Abstract
The aim of this study is to determine the marketing channels for Fresh Fruit Bunches (FFB) of palm oil plantations of farmers in Labuhanbatu Regency, which are carried out by traders, causing price fluctuations. The research method was based on library research, field research and qualitative analysis of primary data collected through interviews with a number of farmers, collector traders, and palm oil mills in Labuhanbatu and surrounding areas. The results of this study showed the real price fluctuations in the FFB trade in Labuhanbatu Regency, while the marketing function of farmers and the supply chain showed the same thing, even though they had different expenses for that function. Whereas the share margin found in the findings of this study was 62% with a marketing efficiency level of 30%. The study also found that FFB marketing channels in Labuhanbatu District had eight channel levels, but this research only confirmed one level, namely the third marketing channel. Thus, this study suggests that follow-up research will explore the remaining seven channels with similar and different topics and issues.
Highlights
There are several Crude Palm Oil (CPO) producing countries, and one of the biggest is Indonesia
The study found that Fresh Fruit Bunches (FFB) marketing channels in Labuhanbatu District had eight channel levels, but this research only confirmed one level, namely the third marketing channel
Farmers stated that the prices of fertilizers and pes- kg, IDR 650/kg provides prices to micro traders ticides were not affordable. 96.3% Farmers who collect FFB farmers and IDR 678/kg if farmdid not know the oil palm association or organi- ers come directly to sell their FFB and for pricing zations, 94.4% stated they did not feel the benefits, information set by the government 86.7% did not Marketing location Bilah Barat Bilah Hilir Bilah Hulu
Summary
There are several Crude Palm Oil (CPO) producing countries, and one of the biggest is Indonesia. In Indonesia, there are several provinces that produce oil palm plantations, and one of them is North Sumatra Province, and in this, there are several CPO producing districts of oil palm plantations, one of which is Labuhanbatu Regency. Whereas the statement of the Fresh Fruit Bunches (FFB) and CPO purchase price, which is set per week by the government through the North Sumatra Plantation Office, only accommodates the CPO and FFB prices of palm oil produced by plasma farmers, while for independent farmers and companies are not set (Naibaho & N, 2019). This research was conducted to find out how much influence made the marketing channels of Fresh Fruit Bunches (FFB) on the selling price of FFB palm oil plantation at farmers in Labuhanbatu Regency.
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