Marketing Channels of Chili in Central Java: Players, Levels, and Segmentations

Abstract

Chili production is an important commodity in Indonesian, and the marketing issues frequently disrupt the economy.  This paper aims to analyse the distribution channel of chili and formulate the suitable policy to overcome the marketing problems. The study employed a qualitative approach. A market survey was qualitatively conducted at producer, intermediary, wholesaler and retailer levels. The results were descriptively presented using table and figures. This result shows that the marketing channel of chili in Indonesia was complicated and lengthy. Many players were starting at the village level to the provincial level. Segmented markets were based on the types of chili, which were categorized as local and hybrid cultivars. Farmers selected the marketing channels because of business circumstance and their farm location. Distance and gentleman agreement with traders limited farmers to select the marketing channel.