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ANALYSIS OF CHANNELS AND MARKETING EFFICIENCY OF LOCAL FISHERIES IN MERAUKE

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International Journal of Mechanical Engineering and Technology (IJMET)
Volume 10, Issue 03, March 2019, pp. 766-772. Article ID: IJMET_10_03_080
Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=3
ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication
Scopus Indexed
ANALYSIS OF CHANNELS AND MARKETING
EFFICIENCY OF LOCAL FISHERIES IN
MERAUKE
Marthen A.I. Nahumury and Fenty Manuhuttu
Department of Development Economics, Faculty of Economics and Business, Universitas
Musamus, Merauke, Indonesia
ABSTRACT
Marine fisheries is one of the dominant agricultural sub-sectors in Malind
District, Merauke Regency. An activity related to fisheries has parties who play a role
in both the production process and its distribution. In an effort to increase income at
the level of local fishermen in the Malind District of Merauke Regency, a study of
channel analysis and marketing efficiency for the catch of local fishermen is needed.
The objectives to be achieved from this research are Analyzing channels and the
efficiency of marketing the catch of marine products of local fishermen in Malind
District, Merauke Regency. The method used in this study is Survey. The marketing
output data for local nelyan sea catches in the Malind District of Merauke Regency in
this study are very descriptive by using the Participatoriy Rut Appraisal (PRA) method
with the Snow Ball sampling approach in which local fishermen are the starting point.
The sample in this study were 30 fishermen, 3 collectors, 3 wholesalers, 3 retailers
through the snowball sampling technique. Data were analyzed descriptively against
distribution patterns and margins of capture fish marketing. The results of the study
are in the Malind District there are three distribution patterns, namely first; fishermen
to collectors to wholesalers to retailers to consumers; second, the fishermen to the
traders to the retailers to consumers; third, fishermen to large traders to retailers to
consumers. The lowest marketing margin occurs in channel III, which is Rp.3,120 and
Farmer value 'highest share of 88.90%, effective marketing channel efficiency occurs
on channel III with farmer value "highest share compared to marketing channels I and
II.
Keywords: Sea Catch, Channels, Margin, Marketing Efficiency
Cite this Article Marthen A.I. Nahumury and Fenty Manuhuttu, Analysis of Channels
and Marketing Efficiency of Local Fisheries in Merauke, International Journal of
Mechanical Engineering and Technology, 10(3), 2019, pp. 766-772.
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Analysis of Channels and Marketing Efficiency of Local Fisheries in Merauke
1. INTRODUCTION
The Marine and Fisheries Sector is one of the potential sectors for the source of economic
growth and is a source of livelihood for many people and hopes for the future of the nation.
This is because many people are involved in the marine and fisheries business. Particularly
the Merauke Regency region which has large marine and fisheries potential, the utilization
and management of fisheries resources must be implemented with an integrated fisheries
business system starting from production, processing to marketing.
The vast territory of Merauke Regency and the very long distance between one district
and another district with inadequate road infrastructure is a problem for local fishermen to
distribute / market their catches. Through improved marketing techniques, good can increase
the income of local fishermen by considering the marketing system according to
recommendations and needs in handling since the fish was captured, then marketed to be
accepted by consumers and can minimize all costs of the marketing channel so as to create
added value for fishermen local
Marketing / distribution chain is a human activity directed at efforts to satisfy their desires
or needs through an exchange process, which includes a series of activities aimed at moving
production from the producer sector to the consumer sector. The fisheries marketing channel
is a marketing institution that is passed by goods and services ranging from fishermen to
consumers (Rosdiana, Rosyida, Alimudin, 2011: 5). The marketing system for catching local
fishery marine products greatly affects the income / value of farmer sahre of local fishermen
in Merauke regency, whereas a low marketing value will cause high costs and final sales
prices, which in turn will affect the overall marketing system.
The consumptive catch of marine products of local fishermen in Merauke is increasing,
which is based on the data obtained that fish production for local consumption comes from
marine fisheries 3,457 tons (92.88%), while the rest comes from inland fisheries. This proves
that consumption patterns undergo changes in line with increasing income, education and easy
access to information. To create a good and conducive marketing performance of local
fishermen's catches, a distribution function is needed, from the producer region to the
consumer area, thus marketing is one of the important factors in influencing the price level of
each market actor.
Fishing business activities carried out by local coastal fishermen in general in the Malind
District in three villages namely the Kumbe village, Onggari village and Domande village
were not managed with a good management system. The results of business and household
needs for daily needs are often put together, so that the net income from fishing business
activities is not clearly known. This makes fishermen do not know clearly how much business
income they generate from fishing in the sea. Therefore, the marketing system for marine
catches for local fishermen on the coast must require a better calculation of business income
in order to determine the level of income and efficiency of fishing activities carried out by
fishermen so that they are able to run effectively in accordance with the dynamics of market
changes.
2. METHODOLOGY
This research will be carried out in 2017 in Merauke Regency, Papua Province. Retrieval of
respondents' data was spread in three local villages, namely Village Kumbe, Village Onggari
and Village Domande, Malind District, Merauke Regency.
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Marthen A.I. Nahumury and Fenty Manuhuttu
The research method used is the research survey (Mangkoedihardjo and April, 2012;
Samudro & Mangkoedihardjo, 2012). The research data was collected using questionnaires /
questionnaires. Data from the sea catching system by fishermen in Merauke Regency in this
study is descriptive using Participatory Rural Appraisal (PRA) method with the approach of
Snow Ball Sampling where fishermen are the Starting Points. Primary data was collected
from 10% of the total population so that the number of samples was obtained by 30
fishermen, 3 collectors, 3 wholesalers and 3 retailers. Secondary data is collected from the
Marine Fisheries Service, and other related agencies / agencies. The research data will be
analyzed statistically according to the purpose of the study to be able to answer the existing
research problems. Study market linkages and study in detail the components of costs and
margins, farmer shares, along the sea catch distribution chain which will affect the level of
income efficiency of local fishermen.
3. RESULTS AND DISCUSSION
3.1. Pattern of fish marketing channels
The pattern of distribution of catches of local fishermen marine products based on
respondents' data for each channel shows how the fish distribution channels in these three
Malind district villages differ from the distribution channels of marine fish catches from the
selection of fish / distribution marketing channels based on several methods including
transportation use, selling prices , ease of sale. The results of the observation show that the
fish marketing channels carried out by local coastal fishermen in three villages have three (3)
marketing channels used, namely:
1. Marketing channel I :
Fishermen-Collector Traders-Wholesalers-ConsumerRetailers
2. Marketing channel II :
Fishermen - Collector Traders - Consumer Retailers
3. Marketing channel III :
Big-scale Fishermen-Consumer-Retailers
3.2. Analysis of channels and marketing margins
In this study the marketing margin is calculated as the difference between the selling price of
capture fish at the fishermen level and the fish selling price at the retail level. This analytical
procedure is done by selecting and following the marketing channel of a specific commodity,
comparing prices at different levels of marketing, and collecting gross sales and purchase data
for each type of trader.
The following is the result of marketing margin analysis which consists of costs needed by
marketing agents to carry out marketing functions and profits received by marketing actors in
each trade marketing chain of catches of local fishermen in the Malind District of Merauke
Regency, in table 1 below as follows.
Tabel 1. Local Fishermen's Catching Channel and Marketing Margin
Uraian
Selling price
Purchase price
Marketing margin
Marketing costs
in the Malind District
channel I
channel II
Local fishermen
24.000,00
24.000,00
Collector
24.000,00
24.000,00
1.667,00
2.789,00
1.200,00
1.400,00
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channel III
24.000,00
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Analysis of Channels and Marketing Efficiency of Local Fisheries in Merauke
Profit margin
Selling price
Purchase price
Marketing margin
Marketing costs
Profit margin
Selling price
Purchase price
Marketing margin
Marketing costs
Profit margin
Selling price
467,00
25.667,00
Wholesalers
25.667,00
1.111,00
675,00
436,00
26.778,00
Retailers
26.778,00
1.575,00
1.380,00
195,00
28.353,00
1.389,00
26.789,00
25.000,00
1.778,00
1.300,00
478,00
26.778,00
26.789,00
2.211,00
1.395,00
816,00
29.000,00
26.778,00
1.342,00
1.210,00
132,00
28.120,00
Source: Primary data processed (2017)
Based on Table 1. above, it can be explained that out of the three distribution channels
there is one distribution channel or the one most often used by local fishermen (when selling
catches of fresh fish).
Analysis of each of the marketing distribution channels of marine fish catches in three
villages, as well as marketing margins in related institutions can be explained in the following
discussion:
Marketing channel I: This channel consists of: Fishermen - Collector Traders Wholesalers - Retailers - Consumers.
In this channel the fishermen sell their catch directly to the collector at a price of
Rp.24,000 - per kg, then the collector sells to large traders of Rp.25,667, - the main financing
(marketing cost) for the collector includes the cost of preserving fish, transportation costs , the
cost of loading and unloading and retribution is Rp. 1,200, - per kilogram of fresh fish and the
marketing margin obtained from traders is Rp. 1,667 / kg of fresh fish. The selling price of
fish from large traders to retailers is Rp.26,778, - the main financing for large traders includes
fish preservation costs, transportation costs, loading and unloading costs of Rp. 675, - per
kilogram of fresh fish and the marketing margin obtained from traders is Rp.1,110 / kg of
fresh fish.
Marketing channel II: This channel consists of: Fishermen - Collectors - Retailers Consumers.
In this channel the fishermen sell their catch directly to the collector at a price of
Rp.24,000 - per kg, then the collector sells directly to retailers in the amount of Rp.26,789, the main financing for collector traders includes fish preservation costs, transportation costs,
unloading costs load, and retribution is Rp. 1,400 per kilogram of fresh fish and marketing
margins obtained from traders amounting to Rp. 2,789 / kg of fresh fish. Furthermore, the
selling price of retailers to consumers is Rp.29,000, - the main financing of retailers includes
costs of preserving fish, transportation costs, costs loading and unloading, and retribution is
Rp. 1,395, - per kilogram of fresh fish and marketing margins obtained from traders
amounting to Rp.2,211 / kg of fresh fish.
Marketing channel III: This channel consists of; Fishermen - big traders - retailers - end
consumers
In this channel, fishermen sell their catch directly to large traders, because the fishermen's
catch is very little, unlike the catch, so that part of the catch is sold to large traders who
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Marthen A.I. Nahumury and Fenty Manuhuttu
intentionally come directly to the fishermen's house with prices ranging from Rp. 25,000 / kg .
Furthermore, wholesalers sell to retailers in the amount of Rp.26,778 / kg, the main financing
for large traders includes fish preservation costs, transportation costs, loading and unloading
costs, and levies of Rp. 1,300 per kilogram of fresh fish, the marketing margin obtained from
traders is Rp. 1,778 / kg of fresh fish. Furthermore, the selling price of retailers to consumers
is Rp. 28,120 / kg of fresh fish, the main financing for retailers includes the cost of preserving
fish. , transportation costs, loading and unloading costs, and fees are Rp. 1,210, - per kilogram
of fresh fish and the marketing margin obtained from traders is Rp. 1,342 / kg of fresh fish.
3.3. Farmer’s share analysis and level of marketing efficiency
3.3.1. Analisis Farmer’s Share
The Farmer's share is the difference between prices at the retail level for food products and
marketing margins. To find out how much the average price at the fisherman level, prices at
the consumer level, marketing margins and farmer's share in each marketing channel in the
Malind District, are explained in table 2 as follows.
Tabel 2. Average Price at Fisherman Level, Price at Consumer Level, Marketing Margin and
Farmer’s Share Every Marketing Channel in Rp.
channel
Prices at the
fisherman level
channel I
channel II
channel III
24.000,00
24.000,00
25.000,00
Price at the
Consumer
level
28.353,00
29.000,00
28.120,00
Marketing
Margin
Farmer’s
Share
4.353,00
5.000,00
3.120,00
84,65
82,76
88,90
Source: Primary data processed (2017)
Based on table 2. above, it can be informed that on the third channel, the marketing of
catches of local fishermen has the lowest marketing margin and the highest portion received
by fishermen (farmer’s share) is Rp. 3,120.00 and 88.90%. With the low marketing margin
and high farmer's share, the price difference between fishermen and end consumers is also
low and the higher the percentage of prices received by fishermen from the consumer's
purchase price. So that marketing channel III is the most economically efficient marketing
channel among other marketing channels.
Marketing channel II of the local fishermen's catch is the most inefficient marketing
channel among existing marketing channels. It can be seen in the table above that the biggest
marketing channel marketing margin II is Rp. 5,000, while the smallest farmer share among
the other channels is 82.76%. In the marketing channel II, the number of intermediaries is
equal to channel III, namely two intermediaries, but in this channel the marketing costs are
high, this is due to the high value of marketing distribution costs that occur, namely the high
cost of transportation. Thus it cannot be used as an efficient measure of a marketing channel.
Marketing channel I is a marketing channel that is widely used by fishermen, but this
marketing channel is less efficient because of the length of the channel and the marketing
margin of Rp. 4,353 and farmer's share of 84.65%, only slightly above the marketing margin
and farmer's marketing channel III.
3.3.2. Marketing efficiency
To find out the efficiency of economically marketing fresh sea fish is to look at the marketing
margin and the portion received by fishermen (Farmer’s Share) in each existing marketing
channel.
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Analysis of Channels and Marketing Efficiency of Local Fisheries in Merauke
From the results of the analysis showing that the marketing channel III captured by local
fishermen is the marketing channel with the highest farmer share, it can be concluded that the
marketing channel III is the most efficient marketing channel among other marketing
channels. By following the channel pattern of efficiency, it will directly increase the income
of local coastal fishing households in the Malind District of Merauke Regency.
4. CONCLUSION
The results of the study concluded that there were 3 (three) marketing channels for marine
products in the Malind District of Merauke Regency as follows:
1) Marketing Channels I: Fishermen - Collector Traders - Wholesalers - Retailers Consumers.
2) Marketing Channels II: Fishermen - Collectors - Retailers - Consumers.
3) Marketing Channels III: Fishermen - wholesalers - retailers - end consumers
The results of the analysis of the marketing channels formed indicate that at marketing
channel I the marketing margin value is Rp. 4,353, - and the farmer's share value is 84.65%,
for marketing channel II the marketing margin value is Rp. 5,000, and the farmer's share value
is 82.76. %. and on the marketing channel III the value of the marketing margin is Rp.
3,120.00, - and the farmer's share value is 88.90%. While the efficiency of the most effective
marketing channel is the marketing channel III.
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