Marketing and Value Added of Cocoa Beans in Madiun District, East Java

Abstract

Madiun district as largest sentral of people's cocoa plantations in East Java, the production of cocoa beans of this area at 2009 until 2011 is increased. To increase farmers' income, increased production should be followed by the development of efficient marketing. Marketing of cocoa beans in Madiun involving many actors with different behaviors. Investment policy and implementation of export duties are expected to improve the cocoa industry and develop the performance of the cocoa market in the country. The development of marketing performance with various alternatives, provide opportunities for cocoa farmers to select marketing channels for optimal profit. The purpose of this research is to analyze: 1) performance cocoa beans supply chain, 2) factors that influence of marketing channels choice in cocoa beans supply chain in Madiun District , and 3) added value from the processing of cocoa beans. This research was conducted in Madiun District, East Java. Primary data collected through interviews using questionnaires. The type and number of respondents consisted 90 cocoa farmers, 18 colletors, two large cocoa trader and one processed industry. Analysis of cocoa beans supply chain descriptions using FSCN process framework. Marketing efficiency measured from the margin, farmer's share, the ratio of benefits and costs. The factors that determine the cohice of farmers to supply chains used quantitative approach with mutinomial logit regression model, and added value analysis method used is Hayami. The results showed that the most efficient marketing channel is the channel that connects the cocoa farmers directly to the district level collector. Factors that affect decision making of cocoa farmers to sell cocoa beans are farmer age, farmer education, the selling price of cocoa beans, and the main livelihood of the farmers. Secondary products of cocoa beans that produce the highest profit is cocoa powder and cocoa butter. To increase the income of farmers suggested to improve the quality of cocoa beans by reducing the water content and doing fermentation of cocoa beans, so that farmers can directly sell to district level collector with better price. To improve the performance of small and medium scale cocoa processing industry required Puslitkoka role and the government should be able to find specific market access.