Author:
Muhammad Ilham Riyadh
Affiliation:
Faculty of Agriculture, Program Study of Agribusiness, Islamic University of North Sumatera
Keyword(s):
Institutional, Marketing, Agribusiness, Production Centers, Multiple Regression.
Abstract:
Farmers are still difficult to escape from intermediary traders. They are often as the smallest party in the marketing system of agricultural production centers. The objectives of this research is to identify various forms of agribusiness marketing institutions, to analyze the factors that influence the use of agribusiness centers, and to develop model for agribusiness marketing institutional development policies. The research populations are farmers, traders and consumers in 6 regencies in North Sumatra. Sample was collected using convenience sampling and snowball sampling methods. There are 130 farmers 50 traders, 6 commodities namely: rice, corn, cabbage, red chili, orange and meat with. The data were analyzed by using multiple regression method. Parameters such as farmer’s age, education level, farmer’s knowledge on agribusiness centers, farmers’ informal ties with non agribusiness center institutions and farmers participation in counseling have positive value, while products vo
lume and distance to agribusiness center have negative value. Farmer’s decision to utilize the agribusiness center was significantly influenced by farmer’s knowledge on the agribusiness center and informal ties with non agribusiness center institutions. Marketing institutions in this agriculture production centers are establishment of agribusiness units by involving input traders, farmer groups,and tradersunder the same management control, the development of production and commodity markets information systems and partnership development.
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