Long Distribution Chains Cut Cabbage Farmers’ Profits in Buru Regency

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FORMOSA NEWS

Lengthy distribution chains in the cabbage (Brassica oleracea) market significantly reduce the income of local farmers in Debowae Village, Waelata District, Buru Regency, Maluku. A 2026 study conducted by researcher Yuni Enjel Waemesse alongside Dr. Ir. L. O. Kakisina, M.Si., and J. M. Luhukay, SP, M.Sc. from Pattimura University reveals that while the existing distribution channels operate efficiently, farmers receive at most 40 percent of the final retail price paid by consumers. These findings highlight crucial structural issues in agricultural supply chains across eastern Indonesia and underscore the need for institutional reforms to improve the bargaining power and livelihoods of smallholder growers.

Buru Regency is a primary horticultural hub in Maluku Province, with Debowae Village contributing approximately 630 tonnes of cabbage annually across 35 hectares of harvested land. Despite this strong production capacity, smallholders face ongoing commercial hurdles. Local farmer groups currently lack the institutional capacity to act as effective marketing bodies, leaving individual growers with limited access to real-time market price data. Consequently, farmers depend heavily on intermediaries, resulting in large price markups between farm-gate and consumer levels due to accumulated transport costs and multi-tiered profit margins.

To evaluate these marketing dynamics, the Pattimura University research team conducted a descriptive quantitative investigation between April and June 2025 in Debowae Village. Given the small local population of 15 active cabbage farmers, the researchers used a census approach (saturated sampling). Using snowball tracing, the study also surveyed 4 village collectors and 3 retail traders, totaling 22 respondents. Primary data gathered through structured interviews and questionnaires were evaluated using standard formulas for marketing margins, farmer's share, and operational marketing efficiency.

The statistical analysis identified three distinct distribution pathways for cabbage grown in Debowae Village:

• Three Primary Supply Chains: Channel I consists of Farmer $\rightarrow$ Retail Trader $\rightarrow$ Consumer. Channel II follows Farmer $\rightarrow$ Village Collector $\rightarrow$ Retail Trader $\rightarrow$ Consumer. Channel III represents the longest route: Farmer $\rightarrow$ Village Collector $\rightarrow$ City Collector (at Mardika Market in Ambon) $\rightarrow$ Retail Trader $\rightarrow$ Consumer.
• Widening Price Spread: Farmers receive a fixed farm-gate price of Rp10,000 per kilogram across all three channels. However, retail prices for end consumers vary significantly—Rp25,000/kg in Channel I, Rp35,000/kg in Channel II, and Rp40,000/kg in Channel III—generating total marketing margins of Rp15,000/kg, Rp25,000/kg, and Rp30,000/kg, respectively.
• Declining Farmer Income Share: Channel I yields the highest farmer's share at 40.00% of the final consumer price. This share drops to 28.57% in Channel II and falls to just 25.00% in Channel III. As additional intermediaries enter the supply chain, the relative income proportion returning to the grower decreases.
• Operational Cost Control: All three channels qualify as operationally efficient under standard economic thresholds ($EP < 50\%$), recording index values of 2.29% for Channel I, 2.11% for Channel II, and 2.18% for Channel III. Channel II recorded the highest operational efficiency due to bulk transport handled by village collectors.

These findings carry important implications for agricultural policy and local supply chain management. High operational efficiency across distribution channels does not necessarily yield equitable economic outcomes for primary producers. Regional agricultural departments and local authorities can support smallholders by strengthening farmer cooperatives, establishing collective bargaining mechanisms, and building transparent market information systems. Furthermore, expanding direct farmer-to-consumer infrastructure and institutional supply contracts can shorten distribution chains, ensuring a fairer share of market value remains with rural growers.

As demonstrated by Yuni Enjel Waemesse and the Pattimura University research team, shortening distribution routes is a direct pathway toward improving agricultural livelihoods. Their research underscores that targeted structural interventions are necessary to ensure smallholder growers in rural communities receive equitable economic returns for their agricultural output.

Author Profile

Yuni Enjel Waemesse, S.P.

Researcher and graduate of the Agribusiness Study Program, Department of Agricultural Social Economics, Faculty of Agriculture, Pattimura University, Ambon, Indonesia. Her expertise focuses on agribusiness marketing, supply chain efficiency, and horticultural economics. Corresponding email: yuniwaemesse@gmail.com.

Article Source

Journal Article Title: Marketing Efficiency Analysis of Cabbage (Brassica oleracea) in Debowae Village, Waelata District, Buru Regency
Journal Name: International Journal of Asian Business and Management (IJABM)
Publication Year: 2026
Volume & Issue: Vol. 5, No. 4, pp. 339–352
DOI: https://doi.org/10.55927/ijabm.v5i4.26

Official URL: https://journalijabm.my.id/index.php/ijabm/index