Marketing Efficiency of Beef Cattle at the Tirtasari Livestock Market, Toili Sub-district, Banggai Regency

Abstract

Marketing efficiency is one of the key indicators in assessing the performance of a marketing system. Marketing is considered efficient if the costs incurred during the distribution process are commensurate with the value added generated, the marketing margin is not excessive, and the farmer’s share of the price is relatively high. The objective of this study is to analyse the marketing channels, marketing margins, the farmer’s share, and the level of marketing efficiency for beef cattle at Tirtasari Livestock Market, Toili Sub-district, Banggai Regency. The research method employed was a survey. The data used comprised both primary and secondary data. The sample was selected using accidental sampling. A total of 30 respondents were included in this study, comprising 15 small-scale traders and 15 large-scale traders. The data analysis carried out included descriptive analysis, marketing margins, the farmer’s share, and marketing efficiency. The results of the study indicate that the marketing of beef cattle at Tirtasari Livestock Market involves three channel patterns, namely Channel I (Farmer–Small-scale Trader–Wholesaler–Consumer), Channel II (Farmer–Wholesaler–Consumer), and Channel III (Farmer–Small-scale Trader–Consumer). The marketing margin obtained in Channel I was Rp1,354,093 per head, in Channel II Rp893,458 per head, and in Channel III Rp988,125 per head. The farmer’s share stood at 88.4 per cent, 90.7 per cent and 91.1 per cent respectively. The results of the marketing efficiency analysis show that Channel I has an efficiency value of 1.58 per cent for small traders and 2.34 per cent for large traders, Channel II at 3.25 per cent, and Channel III at 1.24 per cent. All three marketing channels are considered efficient as they have efficiency values of less than 5 per cent. Channel III is the most efficient marketing channel, with the lowest efficiency value and the highest farmer share.