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All Journal Best Journal of Administration and Management
Steygen Nalza Santoso
Institut Teknologi Sawit Indonesia
Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

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Marketing Margins, Distribution Efficiency, and Retail Price Gaps of MinyaKita Cooking Oil in Baturaja, Indonesia Steygen Nalza Santoso; Zulham Zulham; Tifany Zia Aznur; Muhammad Reza Aulia
Best Journal of Administration and Management Vol 5 No 1 (2026): Best Journal of Administration and Management
Publisher : International Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56403/bejam.v5i1.524

Abstract

Affordable cooking oil requires distribution arrangements that control costs without weakening consumer access. Evidence on how these objectives interact within regulated industrial food channels remains context dependent. This study examines MinyaKita distribution in Baturaja, Indonesia, using a descriptive comparison of interviews and observations involving two distributors, three sub-distributors, and thirty-two retailers. Marketing margins, recorded costs, profits, producer’s shares, and retail price gaps were examined, with separate arithmetic checks of respondent-level tabulations. The reported consumer price was 20,212 rupiah per liter in the channel involving retailers and 19,500 rupiah in the channel where a sub-distributor sold directly to consumers. Their respective marketing margins were 5,512 and 4,800 rupiah, while producer’s shares were 72.73% and 75.38%. Both prices exceeded the 15,700-rupiah retail ceiling. The shorter channel offered a relative price and recorded-cost advantage, but the longer channel provided more retail access points and a narrower range of profit-to-cost ratios. Appendix-based checks preserved the direction of the price comparison. The study contributes to a distinction between relative distribution performance and regulated affordability: reducing intermediation alone does not demonstrate price compliance, equitable returns, or superior consumer access.
Co-Authors Tifany Zia Aznur Zulham Zulham