Analysis Of Siam Orange (Citrus Nobilis) (Case Study: Purbatua Baru Village, Silimakuta Kec, Simalungun Regency)

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Analysis of Siam Orange (Citrus nobilis) in Purbatua Baru Village, Silimakuta Kec, Simalungun Regency: A Case Study

Introduction

The Siam orange (Citrus nobilis) is one of the most promising agricultural commodities in Indonesia, with high economic potential and a growing demand in the domestic market. In Purbatua Baru Village, Silimakuta District, Simalungun Regency, the production and trading of Siam oranges have been a significant contributor to the local economy. However, the efficiency of the marketing system and the distribution channels used in the region have not been thoroughly analyzed. This case study aims to investigate the trend of Siam orange production, describe the pattern of distribution channels, and calculate the margin share received by each perpetrator of the trading in the region.

Research Methods

The research method used in this study is a combination of trend analysis and descriptive analysis with simple tabulation. The researchers analyzed the relationship between the prices received by producers or traders and the prices paid by consumers. This relationship is referred to as the share margin, which provides an overview of how much percentage of profits gets by each perpetrator in the trading channel. In addition, the efficiency of the marketing system was calculated using the efficiency formula to compare the performance between the existing distribution channels.

Research Results

The results of the study showed a positive trend in the production of Siam oranges between 2009 and 2018. In Purbatua Village, there are only two main trading channels:

  1. Channel I: Farmers - Provincial Big Traders
  2. Channel II: Farmers - Medan Big Traders - Medan Retailers Traders

The share margins for producers in Channel I reached 99.36%, while for Channel II, the margins varied: 27.3% for AB size, 32.8% for C size, 65% for D size, and -102.4% for BS size. The margin share for agents in Channel I is 81.18%, while in Channel II, each is 20.3% for AB size, 18.4% for C size, 21% for D size, and -112.3% for BS size.

The margin share of the Medan Large Traders in Channel II is 10.8% for AB size, 9.2% for C size, 10.9% for D size, and -16.3% for BS size. Meanwhile, the margin share of Medan retailers is 48.1% for AB size, 56.9% for C size, 19.7% for D size, and -52.5% for BS size.

Based on the calculation of efficiency, the trading channel I shows greater efficiency compared to Channel II, with efficiency values of 2.7 and 2.6, respectively.

Additional Analysis and Explanation

The data above shows that Channel I is far more beneficial for producers and agents compared to Channel II. This indicates that the selection of appropriate distribution channels can significantly influence profitability for farmers. The positive production trend of Siam oranges shows that the demand for oranges increases, so it is essential for farmers to continue to improve the quality and quantity of production.

On the other hand, the high share of margins for producers in Channel I also shows that the distribution system is more efficient and profitable. However, challenges remain, especially in regulating prices and distribution costs that can affect farmers' income. Therefore, support is needed from the government and relevant institutions to create a better and more fair trading system.

Conclusion

By analyzing various aspects of the Siam orange trading, this research provides important insights for the development of the agricultural sector, especially in increasing the competitiveness of local products in the increasingly competitive market. Efforts to increase efficiency in the distribution channel and fair price determination are the key to improving the welfare of farmers and the sustainability of the production of Siam oranges in Purbatua Baru Village.

Recommendations

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

  1. Improving the distribution channel: The government and relevant institutions should support the development of a more efficient and fair distribution channel, which can benefit farmers and increase the competitiveness of local products.
  2. Regulating prices and distribution costs: The government should regulate prices and distribution costs to ensure that farmers receive fair prices for their products and that the distribution costs are reasonable.
  3. Increasing the quality and quantity of production: Farmers should continue to improve the quality and quantity of production to meet the increasing demand for Siam oranges.
  4. Providing support to farmers: The government and relevant institutions should provide support to farmers, including training, credit facilities, and marketing assistance, to help them improve their productivity and competitiveness.

By implementing these recommendations, the welfare of farmers and the sustainability of the production of Siam oranges in Purbatua Baru Village can be improved, and the competitiveness of local products in the market can be increased.
Q&A: Analysis of Siam Orange (Citrus nobilis) in Purbatua Baru Village, Silimakuta Kec, Simalungun Regency

Frequently Asked Questions

In this Q&A article, we will address some of the most common questions related to the analysis of Siam orange (Citrus nobilis) in Purbatua Baru Village, Silimakuta Kec, Simalungun Regency.

Q: What is the significance of Siam orange (Citrus nobilis) in Indonesia?

A: Siam orange (Citrus nobilis) is one of the most promising agricultural commodities in Indonesia, with high economic potential and a growing demand in the domestic market.

Q: What are the two main trading channels for Siam oranges in Purbatua Baru Village?

A: The two main trading channels for Siam oranges in Purbatua Baru Village are:

  1. Channel I: Farmers - Provincial Big Traders
  2. Channel II: Farmers - Medan Big Traders - Medan Retailers Traders

Q: What is the share margin for producers in Channel I?

A: The share margin for producers in Channel I is 99.36%.

Q: What is the share margin for agents in Channel I?

A: The share margin for agents in Channel I is 81.18%.

Q: What is the efficiency of the marketing system in Channel I?

A: The efficiency of the marketing system in Channel I is 2.7.

Q: What are the challenges faced by farmers in Purbatua Baru Village?

A: The challenges faced by farmers in Purbatua Baru Village include regulating prices and distribution costs that can affect farmers' income.

Q: What recommendations are made to improve the welfare of farmers and the sustainability of the production of Siam oranges in Purbatua Baru Village?

A: The following recommendations are made:

  1. Improving the distribution channel: The government and relevant institutions should support the development of a more efficient and fair distribution channel.
  2. Regulating prices and distribution costs: The government should regulate prices and distribution costs to ensure that farmers receive fair prices for their products and that the distribution costs are reasonable.
  3. Increasing the quality and quantity of production: Farmers should continue to improve the quality and quantity of production to meet the increasing demand for Siam oranges.
  4. Providing support to farmers: The government and relevant institutions should provide support to farmers, including training, credit facilities, and marketing assistance, to help them improve their productivity and competitiveness.

Q: What are the implications of this study for the development of the agricultural sector in Indonesia?

A: This study provides important insights for the development of the agricultural sector in Indonesia, especially in increasing the competitiveness of local products in the increasingly competitive market. Efforts to increase efficiency in the distribution channel and fair price determination are the key to improving the welfare of farmers and the sustainability of the production of Siam oranges in Purbatua Baru Village.

Q: What are the limitations of this study?

A: The limitations of this study include the small sample size and the limited scope of the study, which only focused on Purbatua Baru Village. Future studies should aim to include a larger sample size and a broader scope to provide more comprehensive insights into the Siam orange industry in Indonesia.