Factors Influencing Marketing Margin Behavior of Sheep Trade in West Java



A. Priyanti(1*), D. Priyanto(2), S. Mawi(3)

(1) Research Institute for Animal Production PO Box 221, Bogor 16002, Indonesia
(2) Research Institute for Animal Production PO Box 221, Bogor 16002, Indonesia
(3) Research Institute for Animal Production PO Box 221, Bogor 16002, Indonesia
(*) Corresponding Author

Abstract


Marketing margin is the difference between the price received by producers and that paid by consumers. Both, producers and consumers are concemed about the size of marketing margins, changes in marketing margins and the incidence of
changes in margins. A study was carried out in order to identify and qualify factors that influence the marketing margin behavior for sheep trade in West Java. The data were gathered from a survey that was conducted in Karawang and Subang during the period of October 1993. A total of 40 farmers were questioned in this study using a structural questionnaires. The ordinary least squares method
from Shazam 6.2 is used to isolate factors that determine the marketing margin for sheep trade. The results of the study indicate that per unit marketing services/transfer cost, location of trade, sex, body weight and age of the animals are factors that influence per unit marketing margin (P5005) and that of type of consumers does not show any significant level (P5005). The study provide
evidence that sheep fanners will get higher benefit for greater marketing margin, on the other hand, consumers will loose.


Keywords


Sheep Trade, Marketing Margin, Factors Influencing

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