher than the
collector’s margin when the cardamom sold was dried.
The situation indicated limited choices for the farmers between the two
marketing channel. If the the farmers sell their produce to the wholesaler they have
158 to think about compensation for their costs
incurred. Therefore, it was important to look for new mechanism and rules design
institutional that can improve the situation.
To reduce the transaction cost and to encance bargaining power of the
farmers, it is important to develop farmers’ institutional. Farmers’ participation in local
institution such as farmers’ group can be considered
as a
manifestation of
empowered farmers Anantanyu, 2011. Susetiawan 2000 as cited by Anantanyu
2011 defined empowered farmer as a farmer politically can articulate his or her
interests, economically can conduct negotiation
process bargaining
in economic activities, socially can manage
and arrange his or her community, and culturally his or her existence admitted.
However, there are some obstacles
faced in building institutional capacity among the farmers particularly in forming
farmer groups. There were farmers whojustfollowing others in farming and
thougt that cultivating cardamom is not main job, thus they did not feel a need to
form
farmer groups.Besides
those obstacles, majority of farmers felt there
was no directionand support from related government
’s agencies. Thus, other institutional form that can be offered to the
farmers in Padasari village is association, dealing with the fact that cardamom is one
of strategic commodities.
CONCLUSION
Transaction costs incurred by the farmers on channel I higher than
transaction costs incurred on channel II.
Farmers’ margin in channel I was not different significantly with farmers’ margin
in channel II.Mostly farmers sold dried cardamom and theyreceived higher
margin than the collectors ’ margin.The
non-optimal government support and uneven
farmer consciousness
with respect to the importance of institutional
have become the obstacles in forming the cardamom farmer group. The research
strongly recommended
that the
cooperations from all stakeholders are required to build the institutional capacity.
ACKNOWLEDGMENT
The author would like to thank Dr. Ir. Juarini, MP and Dr. Ir. Nanik Dara
Senjawati, MP
in Universitas
Pembangunan Nasional
“Veteran” Yogyakarta for advice in this study.
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Malang.
160
DISCUSSION FROM PARALLEL SESSION PAPER TITLE
Transaction Cost Analysis on Cardamom Marketing in Padasari Village, Cimalaka District, Sumedang Regency
AUTHOR Ermalinda Zebua,
Juarini, and Nanik Dara Senjawati
DISCUSSION QUESTION
- What are the district goverment roles to help the factors
who may be in disadvantage position -
How to help farmers, so that they can get higest price
ANSWER -
The goverment are not aware of the problem -
Develop contralized system that meets half way between the farmers to the sellers
SUGGESTION -
Result are no clear -
Explain more why the negoitation cost is the biggest portion of transaction cost
- Write the explanation on the paper
Development for Human Welfare 2016
161
RICE SEEDS MARKET STRUCTURE IN EAST JAVA
Rini Dwiastuti
1
, Riyanti Isaskar
1
, Nur Baladina
1
, Tri Wahyu Nugroho
1 1
Sosioeconomic Agriculture, Agriculture Faculty, Brawijaya University Veteran Street, Malang 65145
corresponding author’s e-mail : rinidwi.fpub.ac.id riyanti_isyahoo.com
Abstract
Increasing agricultural productivity is strongly associated with good quality agricultural inputs, price and quality of management. The availability of input in this
case rice seeds, farmers still face difficult obstacles determines the sale value of the product, because the practice of monopoly and oligopoly often occur in agriculture.
The purpose of this study was to analyze the structure of the rice seed market in East Java. This research was conducted in three districts in East Java, namely:
Malang, Mojokerto, and Sumenep. Methods in reviewing the structure of the market by looking at indicators of the level of market concentration, product differentiation,
market entry barriers and level of knowledge is by using analytical tools market market share, CR4 Concentration Ratio for Biggest Four, Index Hirschman
Herfindahl, and Index Rosenbluth. Based on the results showed that the Rosenbluth index analysis tools are relatively suitable for measuring the structure of the rice seed
market in East Java, which is a competitive market. This is evidenced by the market concentration does not occur in the three districts. Product differentiation is not the
case, in which the varieties can be in the production of various forms of business units. There are no barriers to entry and exit in the market as evidenced by the
increasing number of producers in 2014-2015. Almost every manufacturer has knowledge of the location and the price of seed sources of origin, as well as
knowledge of the retail price of rice seed products and location-specific marketing. Keywords : market structure, rice seeds, competitive market
INTRODUCTION Classification marketing of rice seed
by way of distribution consists of a free market and market the program. The free
market markets include formal rice seed certified and informal non-certified; As
for the program consists of the distribution market through subsidies and direct aid
program
through Integrated
Crop Management Field School.
The results of the study in 1999 found that the overall phenomenon rice
farmers using labeled seeds around 30-40 per cent, the rest being self-produced
seeds are selected from the previous harvest PSE, 2000. Meanwhile, a study
in 2002 conducted by Rachman et.al. 2003 described the performance of seed
industry nationally characterized the phenomenon: 1 share of the seed
market is dominated by rice 2 seed certified superior controlled by the
government through price subsidies, 3 Center for Seed Control and Certification
is responsible for oversight seed quality, and PT. Sang Hyang Seri SHS and PT.
Pertani is the largest supplier of national seed requirements, 4 the existence of
the rice seed market is still weak, because most 60-70 of farmers to produce their
own seeds for farming purposes, and 5 the perception of farmers to use certified
seed is the dominant factor affecting national seed systems development.
Conditions of supply of rice seeds were predominantly from own production of the
local
farmers shift.
According to
information from sources at the Technical Implementation Unit UPT Pengawasan
dan Sertifikasi Benih Tanaman Pangan dan Hortikultura PSBTPH East Java
Province, found in East Java Province in
Rini Dwiastuti, Riyanti Isaskar, Nur Baladina, Tri Wahyu Nugroho
162 2014 has produced rice seeds certified
80 of total availability, or as much as 61,000 tons. While the results of the study
of primary data in the two sub sample was obtained that the availability of certified
rice seeds ranges from 82 to 99 Dwiastuti, 2016.
Based on Government Regulation on Seed Production System, that the
production lines of seed source BS Breeder Seed into scatter seeds ES
Extension Seed were ready to be planted by farmers there are two pathways
BAPPENAS, 2013. First, through the bureaucracy, starting from the delivery BS
from the Balai Besar Padi in Sukamandi to the Provincial Agriculture Office under
the coordination of the Directorate General of Food Crops to proceed to the
District Agriculture Office City through Balai Benih Induk BBI to produce seeds
basic FS Foundation seed, which is forwarded to the Balai Benih Unit BBU to
produce staple seeds SS Stock seed. Seed produced by BBU distributed to
farmer seed breeder who has been trained
to produce
seedlings for
distribution ES Extension Seed ready to be deployed to the farmers. Secondly,
through the cooperation partnership between the Research Institute with state
local enterprises for the production of basic seed SS to disseminate seed ES
which is ready for use by farmers. The line was shorter and handled by professionals,
especially in state-owned enterprises PT Sang Hyang Seri and PT Pertani.
But in the real condition occurs the phenomenon that the rice seed market
share in the province of East Java and Central Java is controlled by a private
breeder local; whereas in the province of West Sumatra and South Sulawesi, the
opposite occurs, the role of state-owned enterprises PT SHS and PT Pertani was
dominant in the marketing of seeds Rachman, et.al, 2003. Kediri and Ngawi
Regency as sample locations from East Java province shows that the market
share of PT SHS respectively 35 and 44, while PT Pertani respectively by
15 and 22, while the breeders private local respectively 50 percent and 33 per
cent. Total private breeder local in the province of East Java in 2014 as many as
580 business units, with various forms of business Dwiastuti, et.al, 2014. Diversity
includes the establishment of individual businesses, trade business UD, CV,
Limited
Liability Company
PT, Cooperative, Group breeder, farmer
groups and farmer seeds. The business unit UD form as many as 73 units, in the
form of a CV and PT each as much as 33 units and 22; while the largest business
unit in the form of individual 247 units. In addition, the phenomenon of migration
airy showed their rice seed between districts and between provinces. There
are 42 of respondents private breeder in Malang market the rice seed production
outside the district and 21 also sells to outside
of East
Java Province.
Meanwhile, respondents farmers spread over four districts of Malang regency
example using rice seeds produced by private breeders located outside Malang
Regency, which is derived from Jombang, Ngawi, and Mojokerto.
The study results Rachman, et.al 2003 described the structure of the rice
seed market in Indonesia are generally characterized by: 1 market share is
concentrated
in two
state-owned enterprises, namely PT SHS and PT
Pertani, 2 differentiated in terms of quality, varieties , and the levels or
classes of seeds SS and ES, 3 absence of entry barriers out of the
market, and 4 the price information according to the type and quality of seeds
is relatively easy to obtain. As well as not stated explicitly shape the rice seed
market structure in Indonesia. Based on field phenomena contained in the
province of East Java, interesting to examine the structure of the rice seed
market. Market structure is important to studied, because as the basis for
regulations
effective distribution
Development for Human Welfare 2016
163 arrangement so that the rice seed industry
efficiently. The purpose of the study is to identify the market structure variables are
specific and relevant to the commodity rice seeds, as well as analyzing the
structure of the market. METHOD
1. The Method to Determining of
Location
Location of the study districts examples to support the collection of
primary data. Determination of the location of research conducted by
multistage cluster sampling method, ie starting from the stage specifies the
district, sub-district to the village sample. First, the establishment of the district was
purposively based on the existence of rice seed producers, according to information
from the board of Himpunan Produsen Pedagang Benih East Java Province
HPPB East Java. Regency example is Malang representing the locations with
their business unit breeder large-scale private, Mojokerto representing the
locations with their business unit of seed paddy
from the
Department of
Agriculture, and Sumenep representing Madura
and has
a number
of manufacturers of the highest on the island
of Madura . Second, the determination of sample districts from each district sample,
which were determined purposively based on the considerations contained village
rice
seeds subsidy
recipients of
government, as well as the farmers are partners breeder of rice seed producers
according to various scale enterprises, large private and individual.
2. The Method to Determining of Respondents
