Comparison of Supply Chain Structure and Performance Through Agribusiness Sub Terminals (STA) and Collector Traders in West Sumatra Province, Indonesia

Abstract

Marketing of agricultural products generally has a long chain and depends on downstream market players, thus providing low profits for producers. STA is a marketing institution that aims to increase added value for farmers by shortening the supply chain. The objectives of this research are 1) to describe the supply chain through STA institutions and collecting trader institutions and 2) to analyze the performance of the supply chain through STA institutions and collecting trader institutions. The method used is the Food Supply Chain Network (FSCN) analysis framework and marketing efficiency with a marketing margin and farmer's share approach. The research results show that the cucumber supply chain through the STA institution or collecting traders has been running well; at the STA institution, there are five marketing channels, while at the collecting trader institution, there are four marketing channels. The marketing margin value at STA institutions is 32 percent, with a farmer's share value of 67.9 percent. Meanwhile, at collecting trader institutions, the marketing margin value is 35 percent, with a farmer's share value of 65.1 percent. This shows that the more efficient way between the STA institution and the collecting trader institution is through the STA institution. Therefore, in optimizing the STA institution, it is necessary to disseminate it to farmers.