THE IMPROVEMENT OF THE QUALITY OF RAW RUBBER MATERIAL AND FARMERS’ SHARE THROUGH THE ORGANIZED MARKETING SYSTEM (CASE STUDY IN SOUTH SUMATRA PROVINCE, INDONESIA)

Abstract

Currently, agribusiness of rubber is experiencing unfavorable condition. This is due to the declining of rubber price in the last few years . One effort that has been conducted by Indonesian government to cope with the low rubber price is improv ing the quality and marketing chain of rubber through the organized marketing system. The organized marketing system is a marketing system where the smallholders sold their rubber by group, namely Processing and Marketing unit of Raw Rubber Material . South Sumatra as one of the biggest producer province in Indonesia has established this organised marketing system in some regions. During the period of 2013-2017,there are 126 Processing and Marketing unit s of Raw Rubber Material in South Sumatra. T his marketing system has changed the quality of raw rubber produced by smallholders and increase the farmers’ share as well. Keywords: organized marketing system, processing and marketing unit of raw rubber material, quality of raw rubber material, farmers’ share