The Role of Non-cooperative Institution in Milk Marketing Chain in the District of Semarang, Central Java

Ratna Ayu Saptati

Abstract


The study aims to assess the business characteristics of milk collectors and their roles in the marketing chain of milk in the district of Semarang, Central Java. The research was based on the original data obtained by interviews using a questionnaire in January, 2015 in the sub district of Getasan. Under the random sampling method, 32 milk collectors who collect and sell milk from dairy farmers were selected. For purpose of comparison, this business was fitted into three groups, i.e., business with capacity below 100, 100-500, and above 500 liters per day. Descriptive analysis was used to explain the findings of this study. Gross margin analysis and yield (price) uncertainty ratio were also used to examine the economic benefit gained and the degree of risks faced by milk collectors. Results revealed that the covered distance, the number of milk depositors, the amount of absorbed milk, gross margin, and net income were increased with the increasing capacity of business. In line with these, the greater the business capacity, the greater the risks be borne by collectors. The coefficient of price and yield uncertainty for business with capacity of more than 500 liters/day was the highest among groups. However, for overall, both prices and yield uncertainties faced by collectors were relatively low with coefficient of less than 20%. It means that risks borne by collectors were also moderately low. The roles of milk collectors in the milk marketing chain in Getasan were quite important because they were main milk suppliers for cooperatives. About 97% of milk was supplied by milk collectors. Collectors were also main milk buyers for dairy farmers. They connect farmers (either cooperative member or not) particularly in remote areas to cooperatives or greater milk collector in selling milk. They also helped farmers to overcome the problem related to limited access to formal financial institutions by providing loans.

Keywords


Non-Cooperative Institution; Role; Marketing Chain; Dairy; Semarang

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DOI: 10.14334/Proc.Intsem.LPVT-2016-p.577-586

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