Marketing Channel Choice of Cocoa Farmers in Madiun Regency, East Java, Indonesia

Amzul Rifin, Suprehatin, Rita Nurmalina Suryana and Indra Dilana Akbar

No 212290, 2015 Conference, August 9-14, 2015, Milan, Italy from International Association of Agricultural Economists

Abstract: The cocoa value chain developments in Indonesia are still promising and challenging as there are continuing emerging market opportunities and grown largely by smallholder farmers. However, there is limited attention on cocoa value chain in term of smallholder farmers who potentially to be promoted with respect to their marketing channel choice. The objective of this study is to understand the types of beans preferred and the factors of buyers chosen by farmers. This study shows that farmers still prefer unfermented beans rather than fermented beans. Using multinomial logit analysis, the results indicate that age and farming experience influenced farmers in selling to sub-regency and regency traders compare to village traders. Meanwhile, number of trees and price is affecting the farmers to sell to regency level traders to village level traders. Understanding what farmers’ preferences when they sell cocoa beans and why farmers choose certain selling channels help to design a better policy to improve farmers’ livelihood and cocoa value chain development.

Keywords: Crop Production/Industries; International Development; Marketing (search for similar items in EconPapers)
Pages: 16
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-pr~, nep-mkt and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae15:212290

DOI: 10.22004/ag.econ.212290

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