The impact of consignment-based marketing through middlemen on the economic sustainability of farmers in Pawenang Village, Nagrak Subdistrict, Sukabumi Regency

Tri Sanatha Wahyu Akbar (), Riani Winarni (), Galih Raspati (), Mulfi Sandi Yuda () and Bayu Prastiyo Nurdiana
Additional contact information
Tri Sanatha Wahyu Akbar: Universitas Sains Indonesia
Riani Winarni: Universitas Sains Indonesia
Galih Raspati: Universitas Sains Indonesia
Mulfi Sandi Yuda: University of Sains Indonesia
Bayu Prastiyo Nurdiana: Universitas Sains Indonesia

Priviet Social Sciences Journal, 2025, vol. 5, issue 5, 122-138

Abstract: The consignment-based marketing system through middlemen (known locally as tengkulak ) has long been practiced by farmers in Nagrak District, particularly in Pawenang Village. This system offers certain advantages, such as lower costs, operational simplicity, no need for technological skills, and delegation of distribution responsibilities to middlemen. However, the dominance of middlemen in the agricultural marketing chain leads to a high level of farmer dependency. Middlemen control nearly the entire market, leaving farmers with little to no bargaining power when they sell the middlemen take 10% of the final selling price. Limited market access also prevents farmers from tracking price fluctuations, thus making them vulnerable to price manipulation. Moreover, farmers are charged with the distribution costs. This situation negatively affects farmers’ welfare, with most living under economic hardship, even though agriculture is their primary source of income. This study aims to analyze the impact of the consignment marketing system through middlemen on the economic sustainability of farmers in Pawenang Village. The findings are expected to provide insights into how this system affects farmer independence and offer alternative marketing solutions to reduce dependence on middlemen, thereby improving the competitiveness and sustainability of agricultural enterprises.

Keywords: Consignment marketing system; middlemen; economic sustainability of farmers; Pawenang village; alternative marketing solutions (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journal.privietlab.org/download.php?id=9890 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prv:pssjpv:511

Ordering information: This journal article can be ordered from
https://journal.priv ... SSJ/article/view/511

DOI: 10.55942/pssj.v5i5.511

Access Statistics for this article

More articles in Priviet Social Sciences Journal from Privietlab Research Center
Bibliographic data for series maintained by Mochammad Fahlevi ().