Marketing Margin, Farmer’s Share, and Operational Feasibility of a Bird’s Eye Chili Channel in Mojokerto

Margin, Farmer’s Share, dan Kelayakan Operasional Saluran Pemasaran Cabai Rawit di Mojokerto

Abstract

Bird's eye chili is highly perishable, making channel structure and intermediary performance crucial for maintaining distribution and value sharing among actors. This study analyzes the marketing channel of UD Sumber Tani Abadi, Mojokerto, by integrating marketing margin, farmer's share, and short-run operational feasibility. A descriptive quantitative approach was employed through a census of 90 partner farmers, one marketing intermediary, and one retailer, involving 92 participants in the observed channel. Primary data were obtained through interviews, questionnaires, observation, and business records. The identified channel was farmers → marketing intermediary → retailer → final consumers. The intermediary margin was Rp10,000/kg, farmer's share reached 73.33%, and the short-run operational R/C ratio was 1.14. These indicators demonstrate positive internal channel performance; however, they do not establish that this channel is more efficient than alternative channels, as no comparative channel was observed. Cash payment, a relatively short channel, and repeated trading relationships supported continuity, whereas price volatility and farmer dependence on a single buyer remained important risks. The findings highlight the need for market diversification, more transparent price arrangements, stronger farmer organization, and longer-period monitoring of prices and operating costs.