Analysis Of Development Sago Starch Local Food Product Marketing In The Southeast Sulawesi Province
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Talent Development & Excellence 1754
Vol.12, No.1, 2020, 1754-1764
Analysis Of Development Sago Starch Local Food Product
Marketing In The Southeast Sulawesi Province
Surni1*, Muhammad Aswar Limi1, Munirwan Zani1, Abdul Gafaruddin1, Rosmawaty1
1
Department of Agribusiness, Faculty of Agriculture, University of Halu Oleo Kampus Hijau
Bumi Tridharma Anduonohu, Kendari 93232, Southeast Sulawesi, Indonesia
surni_unhalu@yahoo.com.
Abstract
This study aims to determine: (1) the flow of sago starch products and information in the marketing of sago starch
in the Southeast Sulawesi Province; (2) marketing efficiency of sago starch in Southeast Sulawesi Province; (3)
added value of sago starch products. The location determination of the research was carried out intentionally in
five city districts/regencies (sago production centers: Kolaka, Koltim, Konawe, Konse, and Kendari City) in
Southeast Sulawesi Province. The samples determination conducted by the survey method for the sample of sago
processing farmers and the snowball sampling method for the determination of the marketing actors. The research
respondents were sago processing farmers and market participants who marketed sago starch. Data analysis
conducted descriptively and added value analysis with the concept by Hayami et al. (1987). The research results
showed that the marketing of sago starch products in Southeast Sulawesi through two marketing channels, namely
from sago processing farmers to retailers, finally to the end consumer amounted to 74,39%. The second marketing
channel from farmers to large traders/wholesalers (UD.Samas Pelabuhan Kendari and UD. Konawe Sinonggi)
amounted to 25,61%. The percentage of the price received by sago-processing farmers (farmer’s share) of first
marketing channel (FS=78,69%) bigger than farmer's share of the second marketing channel (FS= 67,24%). This
shows that sago marketing in Southeast Sulawesi is running efficiently, the first marketing channel is more
efficient than the second marketing channel. Profits of market participants involved in marketing sago starch
products, the second marketing channel market participant, the profit (IDR..319,15 / kg) is greater than the profit
of the first marketing channel market participant (IDR.303,96 / kg). The added value of starch products was
formed equal to IDR. 1.450,63/kg with an added value ratio of 76,87%; labor share ratio of 30,24%; and profit
ratio of 69,76%.
Keywords: Marketing, sago, value, added, processing
INTRODUCTION
At present the condition of the global agricultural economy has changed, there has been
an increase in the need and desire for farmers to get benefit from a growing market. The
Government of Indonesia in its efforts to develop agriculture in the millennium era is directed
at the agriculture development that oriented on agribusiness and agroindustry by considering
location specific-based agricultural commodities. In this regard President Joko Widodo
launched the idea of farmer corporations with the aim that farmers be involved and get added
value from the processing of agricultural production (Dewi, 2019). The availability of
sufficient food nationally does not guarantee food security at the household / individual level.
Determinants of food security at the local level or at the household level are access (physical
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and economic) to food, can be seen from the level of production, demand, supply, and
marketing of food.
At the sago symposium in Pekan Baru Riau Province on August 7, 2018, the
symposium participants proposed in front of the sago activists of ASEAN countries, provincial
representatives, and sago-producing districts/regencies in Indonesia that sago should be able to
be a host which capable of supporting national food security (Irwan. 2018). This is supported
by the commitment of the government of Southeast Sulawesi Province to make sago
commodity as one of the main targets in the 39th World Food Day/hari pangan sedunia (HPS)
on 2-5 November 2019 which is centered in the South Konawe Regency, Southeast Sulawesi
Province (HPS Sultra, 2019) .
The development of sago processing business groups to develop local sago food
products is very strategic considering this commodity for some people of Southeast Sulawesi
such as Kendari-Kolaka (Tolaki-Mekongga ethnic) sago has been the main food since ancient
times, pride local food commodity (primadona). This was reinforced by Pasolon (2017) that
sago is a world commodity, healthy food, industrial material, protecting the earth and has local
cultural values in the society of Southeast Sulawesi. Further stated that the sago commodity is
one of the potential commodities developed for food and bioenergy in the bioindustry system.
Sago commodity in Southeast Sulawesi Province, especially in mainland Southeast
Sulawesi develops naturally from generation to generation both in terms of its plant population
and processing method. The process of getting sago starch in this area is carried out in groups
with a profit sharing system between the owner of the sago clump or the capital owner becomes
the group leader with the sago manager member ± 4 people (half is for the capital owner and
the remaining equally divided by a number of members), the other group is the head of the
family and members of the same family (mobilizing family members). The processing to get
sago starch with simple equipment, such as machetes or axes. Next, sago stems are cleaned and
cut up to 1-2 meters length, then these pieces are halved. Starch pith containing flour is crushed
with a device called nanni; and the work of destroying the sago pith is called tap/menokok in
the old way and grating/pemarutan in the new way. It can be said that sago flour is made from
sago starch pith, the stages of the process of making sago flour in general go through the
following stages: tree felling, cutting, and cleavage, tapping or grating, squeeze, filtering,
settling, and packaging with an average allocation of time 2 weeks per month ( Surni et al.,
2007; Suharno et al., 2011; Lukas et al., 2017; Surni et al., 2017; Surni et al., 2019).
This commodity is sold in local markets in bulk form, the price is developing following
rate of increase of other commodity prices, such as the price of sago in 1999 amounted to IDR.
470.32 / kg. The price of sago in 2006-2007 equal to IDR..2.000/kg, in 2014 amounted to
IDR..3.500/kg. and the price of this recent bulk sago equal to IDR. 5.000/kg (Surni et al. 2016).
Sago farmers in urgent need selling in the form of sago trees ready for processing at a price
between IDR.. 25.000 - IDR.. 35.000 per tree (an average of IDR.29.000 per tree), whereas if
processing it can produce 85,25 kg of wet sago starch with an average price of IDR. 2.000 per
kg (IDR.170.500), there is a difference (added value) of IDR.141.500 (Surni et al., 2007).
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Sago-processing farmers in their efforts to earn money by bringing sago starch products
to traditional markets, at the consumer center markets in the city or selling them in relatively
large quantities to wholesalers or traders come / pick up at the place of processing, which is
called marketing of sago starch in Southeast Sulawesi Province. Marketing activities in
scientific studies as a reciprocal relationship among the parties that need each other able to
provide added value through the flow of changes in input from the main source into output in
the form of products or services at the request of the end consumer. Sago starch marketing in
Southeast Sulawesi in the outline is through several chains such as from sago processing
farmers, retailers, wholesalers, and consumers or end buyers. Some of these chains or channels,
the sago processing farmers look for marketing that can provide a relatively large percentage
of the price they receive called marketing efficiency (Saefuddin, 1982; Taridala et al., 2013;
Ahmad, 2014; Nursalam, 2018; Murod et al., 2019)
Marketing efficiency is a comparison between the basic price and the price paid by
consumers / end buyers or retail prices (Ayub et al. 2019; Chogou, et al., 2019; Hanna et al.,
209; Ali et al., 2019). Some indicators that can determine the efficiency of marketing activities,
these indicators are the greater (closer to 100%) the share of prices received by farmer
producers (farmer share = FS) with a limit of FS > 50% product marketing runs efficiently.
Conversely, product marketing does not run efficiently if FS ≤ 50% (Surni et al., 2013; Dimas
et al., 2013).
To study the above description, it is hoped produce new breakthroughs in developing
and distributing sago starch support the national priority program on food security. Reviving
the economy of local communities at the rural level of Southeast Sulawesi about food
fulfillment and supports the consumption diversification program. From these ideas, the author
examines them through research entitled: “Analysis of Sago Local Food Product Marketing
in Southeast Sulawesi Province.”
RESEARCH METHODS
(1) Location and Time of Research
This research was conducted in Southeast Sulawesi Province in the districts/regencies
of : East Kolaka, Konawe, South Konawe, Kolaka, and Kendari City, the basic method used
is descriptive method with survey techniques. The survey stage was carried out for data
collection with filling out questionnaires by respondents. Determination of the study location
was conducted purposively and the sampling method using the census method. The
consideration of location determination, from the 17 City Districts/regencies, 5 locations
mentioned above are centers of sago starch products in Southeast Sulawesi Province. Reviewed
from sago commodity development, the highest percentage of production respectively 40,64%
in East Kolaka Regency; 29,23% in Konawe Regency; 2,21% in South Konawe Selatan; 1,42%
in Kolaka Regency; and 0,49% in Kendari City (BPS.2017)
(2) Population and Samples of the Research
Population or the object of this research is the sago starch processing community
business group in Southeast Sulawesi Province. Implementation of the study by using survey
methods with qualitative and quantitative approaches. Primary data obtained directly from
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respondents, informants, and observation results. Respondents in this study were sago-
processing farmers with 48 respondents in 5 city districts/regencies, respectively with 26 group
farmers in Konawe Regency; 13 group farmers in East Kolaka Regency; 3 group farmers in
Kolaka Regency; 3 group farmers in Kendari City; and 3 group farmers in Konawe Selatan
Regency. Sago processing farmers / sago processing groups or traders who handle sago
marketing become a source of data information that can provide information on the other sago
processing farmers / traders, so that the sampling of farmers and traders is determined by
Snowball (Miles and Huberman, 1992). It can be said that tracing the sample of sago
processing farmers through the first "source" of sago processing farmers revealed the second
sago processing farmers and so on, The retrieval of the above sample clarified by Wahyuni Y.
(2011) that the snowball method is a sampling method which initially determines a small
number of samples, then identifies other respondents who are part of the targeted population.
Analysis Tools Used
The product marketing assessment in this study uses descriptive analysis and value
added analysis of the concept of Hayami et al. (1987) with the mathematical models
respectively as follows:
M = He - Hp …………………………………………………….. 1
M = B + π …………………………………………………….. 2
π =M- B ……………………………………………………… 3
HP
FS = ⎯ x 100 ……..….............................................................. 4
HE
or
HE – M M
FS = ⎯⎯⎯ = 1 - ⎯⎯ x 100 .......................................... 5
HE HE
Where:
M = Marketing Margin
He = Retail price is the price given by the end consumer to retailers.
Hp = Basic price is the price paid by middleman / pedagang pengumpul to
producers (sago-processing farmers).
B = Marketing costs consisting of packaging costs, loading and unloading labor,
transportation, and levy taxes.
π = trader profit
FS = Farmer’s share, namely the prices received by producers
Table 1. Format for Sago Starch Product Added Value Analysis
No. List of outputs, inputs and prices Unit
1. Production capacity.....……...……………………………… kg/month
2. Raw material ………………………………………………… kg/month
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3. Labor ………………………………………………... ok/month
4. Conversion factor (1/2)
5. Labor coefficient (3/2)
6. The average product price of sago starch ….………..……… IDR./kg
7. The average wage that applies at the study site ………… IDR./ok
Income and profit:
8 Price of raw materials (sago pith) ..………………………… IDR./kg
9 Other input contributions ………………..…….…………… IDR.
10 Product Value (4 x 6) ………………………………………. IDR./kg
11 a. Added value (10 – 8 – 9 ) ………………………………. IDR/kg
b. Added value ratio (11a/10) …………………………….. %
12 a. Labor rewards ( 5 x 7 ) …………………………… IDR/kg
b. Labor share (12/11a) …………………………… %
13 a. Profit ( 11a – 12a ) ………………………………… IDR/kg
b. Profit rate (13a/11a) ……………………………. %
There are three criteria for the calculation of the added value namely : (1) low value added ratio
if it has a percentage 40% (Hubeiss in Hariance et al., 2017).
RESULTS AND DISCUSSION
Profile of Sago Processing Farmers in Southeast Sulawesi Province
Sago processing farmers in Southeast Sulawesi have an average age of 47.13 years, are
in the age group of 30-61 years. This shows that the age of sago processors in this area is
relatively productive. Sago processing is the main work of respondents so that before entering
the age of 15 years, they have started processing sago with an average experience of 26,90
years, and are in the age group of 15 - 45 years. The education level of the sago processors
52,08%, were elementary school, 45,83% junior high school and 2,08% had senior high school
education. This shows that because of the demands of fulfilling a relatively large family needs,
dropping out of school or the average level of education of sago processing farmers were
elementary and junior high school and no longer continuing to further education level. The
average family dependency 3,73 or 4 people in the group of 2 - 6 people. They inherit the work
of their parents for generations to employ family members or form a sago processing group
with a profit sharing system (half is for the owner of capital / group leader the rest is divided
equally by a number of members).
Product marketing
The results showed that the average sago starch product produced by sago processing
farmers in Southeast Sulawesi Province was 7.119,06 kg per month. A total of 5.296,14 kg or
74,39% are marketed in local markets and in major consumer centers (cities: Konawe, Rate-
Rate, Kolaka, Kendari and Andolo). After ± a month the remaining sago starch products then
sold through the second marketing channel amounted to 25,61% (1.822,92 kg) namely to
wholesalers: UD. Samas Pelabuhan Kendari branch of Surabaya and UD. Konawe Sinonggi
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Jln. Poros Konda Kendari, which will then be delivered to Surabaya, East Java every two
months with an average volume of 175.000 kg (4-5 containers), this is shown in Figure 1.
Sago Retailer 74,39% I End
processing
consumer
farmers
25,61% UD. Samas Pelabuhan Kendari
and UD. Konawe Sinonggi
II
Figure 1. Marketing Channels I and II of Sago Starch Products in Southeast Sulawesi
Sago Starch Marketing Efficiency
To calculate marketing efficiency (farmer share = FS) in this study is the ratio of the
basic price of sago starch to the selling price at the consumer level multiplied by 100 percent,
the closer to 100 percent the more efficient product marketing. The results of the analysis
showed that the marketing of sago starch products in Southeast Sulawesi through two
marketing channels, namely from sago processing farmers to retailers, the last to end
consumers amounted to 74,39%. The second marketing channel from farmers to large
traders/wholesalers (UD.Samas Pelabuhan Kendari and UD. Konawe Sinonggi) amounted to
25,61%. The percentage of the price received by the sago processing farmers (farmer’s share)
of the first marketing channel (FS = 78,69%) is greater than the farmer's share of the second
marketing channel (FS = 67,24%). This shows that sago marketing in Southeast Sulawesi is
running efficiently, the first marketing channel is more efficient than the second marketing
channel. Farmer's share of marketing channel I is lower FS = 79.54% in the sago marketing of
Konawe Regency (Ayub et al., 2019) but higher than FS = 76.39% in marketing channel II of
purebred chicken eggs in Tebing Tinggi Municipality of North Sumatera (Sitti Fadilah, 2018),
lower than FS = 87% in the corn marketing channel in the grobogan regency of Central Java
(Dimas et al., 2013). For sago II marketing channels which indicated by FS = 67,24% lower
but still efficient (FS> 50%). Sago processing farmers choose to sell their sago starch products
in marketing channel II because they are pressured by demands to receive cash relatively
quickly even though the price (IDR.1.950,00/kg) is lower than the price of sago starch sold in
local markets and in major consumer centers for sago starch products (IDR.3.145,00/kg), for
details in Table 2.
Table 2 shows that the marketing margin of marketing channel II (IDR. 950,00/kg) is
greater than the marketing margin of marketing channel I (IDR.851,53/kg) obtained from the
difference in price paid by large traders/wholesalers (IDR.2.900,00/kg) with the basic price of
sago starch products at the level of sago-processing farmers or the price at the retail level
(IDR.1.950,00/kg) which is the same as the overall cost of marketing of sago starch
(IDR.630,85/kg) with the profit obtained IDR.319,15/kg for marketing channels II. Whereas
for marketing channel I, it is obtained from the difference in price paid by the end consumer
(IDR. 3.996,53/kg) with the price paid by retailers to sago processing farmers equal to
IDR.3.145,00/kg, as much as the total marketing cost of sago starch products (IDR.547,49/kg
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with the profits obtained (IDR.303,96/kg). Marketing channel margin II is greater than
marketing channel margin I, burdened by the relatively large transportation costs due to
distance (Kolaka, Koltim, Konawe, Konsel, Kota Kendari) to UD. Samas Pelabuhan Kendari
and UD. Konawe Sinonggi jl. Poros Konda and storage costs on average two months before
being delivered to Surabaya, East Java.
Table 2. Price, Margin, and Marketing Efficiency (Farmer's Share) of Pati Sago on Channels
I and II in Southeast Sulawesi Province in 2019
Marketing Channels I Marketing Channels II
No. Description Physical Physical No. Description Physical Physical
Unit Amount Unit Amount
1. Prices at the IDR/kg 3.145,00 1. Prices at the IDR/kg 1.950,00
farmer level farmer level
2. Prices at the IDR/kg 3.145,00 2. Prices at the IDR/kg 1.950,00
retail level retail level
3. Prices at the end IDR/kg 3.996,53 3. Prices at the IDR/kg 2.900,00
consumer level wholesaler level
4. Marketing costs: 4. Marketing
- Packaging IDR/kg 94,41 costs: IDR/kg 54,86
- Loading and - Packaging
unloading IDR/kg 283,23 - Loading and IDR/kg 164,57
labor IDR/kg 141,61 unloading IDR/kg 274,28
- Transportation IDR/kg 18,88 labor IDR/kg 109,71
- Storage IDR/kg 9,44 - Transportation IDR/kg 27,43
- Retribution - Storage
- Retribution
5. Profit IDR/kg 303,96 5. Profit IDR/kg 319,15
6. Marketing IDR/kg 851,53 6. Marketing IDR/kg 950,00
Margin Margin
7. Farmer’s Share % 78,69 7. Farmer’s Share % 67,24
Added Value of Sago Starch Products
One of the way to increase the price level of a commodity is through a process of change
in form called added value. Menurut B.J. Habibie (2010) nilai tambah adalah gerakan
rekayasa teknologi manusia bagaimana mengolah bahan baku menjadi bahan yang sangat
berharga berkali-kali lipat. The results of the study in Table 3 show that the added value of
sago starch formed was IDR.1.450,63 / kg. Conversion factor obtained amounted to 0,60
implies that from the raw material of sago pith into wet sago starch products equal to 60%,
labor coefficient of 0,00034 implies that 11.838,28 kg of raw material of sago pith is able to be
worked by 4 ok/person perhead for a month to produce sago starch products with an average
of 7.119,06 kg.
Table 3. Results of Added Value Calculation by the Concepts of Hayami et al. 1987
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No. List of outputs, inputs and prices Unit Value
1. Results of sago starch .……...…………… kg 7.119,06
2. Raw material ……………………………. kg 11.838,28
3. Labor…………………………………….. ok 4
4. Conversion factor (1/2).............................. 0,60
5. Labor coefficient (3/2)..................... ……… 0,00034
6. The average product price of sago starch IDR/kg 3.145,00
7. The average wage assessed per month from the value
of the prevailing wage at the study site …. IDR/ok 1.290.000,00
Income and profit:
8 Price of raw materials (sago pith)....…..... IDR/kg 380,80
9 Other input contributions .……………… IDR/kg 55,57
10 Product Value (4 x 6) …………………... IDR/kg 1.887,00
11 a. Added value (10 – 8 – 9 ) ……………. IDR/kg 1.450,63
b. Added Value ratio (11a/10) ………….. % 76,87
12 a. Labor rewards ( 5 x 7 ) …………..…... IDR/kg 438,60
b. Labor share (12/11a) …………………. % 30,24
13 a. Profit ( 11a – 12a ) …………..……….. IDR/kg 1.012,03
b. Profit rate (13a/11a) ………………….. % 69,76
The added value ratio of 76,87% is included in the high added value ratio (> 40%)
which means that every sale of sago starch product of IDR. 10.000,00 gets an added value of
IDR. 7.687,00. %. When compared with the results of the study by Hariance et al, (2017) the
percentage is greater than 72,105% for papaya sauce processing, 65,395% for papaya dodol
processing, and 51,338% the added value ratio of papaya stick processing. Smaller than the
value-added ratio of VCO and its derivatives, the results of study by Suryantini et al, (2011) as
much as 88,45% for processing of VCO into crystal soap, 93,02% for the processing of VCO
become black soap, and 87,13% for the processing of VCO into body lotion. Greater than
kaopi's added value ratio of 53,1% mechanically and 54,2% manually (Saediman al et, (2015).
A labor ratio of 30,24% implies that each achievement of IDR. 10.000,00 added value
is allocated to labor amounted to IDR. 3.024,00, Similarly, a profit ratio of 69,76% implies that
every IDR. 10.000,00 achievement of added value will get a profit amounted to IDR. 6.976,00.
Conclusions and suggestions
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(1)The results of the study indicate that the marketing of sago starch products in Southeast
Sulawesi through two marketing channels, namely from sago processing farmers to retailers,
the last to end consumers amounted to 74,39%. The second marketing channel from farmers
to large traders/wholesalers (UD.Samas Pelabuhan Kendari and UD. Konawe Sinonggi)
amounted to 25,61%.
(2)The percentage of the price received by the sago processing farmers (farmer’s share) of the
first marketing channel (FS = 78,69%) is greater than the farmer's share of the second
marketing channel (FS = 67,24%). This shows that sago marketing in Southeast Sulawesi is
running efficiently, the first marketing channel is more efficient than the second marketing
channel. The profit of the market participant involved in the sago starch product marketing,
the market participant of the second marketing channel, the profit (IDR. .319,15 / kg) is
greater than the profit of market participant of the first marketing channel (IDR. 303,96 /
kg).
(3) The added value of starch products formed amounted to IDR. 1.450,63 / kg with an added
value ratio of 76,87%; the labor share ratio of 30,24%; and a profit ratio of 69,76%.
(4)In order to reduce sago starch products brought out (delivered out of the island), it is
recommended to the government to encourage and facilitate investors to open businesses or
business branches whose raw materials are from sago starch.
(5)To maintain the quality of sago starch products, it is advisable for sago processing farmers
to use clean / hygienic water when squeezing or separating sago starch products from pith
raw materials.
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