Efficiency of the Nutmeg Marketing System in Kedondong District Pesawaran Regency

Abstract

Nutmeg marketing system is a process of distributing nutmeg seeds from producers to consumers. The bargaining position of nutmeg farmers in Kedondong District is weak. The weak bargaining position of farmers is due to the dominance of traders who are able to control farmers in terms of the price of nutmeg. The weak bargaining position of the farmers will affect the efficiency level of the nutmeg marketing system. This study aims to identify the marketing channels and actors involved in the marketing of the nutmegs, to analyze the marketing margin and efficiency level of the nutmeg marketing system in Kedondong District, Pesawaran Regency. The research data was taken from primary data in the form of interviews and giving questionnaires. The results of this study indicate that the institutions involved in the nutmeg marketing system are village collectors and subdistrict collectors. There are two channels formed in the nutmeg marketing system, namely a two-level chanel marketing (Farmer-Village Collector Trader–Sub-District Collector Trader-Consumers) and one-level channel marketing (Farmer-Sub-District Collector Trader-Consumers). The efficiency of marketing of nutmeg was achieved in one-level channel marketing  because it had the smallest margin of IDR29,590, had the largest profit to cost ratio of 18.69 and had the largest farmer's share of 42.86%. However, nutmeg farmers still choose the one-level channel marketing  because there are factors that influence, namely local wisdom and social capital.