Reduce the number of intermediaries

Oct 13, 2025 by thesweetdesigns.com 0 views

Corn Agribusiness Supply Chain Analysis in Tigabinanga Village: A Case Study

Introduction

The agricultural sector plays a vital role in the economy of many countries, including Indonesia. One of the most widely cultivated crops in Indonesia is corn, which is not only a staple food but also a key ingredient in various industries such as animal feed, food processing, and biofuel production. In this article, we will analyze the corn supply chain in Tigabinanga Village, Tigabinanga District, Karo Regency, with the aim of identifying areas for improvement and providing recommendations for enhancing the efficiency and sustainability of the supply chain.

Background

The research conducted in 2017 aimed to analyze the corn supply chain in Tigabinanga Village, with three main objectives: (1) to evaluate the condition of the corn supply chain at the study site; (2) to analyze marketing costs, price spreads, and profit margins of each channel; and (3) to assess the performance of the corn supply chain in the region. The study used a purposive sampling method to select relevant areas and collected primary and secondary data through direct interviews with farmers and related institutions and agencies.

Methodology

The study employed descriptive analysis methods, simple tabulation analysis, and marketing efficiency calculations to analyze the data. The results showed that the condition of the corn supply chain in Tigabinanga Village was quite good, with a selling price of corn at the farm level of Rp 3,000/kg, increasing to Rp 4,000/kg at the processing factory level, and finally reaching Rp 8,000/kg at the consumer level.

Marketing Analysis and Supply Chain Performance

The analysis revealed a significant difference between the selling price of farmers and the purchase price of consumers, indicating potential for improving the welfare of farmers by reducing marketing costs incurred by third parties. The role of intermediary traders was found to be crucial, although they also took advantage of existing margins. To increase the efficiency of the supply chain, reducing the number of intermediaries in distribution and facilitating direct marketing from farmers to consumers were recommended.

Utilizing Information Technology

Improved marketing systems can be achieved by utilizing information technology, such as digital platforms that bring together farmers and consumers directly, eliminating the need for many intermediaries. Additionally, counseling on more efficient agricultural engineering and supply chain management can help farmers increase crops and reduce costs.

Conclusion

In conclusion, the condition of the corn supply chain in Tigabinanga Village can be considered good, but there is still potential for significant improvement. By focusing on marketing efficiency and cost reduction at the intermediary level, farmers can increase their income, while consumers can also get better prices. Investment in technology and education will be the key to achieving these goals, creating a more sustainable and beneficial agribusiness system for all parties.

Recommendations

Based on the findings of this study, the following recommendations are made:

Reduce the number of intermediaries: By facilitating direct marketing from farmers to consumers, farmers can get better prices, and consumers can also enjoy a cheaper price.
Utilize information technology: Digital platforms can be used to bring together farmers and consumers directly, eliminating the need for many intermediaries.
Invest in education and training: Counseling on more efficient agricultural engineering and supply chain management can help farmers increase crops and reduce costs.
Improve marketing systems: Improved marketing systems can be achieved by reducing marketing costs incurred by third parties and increasing the efficiency of the supply chain.

Future Research Directions

Future research should focus on:

Investigating the impact of information technology on the corn supply chain: A study on the effectiveness of digital platforms in improving the efficiency of the supply chain would be beneficial.
Analyzing the role of intermediary traders: A deeper understanding of the role of intermediary traders in the corn supply chain is necessary to identify areas for improvement.
Developing strategies for reducing marketing costs: Research on strategies for reducing marketing costs incurred by third parties would be beneficial in improving the welfare of farmers.

Limitations of the Study

This study has several limitations, including:

Limited sample size: The study was conducted in a single village, which may not be representative of the entire region.
Data collection methods: The study relied on primary and secondary data, which may not be comprehensive or accurate.
Analysis methods: The study employed descriptive analysis methods, which may not provide a complete understanding of the corn supply chain.

Conclusion

In conclusion, this study provides valuable insights into the corn supply chain in Tigabinanga Village, highlighting areas for improvement and providing recommendations for enhancing the efficiency and sustainability of the supply chain. Future research should focus on investigating the impact of information technology on the corn supply chain, analyzing the role of intermediary traders, and developing strategies for reducing marketing costs.
Corn Agribusiness Supply Chain Analysis in Tigabinanga Village: A Q&A

Introduction

In our previous article, we analyzed the corn supply chain in Tigabinanga Village, Tigabinanga District, Karo Regency, with the aim of identifying areas for improvement and providing recommendations for enhancing the efficiency and sustainability of the supply chain. In this article, we will answer some of the most frequently asked questions (FAQs) related to the study.

Q: What is the current condition of the corn supply chain in Tigabinanga Village?

A: The current condition of the corn supply chain in Tigabinanga Village is quite good, with a selling price of corn at the farm level of Rp 3,000/kg, increasing to Rp 4,000/kg at the processing factory level, and finally reaching Rp 8,000/kg at the consumer level.

Q: What are the main objectives of the study?

A: The main objectives of the study are: (1) to evaluate the condition of the corn supply chain at the study site; (2) to analyze marketing costs, price spreads, and profit margins of each channel; and (3) to assess the performance of the corn supply chain in the region.

Q: What are the key findings of the study?

A: The key findings of the study are: (1) the condition of the corn supply chain in Tigabinanga Village is quite good; (2) there is a significant difference between the selling price of farmers and the purchase price of consumers; and (3) the role of intermediary traders is crucial, although they also take advantage of existing margins.

Q: What are the recommendations of the study?

A: The recommendations of the study are: (1) reduce the number of intermediaries; (2) utilize information technology; (3) invest in education and training; and (4) improve marketing systems.

Q: What are the limitations of the study?

A: The limitations of the study are: (1) limited sample size; (2) data collection methods; and (3) analysis methods.

Q: What are the future research directions?

A: The future research directions are: (1) investigating the impact of information technology on the corn supply chain; (2) analyzing the role of intermediary traders; and (3) developing strategies for reducing marketing costs.

Q: What are the implications of the study for policymakers and stakeholders?

A: The implications of the study for policymakers and stakeholders are: (1) the need to improve the efficiency and sustainability of the corn supply chain; (2) the importance of reducing marketing costs incurred by third parties; and (3) the need to invest in education and training for farmers.

Q: What are the potential benefits of implementing the recommendations of the study?

A: The potential benefits of implementing the recommendations of the study are: (1) increased income for farmers; (2) better prices for consumers; and (3) improved efficiency and sustainability of the corn supply chain.

Conclusion

In conclusion, this Q&A article provides valuable insights into the corn supply chain in Tigabinanga Village, highlighting areas for improvement and providing recommendations for enhancing the efficiency and sustainability of the supply chain. We hope that this article will be useful for policymakers, stakeholders, and researchers interested in the agricultural sector.

Additional Resources

For more information on the study, please refer to the following resources:

Full report: The full report of the study is available upon request.
Data: The data used in the study is available upon request.
References: The references cited in the study are available upon request.

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