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Linking Mango Farmers to Dynamic Market Through Transparent Margin Partnership Model

Linking Mango Farmers to Dynamic Market Through Transparent Margin Partnership Model
Ronnie S. Natawidjaja, Yosini Deliana, Wayan Rusastra, Tomy Perdana, Togar A. Napitupulu, Hanny Sulistyoningrum, Yovie M. Rahayu
Universitas Padjadjaran, In Digal, Larry., F. Proctor, and B. Vorley (Eds), Changing Agrifood Markets in Southeast Asia: Impacts on Small-Scale Producers. SEAMEO SEARCA. ISBN 978-971-560-560-145-0.
Bahasa Inggris
Universitas Padjadjaran, In Digal, Larry., F. Proctor, and B. Vorley (Eds), Changing Agrifood Markets in Southeast Asia: Impacts on Small-Scale Producers. SEAMEO SEARCA. ISBN 978-971-560-560-145-0.

Indonesia ranks fourth among the mango-producing countries, after India, China, and Thailand. One of the important mango production zones in Indonesia is Pemalang, Central Java. In this area, mango can be harvested during the off-season, from May to August, while mango in other producing areas is generally harvested from October to January. The specific harvesting period should be a considerable advantage to farmers in terms of bargaining position with traders in determining mango’s selling price. However, apparently local collectors (tengkulak) and wholesalers (bandar) are still those who benefit the most from the off-season mango. Since farmers are generally bound by a loan received from a trader in Pemalang, farmers let their mango farm to a trader to decide on selling the harvest. Therefore, farmers do not know the accurate volume of their mango production. This kind of exchange system makes the farmers’ bargaining position vulnerable, so that they obtain relatively lower prices compared to the real market price. This is due to unbalanced information, traders’ monopolistic power, and farmers’ weak financial condition. This exchange system also dampens farmers’ motivation to improve productivity, as well as quality, of mango farming.

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