Comparison of efficiency marketing among black pepper with organic pepper in Lampung Province

• Main Authors: Zakaria, Wan Abbas, Indah, Lidya Sari Mas, Seta, Amanda Putra, Adisti, Shinta Tantri
• Format: Conference Proceeding
• Language: English
• Subjects: Collectors; Commodities; Distribution channels; Exports; Farmers; Marketing; Profit margins
• ISSN: 0094-243X; 1551-7616
• DOI: 10.1063/5.0211791

The emergence of organic farming practices on pepper commodities is a hope for improving the welfare of farmers. The price offered by Organic Black Pepper is higher when compared to ordinary black pepper. In terms of marketing, Organic Black Pepper has its own marketing channel, by using a partnership system. Therefore, it is very important to study whether the Organic Black Pepper commodity is able to provide added value for farmers with a different marketing system compared to ordinary black pepper. This research will try to examine the marketing efficiency between ordinary black pepper and organic black pepper in Lampung Province. The method used in this research is a survey method. The analytical method used is producer share, marketing margin, and profit margin ratio (RPM). The research was conducted in November 2020 in Way Kanan Regency, East Lampung Regency, and North Lampung Regency, which are the top three producers of Black Pepper and Organic Black Pepper in Lampung. The sampling technique used is the snowball technique. The results showed that there are 3 marketing channels for ordinary black pepper, namely a) Farmers-Village-level Collectors-Wholesale Traders-Exporters, b) Farmers-Village-level Collectors-Exporters, and c) Farmers-Wholesale Traders-Exporters. Meanwhile, Organic Black Pepper only has 1 marketing channel, namely through partner farmer groups. Based on the value of Producer’s share (PS), the most efficient marketing channel is the marketing channel of Organic Black Pepper. This is because, farmer groups are able to sell pepper directly to exporters without going through intermediaries. In addition, partner farmer groups get benefits in the form of empowerment from third parties and a profit margin of IDR 335.00 per kg in this marketing system. So that farmers are able to benefit both economic and non-economic from this marketing system. In addition, the RPM value shows that each marketing agency earns different profits, but exporters get the highest profit.