Russian Journal of Agricultural and Socio-Economic Sciences (Feb 2019)
DEVELOPMENT AND SUBJECT FOR PARTNERSHIP BETWEEN STALLHOLDERS AND CRUMB RUBBER FACTORIES IN INDONESIA RUBBER MARKETING
Abstract
The research aims to identify constraints in developing the marketing pattern of rubber in partnership. The study was conducted on 12 processing and marketing units (PMU) of rubber material which were divided into 6 each applying partnership marketing patterns and 6 non partnerships, 9 crumb rubber factories consisting of 3 partnerships, the rest not implementing partnerships. 180 sample farmers who each applied partnerships and 90 did not implement partnerships. The method of research is in depth study by observing and interviewing to exploring the variety of reasons join or not in certain marketing pattern, advantage and disadvantage the farmers’ decisions in form of marketing institution, which is partnership and non partnership. Data analyzed by using quantitative and qualitative descriptively method. The research result indicated that crumb rubber factories’ reasons had not cooperated with in partnership pattern are (1) the difficulty in determining of the rubber material price, (2) the uncertained supply of farmer’s rubber for factory, (3) the supply is often fulfilled by traditional marketing institution, the farmers is often not hold the agreement especially during the session of low rubber price, however the factory still give guidance and help the farmers as partnership member. This research result indicates that some farmer’s reasons which had not cooperated with in partnership pattern are (1) it is the lower rubber material price by factories than by middlemen, (2) PMUs is not active any more, (3) the farmers have illegal agreement in form of credit and paid by selling their product to the middlemen, (4) the payment duration of the farmer’s product in auction system is too long according to the farmers and (5) the farmers often could not fulfilled selling quote of rubber material as determined in contract. The partnership members in this cooperation should discuss any problems to get good solution. The government sould always support and facilitate the commitment of partnership between the farmers and the crumb rubber factories to increase their performance in rubber marketing and to reduce any intervention from the outer institution (such as local marketing institution).
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