Marketing Efficiency of Coffee-Based Agroforestry Based on Market Performance: A Case of Study in Air Kubang Village, Tanggamus

Abstract

The main sources of community income at Air Kubang village, Air Naningan sub-district, Tanggamus District is from the cultivation and marketing of robusta coffee (Coffea robusta) that is managed using an agroforestry system. Coffee-based agroforestry also contributed a positive ecological impact on the surrounding communities such as the preservation of springs that are utilized by the community to meet household needs. A study on coffee marketing is urgently needed to determine the efficient marketing channels based on the market performance of each channel. The purpose of this research was to identify marketing channels of robusta coffee and determine the performance of each marketing channel. Data were collected in December 2018 in Air Kubang Village, Air Naningan District, Tanggamus Regency. The data were obtained through interviews with respondents such as farmers and marketing institutions involved in the marketing of robusta coffee. Market performances were analyzed through the calculation of marketing margin, profit margin, profit margin ratio, share, and marketing efficiency. The study identified three marketing channels as follows: (1) farmers – collector traders – wholesalers – retailers, (2) farmers – cooperatives – retailers, and (3) farmers – cooperatives. Analysis of marketing efficiency (EP) showed that the three marketing channels were efficient with the EP values <1. However overall results showed that the marketing of coffee for the three marketing channels was not yet efficient, showing high marketing and profit margins, uneven distribution of profit margin ratio, and low share received by farmers.Keywords: agroforestry, marketing efficiency, marketing margin, robusta coffee