The marketing channels for fresh fruit bunches at farmers palm oil plantation

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 analys...

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Bibliographic Details
Published in:Innovative Marketing 2020-12, Vol.16 (4), p.139-144
Main Authors: Sarkum, Sumitro, Elizabeth Mustamu, Novilda, Juni Yanris, Gomal
Format: Article
Language:English
Subjects:
Distribution channels
Marketing
Vegetable oils
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Summary: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.
ISSN:1814-2427
1816-6326
DOI:10.21511/im.16(4).2020.12