Efficiency of Marketing Distribution of Palm Oil in Sub District of Selesai Regency of Langkat

Abstract

Abstract Efficiency of marketing distribution is realized if the system provides the customer and stakeholders that involved in the distribution of product/service from the farmer as producer to the final consumer with satisfaction. Efficiency is the final goal will be achieved in a marketing system. The objective of this research is to identify the marketing distribution of palm oil in sub district of Selesai Regency of Langkat, to analyze the margin accepted by the marketing agency and to analyze the price accepted by the producer of palm oil in sub district of Selesai regency of Langkat. Sub district of Selesai is one of area in Regency of Langkat as producer of palm oil in Province of North Sumatera. Its location is very potential, reachable and has a strategic position that near to the palm oil factory of PT. Raja Tengah and PT. Amat Tani. In the marketing of their product, the farmer is helped by the small agent and big agent. The data is processed and analyzed by qualitative and quantitative method to study the efficiency of marketing distribution of palm oil. The research of qualitative analysis of efficiency of marketing distribution of palm oil through marketing agent and distributor, and the marketing function. The study of quantitative analysis of efficiency of marketing distribution of palm oil is described descriptively to describe the detail of marketing distribution, marketing function and any problems. While quantitative analysis was conducted by marketing margin approach, farmer‘s share, and profit to cost ratio. Based on analysis of marketing system it concluded that marketing distribution I is more efficient. This marketing distribution must be applied by farmer in sub district of Selesai. The other alternative that applied by farmer is to increase the quality of FFB, to build partnership to the palm oil factory, big and small agent, to maintain the quality of FFB and to up date the price information of FFB and the market development. Keywords : Palm Oil, Marketing system, Efficiency of Marketing distribution