Market Channel, Farmer^s Share, and Transaction Cost of Salt Farming in Jepara Regency
Edi Susilo- Mahmudatus Sa^diyah- Subaidi

Universitas islam Nahdlatul Ulama Jepara

Abstract

The inefficiency of the salt market channels is evident in the fact that the extant channels have been more advantageous to traders, boasting a higher percentage than the benefits shared by farmers. The purpose of this study is to determine the Jepara Regency^s salt farming market channel, farmer^s share, and transaction costs. This study is qualitative in nature, using qualitative data as a strong basis to accurately describe the socioeconomic behavior of salt farmers in Jepara Regency. The data is then identified for exact, accurate, and objective analysis. According to the research findings, there are two (two) market pathways connecting manufacturers and industries with salt farmers. Channel 1 is longer than market channel 2- nonetheless, both market channels 1 and 2 offer identical prices to salt farmers in Jepara Regency. The farmer^s share in salt production in Jepara Regency is 40% for low-quality salt, 42% for medium-quality salt, and 43% for high-quality salt. The transaction cost per hectare for each salt season cycle is Rp. 9,510,000, comprising information cost 29.97%, negotiation cost 4.05%, coordination cost 0.53%, transportation cost 18.93%, implementation cost 39.70%, and monitoring cost 6.83%.

Keywords: Market Channel- Farmer^s Share- Transaction Cost- Salt Farming

Topic: Economics