The analysis of marketing channels and price disparity of shallots in North Sumatera Province

Abstract

One of the horticultural commodities that is widely cultivated in the province of North Sumatera is shallots. There are 4 districts in North Sumatera which are the centres of shallot production: Samosir, Simalungun, North Tapanuli and Karo. The Objectives of the study is to analyse the marketing channels, price spread, share margin and function of the shallot marketing channel in North Sumatera. The result of this research is that the highest level of disparity in North Sumatera is Channel II in the Karo region with a price difference of IDR. 10,500; selling price at the farmer level IDR. 8,000; selling price at consumer level IDR. 18,500. Meanwhile, the lowest level of disparity is found in Channel I in the Samosir region, with a selling price at the farmer level of IDR. 16,000; and the selling price at the consumer level is IDR. 20,000. The highest level of disparity between marketing institutions in North Sumatera is in channel II in Samosir Regency, which is between the margin ratio of traders and farmers. The lowest level of disparity between marketing institutions in North Sumatera is in channel II in North Tapanuli Regency, which is between the margin ratio of collectors and retailers.