Marketing in agricultural activities is considered to play a dual role. The first role is a price shift between producers and consumers. The second role is the physical transmission from the point of production (farmer or producer) to the place of purchase (consumer). However, to play both roles, farmers face various obstacles to market Agriculture Online Market, especially for small-scale farmers. The main problems faced in the marketing of agricultural products include, among others:
1. Production sustainability
One of the causes of the various problems of marketing of agricultural products related to the nature and characteristics of agricultural products, namely: First , the small volume of production because it is cultivated with small scale farming . In general, farmers conduct farming activities with a narrow land area, ie less than 0.5 ha. In addition, the technology used is still simple and has not been managed intensively, so the production is not optimal; Second, production is seasonal so it is only available at certain times. These conditions resulted in the production season produced so abundant that the selling price of these products tend to decline. Conversely, when the season is not available, the available product is limited and the selling price soars, so the collecting traders must provide substantial capital to purchase the product. Even at certain times the product is not available so it needs to be imported from other regions; Third, location of scattered farming efforts making it difficult in the process of collecting production. This is due to the location of the farming business between one farmer and another farmer far apart and they always try to find the location of planting in accordance with the soil and climate conditions suitable for the cultivated crop. This condition makes it difficult for collecting traders in terms of collection and transportation, so it takes a long time to collect the products produced by farmers. Such conditions will increase marketing costs; Fourth, the nature of agricultural products that are easily damaged, heavy and require many places. This causes certain traders who can not afford to sell agricultural products, because it is economically more profitable to sell industrial products (agro-industry).
2. Inadequate market
The inadequate market is related to the way pricing and payments. There are three ways to fix the selling price of agricultural products, namely: in accordance with prevailing prices; bargaining; and wholesale. Marketing at current prices depends on supply and demand that follow market mechanisms. Price pricing through bargaining is more familial, if an agreement is reached between the seller and the buyer then the transaction is executed. The practice of marketing by way of wholesale occurs due to the financial condition of farmers who are still weak. This way occurs through intermediary traders. This intermediary trader buys the product by giving a down payment to the farmer. This is done as a guarantee against the product that the trader wants,
3. The length of marketing channels
The length of the marketing channel leads to a high cost (high marketing margin) and a portion issued as merchant profits. This tends to minimize the share that farmers receive and increase the cost paid by consumers. The short length of marketing channels is marked by the number of intermediary traders to go from farmers to final consumers.
4. Low bargaining power
The ability of farmers in the supply of products produced is still limited due to limited capital owned, so there is a tendency of products produced are sold at a low price. Based on these circumstances, then the big gain in general is the merchant. The limited capital is related to: First , the mental attitude of farmers who like to get loans to middlemen and intermediary traders. This leads to a high degree of farmer dependency on intermediary traders, so that farmers are always in a weak position; Second, credit facilities provided by the government can not be utilized optimally. There are several factors that cause it, among others, do not know about the loan procedure, the location of credit institutions that are far from the dwelling, unable to meet the requirements that have been set. In addition it is concerned about risks and uncertainties during the production process so that in time it is unable to restore credit. This shows the knowledge and understanding of farmers about the problem of credit is still limited, and the level of confidence of farmers is still low.
5. Price fluctuation
Fluctuating agricultural production prices are subject to changes in demand and supply. Rise and fall of prices can occur in the short term that is per month, per week even per day or can also occur in the long term. For rapidly degraded agricultural commodities such as vegetables and fruits, the effects of changing market demand are sometimes so striking that the prevailing prices change rapidly. It can be observed different market price changes in the morning, afternoon and evening. At the time of the season of abundant products low prices, otherwise at the time of the season did not rise drastically. This situation makes it difficult for farmers to undertake production planning, as well as traders difficult to estimate demand.
6. Unavailability of market information
Market information is a factor that determines what is produced, where, why, how and for whom the product is sold at its best. Therefore, appropriate market information can reduce business risk so that traders can operate with low marketing margins and provide benefits for the traders themselves, producers and consumers. Limitations of market information related to the location of remote farming, knowledge and ability to analyze the data is still lacking and so forth. In addition, with the formal education of the community, especially farmers, is still very low, the ability to digest or analyze information sources is very limited. These conditions led to farming done without going through careful planning.
7. Lack of clarity of marketing network
Manufacturers and / or traders from regions find it difficult to penetrate existing marketing networks in other regions because the parties involved in such marketing networks and where the activities are taking place are unknown. In addition, it is not known also the rules that apply in the system. This causes the resulting production to experience barriers in terms of network marketing expansion. In general an existing marketing network between producers and traders has an agreement that forms a strong bond. The agreement is an unwritten secret that is difficult to know by others.
8. Low quality of production
The low quality of products produced because the handling is not yet intensive. This quality problem arises because the handling of activities ranging from prapanen to harvest that has not done well. The resulting product quality issue is also determined on postharvest activities, such as through standardization and grading . Standardization can facilitate the loading process and save space. Gradingcan eliminate the need for inspection, ease price comparison, reduce fraud practices, and accelerate the process of buying and selling. Thus both activities can protect the goods from damage, in addition to reducing freight costs and storage costs. However, both activities are difficult to do for the production of rapidly damaged agricultural products. Possible possibilities include product quality may change after being at the destination, shrinking and / or damaged by transportation, handling and storage. This leads to products that have been previously classified based on a certain quality in accordance with the demand may change so that it can be rejected or purchased at a cheaper price.
9. Low quality of human resources
The marketing problem is not less important is the low quality of human resources, especially in rural areas. The low quality of human resources is also not supported by adequate training facilities, so the handling of products ranging from prapanen to pascapanen and marketing is not done well. In addition, farmers' guidance has been largely on cultivation practices and has not led to marketing practices. This causes the farmers' knowledge about marketing to remain a product, so the marketing subsystem becomes the weakest and needs to be built in the agribusiness system (Syahza A, 2002a). Similar conditions also occur in urban areas, ie the ability of intermediary traders is also limited. This can be observed from the ability to negotiate with trade partners and business partners with modern standards (supermarkets, supermarkets, restaurants, hotels) is still scarce. Whereas the modern market is a very good agricultural product opportunity because it provides high added value.
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