Types, Materials and Methods

230 Institutions and Marketing Margin Channel 1 Channel 2 Channel 3 2. Middlemaen a. Selling Price Rpkg 16200 b. BC Ratio 2.64 3. Villlage Traders a. Selling Price Rpkg 16649 16649 b. BC Ratio 0.62 1.34 4. Wholesalers a. Selling Price Rpkg 18800 18800 18800 b. BC Ratio 2.32 2.32 3.33 5. Exporters a. Selling Price Rpkg 21300 21300 21300 Referring to the ratio of the pricerevenue to the cost or the ratio of benefit to the cost occured in each marketing institutions, marketing coffee has not run efficiently Table 1. Farmer share is relatively small Farmer share received by farmers in Vietnam, approximately 90 and the benefit-cost ratio of each marketing institution is unequal distributed. Farmer share is relatively small because the market structure is more oligopsony, farmer groups have not been functioning well and the quality of the coffee is relatively low. 3.1.2. Efficiency of coffee farming Farm efficiency is indicated by the value of the revenue-cost ratio or benefit- cost ratio, if the value of the revenue-cost ratio is greater than one or the benefit-cost ratio is greater than zero then the farm is profitable or efficient. Table 2 shows that coffee farming in all sizes either small, medium or broad is profitable or efficient. In general, the level of Coffee farming efficiency is low when it is compared to the benefit-cost ratio of coffee in the other countries. This is mainly due to the relatively low productivity which is generally less than 2 tons per hectare. It appears that for the medium farmers, their farming have the highest benefit-cost ratio which means the most efficient farming. This is because that farming also have the largest productivity, about 1.6 tons per hectare and the cost is relatively small Table 2. Analysis of coffee farming efficiency according to the scale farming No. Kategori Lahan Revenue Cost Benefit RC BC 1. Small 26,616,667 11,343,945 15,272,722 2.35 1.35 2. Medium 27,268,617 10,889,658 16,378,959 2.50 1.50 3. Large 21,220,344 9,668,075 11,552,269 2.19 1.19