Marketing Channel Analysis of Oil Palm Fresh Fruit Bunches in Lubuk Barumun District, Padang Lawas Regency

Abstract

The purpose of the research is to find out marketing channel analysis of oil palm fresh fruit bunches in Lubuk Barumun District, Padang Lawas Regency. The research was conducted in Lubuk Barumun District in Padang Lawas Regency, North Sumatra Province with the consideration that Padang Lawas Regency has potential in developing oil palm plantation areas. The research was carried out from January to February 2021. The sample collection of producer farmers was carried out by purposive sampling with the sample criteria being independent oil palm farmers. From the population of oil palm farmers in Padang Lawas Regency as many as 297 people, a sample of 10 percent was taken, namely 30 farmer respondents. Quantitative analysis is used to determine the Hirschman Herfindahl index on market structure, market behavior based on the price relationship between two markets at the same level and the magnitude of market performance based on marketing margin analysis, profit margin ratio, farmer's share, cost share, and profit share. The results showed that, the number of oil palm farmers is large while the number of sellers or intermediaries is only a few so that the marketing system for fresh fruit bunches of oil palm tends to be imperfect competition because there are many sellers but few buyers (oligopsony). Analysis of the Hirschman Herfindahl index, it is known that the market structure of oil palm fresh fruit bunches in Lubuk Barumun District, Padang Lawas Regency tends to lead to an imperfect competition market (oligopsony) which causes the bargaining position of oil palm fresh fruit bunches farmers to be in poor condition weak, namely as a price taker. The efficiency of an already efficient marketing channel is the one that shows the smallest value of marketing efficiency, namely in channel III (Ep < 5% efficient). Marketing channels I and II have not been efficient (Ep > 5% inefficient). Keywords: Marketing Channel, Oil Palm, Fresh Fruit Bunches .