Abstract

Rubber price received by smallholders in Indonesia is lower compared with other countries due to inefficien t marketing system. Therefore, it needs an effort to inc re ase in the supply chain performance. T he objective of the research was to analyze marketing system of natural rubber and the effect of supply chain management on marketing efficiency. The research was conducted at Tebo R egency of Jambi Province from December 2014 until February 2015 . Marketing system was analyzed using B/C ratio and value-added approach, whereas supply chain was carried out using a s upply c hain n etwork approach. The results showed that there were four patterns in the marketing channels of natural rubber. Pattern I (farmers – village traders - subdistrict traders - district traders - industries); Pattern II (farmers – village traders - district traders - industries); Pattern III (farmers –auction market - industries); and Pattern IV [farmers – Rubber Processing and Marketing Unit (RPMU) – industries] . The s upply chain management was only found in the Pattern IV, where there was an agreement between farmers and the RPMU to improve the quality of rubber for higher price. In addition, farmers also received advocation and training from the RPMU . Pattern IV exhibit ed improvement marketing efficiency as indicated by a B/C ratio at 1.29 and value added at 96.82%. The adoption of SCN framework was able to motivate farmers to produce a better quality of rubber that afforded a high er price. Therefore, the government is necessarily to recommend the addoption of t his pattern in increasing farmers’ income.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.