SHALLOT AGRIBUSINESS VALUE CHAIN IN LOWLAND AREA OF MAJALENGKA REGENCY, WEST JAVA PROVINCE, INDONESIA

SRI AYU ANDAYANI¹, SUHAENI², YAYAN SUMEKAR³*
¹Faculty of Agriculture, Universitas Majalengka, Majalengka, 45418, Indonesia
²Faculty of Agriculture, Universitas Singaperbangsa, Karawang, 41361, Indonesia
³Faculty of Agriculture, Universitas Padjadjaran, Sumedang, 45363, Indonesia
* Corresponding Author : yayan.sumekar@gmail.com

Received : 03-04-2018     Accepted : 11-04-2018     Published : 15-04-2018
Volume : 10     Issue : 7       Pages : 5714 - 5720
Int J Agr Sci 10.7 (2018):5714-5720

Keywords : Value Chain, Shallot, Marketing, Lowland Area
Academic Editor : Dr Pradeep Mishra
Conflict of Interest : None declared
Acknowledgements/Funding : Author thankful to Faculty of Agriculture, Universitas Majalengka; Faculty of Agriculture, Universitas Singaperbangsa, and Faculty of Agriculture Universitas Padjadjaran, Indonesia
Author Contribution : All author equally contributed

Shallot (red onion) is one of the economic value of horticultural commodities in Indonesia. This commodityis potential to increase farmers’ income. Shallot farmers supposedlyhave receivedprofit from the high price of shallot in the market, but in reality, the economic conditions of shallot farmers in Majalengka lowlands area have not changed yet. The purpose of this research is to study the value chain of shallot agribusiness in the lowland area of Majalengka Regency which apply justice in each chains. Data collection is obtained using the interview techniquethrough questionnaires that had already been prepared in advance. The respondents in this research include agroinput actors,producer or shallot farmers, market participants (wholesalers, traders, retailers), financial institutions, partners, and other related participants needed. This research uses value chain analysis by applying stages of the entry point, value chain mapping, value chain management, determining the profit margin on each chains’ actors, analysis of governance structure, and upgrading value chain. The result shows that the agribusiness value chain need to be improved in terms of management in both primary andsupporting actors.This shallot business is profitable and worth the effort. In the lowland area there are 5 shallot marketing channel patterns. The biggest profit margin is in the channel pattern 1. Observation on the value chain showsthat farmers still have a low bargaining position. One of the efforts to overcome the problem is by reviving the role of cooperative/Gapoktan (farmers group assembly) in the marketing process to minimize the role of intermediaries.

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