An analysis of marketing performance of tambak commodities in West Nusa Tenggara Province, Indonesia
Date
1983
Authors
Adisoewignyo, Wargono
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Publisher
Canberra, ACT : The Australian National University
Abstract
Recently the Indonesian Government has become aware of the
importance of the brackish water pond (tambak) culture to stabilize
income, employment opportunity, and nutritional requirements in rural
areas. Among Asian countries, Indonesia has the greatest potential
area of tambaks that stretch throughout her coastal zones, but the
yields are far below the yields in China, India, Taiwan and the
Philippines. The main inhibitive determinants are poor techniques of
production and poor performance of the present marketing system.
This study examines the marketing performance of the
brackish-water pond (BWP) commodity (fry, milkfish and prawn), with
the province of WNT as a case study. Due to the lack of time series
records and previous empirical studies, this present study only
concentrates on a short run phenomenon of the marketing system.
The Gross Marketing Margins (GMM) concept was used to examine the
hypothesis that middlemen were exploitive agents in the marketing
process of tambak commodity. It was decided to disaggregate final
prices and 'GMM' into two main groups of marketing charges (profits)
and marketing costs (factors revenue). The 'GMM' is subdivided
further according to marketing stages and tasks. The results showed
that among marketing participants, farmers or growers are the group
who receive at least 50% of the final prices, irrespective of market
levels (export, districts, and village) and kinds of commodity (fry,
milkfish and prawn). The tendency showed that (a) as the distance
from farm to final market increased , farmers' share decreased, and (b) milkfish and prawn farmers received less than fry farmers. The
analysis of cost elements, on the other hand concluded that it is hard
to identify the presence of an operational inefficiency in the present
system. But considering the magnitude of percentages of risks, sales
tax, and marketing facility fees as indicators this study discovered
that (a) within similar flows the risks for fry are greater than for
milkfish, while cost of transporting the latter is higher than of the
former, (b) a possible way is opened for reducing this element if
appropriate maintenance and storage facilities for respective
commodities are provided, and (c) joining producers and consumers or
buyers centers with a better road network may also reduce risks.
Government intervention is necessary for the establishment of such
appropriate infrastructure facilities.
In terms of the average of marketing charge percentages or rates
of returns on investment (ROI) this study also found that (a) fry
traders at all market levels receive more profits than fish and prawn
traders, and (b) after deducting depreciation (at alternatives of 5%
and 10%) and opportunity cost of capital (at an assumed rate of 18%),
the results showed that there was some 'excess* revenue in case of fry
marketing, particularly in the export market to East Java, and in the
intra-district market in Sumbawa.
In regard to any reduction in marketing costs and fostering a
decrease in the 'excess' profits, some mechanisms are finally
discussed. Data improvement and further detailed study are required
for more definitive answers to the problems raised by this study.
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Thesis (Masters sub-thesis)
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Open Access
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