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Marketing Channel Structures and Value-Added Distribution in the Rice Supply Chain: A Case Study from Sumbersari District Tia Sofiani Napitupulu; Sumarlina Sumarlina; Rizal Perlambang CNAWP; Luluk Cahyo Wiyono
Futures in Agro-Food Economics and Logistics Analytics Journal Vol. 1 No. 2 (2025): June
Publisher : PT Litera Integra Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.67580/fafela.v1i2.11

Abstract

This study aimed to identify the marketing channels and the role of marketing institutions in the rice marketing system in Sumbersari District, Jember Regency. A qualitative descriptive approach was employed, involving in-depth interviews with rice farmers and related market actors. The results revealed three marketing channel patterns: (1) farmers → middlemen → wholesalers → retailers → consumers, (2) farmers → wholesalers → retailers → consumers, and (3) farmers → retailers → consumers. Each marketing institution performed distinct functions, including production, processing, distribution, risk management, financing, and market information. The longest channel involved four institutions, while the shortest consisted of only two. The shortest channel enabled farmers to capture more added value by undertaking processing and packaging activities themselves. However, this channel was less common due to the higher risks and capital requirements. These findings highlight the importance of strengthening farmers' capacity and access to market infrastructure to improve their bargaining position and share of value in the rice marketing system