Formulation of SCP-Based Coconut Sugar Marketing Model Through Analysis of Marketing Patterns in Central Java Province, Indonesia

Abstract

This study aims to analyze the marketing pattern of coconut sugar products, describe the stakeholders involved in the marketing of coconut sugar, and develop a structure, conduct, performance (SCP) based marketing model for coconut sugar. This research method is a quantitative descriptive method. The research location was determined purposively in the coconut sugar production center of Central Java Province (Banyumas, Purbalingga, and Cilacap Regencies). The research respondents were 60 people consisting of coconut sugar makers who were members of the Joint Business Group (KUB) and 60 people, 10 collectors traders, 2 wholesalers, and 4 institutional exporters. Data were analyzed descriptively. Data analysis for the basic structure by measuring market share size and concentration (CR4). The basis of conduct is through analysis of sales and purchasing processes, payment systems, and institutional cooperation. The basis of performance is obtained from the analysis of the margins of the trading system and the level of prices received by farmers. The results showed that there are two marketing channels for coconut sugar. A tight oligopsony is formed based on the CR4 (Concentration Ratio for the Big Four) value, while the Herfindahl index value shows that the market formed is an oligopoly. Market behavior occurs when the payment system is made in cash at the level of collectors and non-cash at the level of wholesalers. In market performance, the largest marketing margin is in the marketing channel pattern 1 of Rp. 8415.4/kg, the lowest in the channel 2 pattern of Rp. 6500/kg. The highest Farmer share value is in the marketing channel pattern 2 as 74%, and the lowest is in the channel 1 pattern at 66.3%.