Supply Chain of Vegetable Commodities in Boyolali, Central Java

Abstract

Vegetables are an important commodity for a country. Vegetable prices contribute to the inflation rate in some regions of Indonesia. Inflation and deflation are inseparable from the type of food and vegetable groups because the majority of the population have jobs as vegetable farmers. SeloBoyolali is a vegetable producing area, but currently it can not meet the needs of its own region. Supply of vegetables began to decrease due to pests and vegetable turnover into tobacco. If the delivery of vegetables is hampered there will be a scarcity of vegetables that result in price increases. The length of the distribution channel has a negative impact, namely the price of commodities set by the middlemen or traders who distribute vegetables from the producers. So sometimes local farmers do not have bargaining power on the price determination of vegetables. This study aims to analyze the pattern of price formation and vegetable distribution in Boyolali. The analytical framework used in this research is supply chain management framework. The method used in this research is quantitative and qualitative. Respondents from this study were 101 people. Farmers in the slopes of Mount Merapi and Merbabu such as the villages of Selo, Cepogo, Ampel, and Musuk. These villages became the basis of vegetable production sufficient for Boyolali area and became the main supplier of vegetables in Soloraya and Yogyakarta. Modern channels are traders who channel the modern market such as supermarkets, supermarkets and other modern shops. In this channel, only goods that have the best quality and the price can be 2-5 times the price in the traditional market. Traditional channels are traders who are in the traditional market, in this channel the incoming goods are not limited and all kinds of goods can enter with all the existing quality from best to worst mixed here. However, the prices that apply here are also not as high as the modern market. Mixed channels are widely used by middlemen or farmers. Here the goods that have good quality are separated and then sold to the modern market in hopes of getting more profit. While the goods with the second quality go to the traditional distribution channels are cheaper. At this level the price of vegetables is strongly influenced by the quality of vegetables, the amount of vegetable availability and the amount of vegetable demand itself.