Transaction Cost, Market Channel and Farmer’s Share of Salt Farming

DOI

10.2991/978-2-38476-483-9_52How to use a DOI?

Keywords

Transaction Cost; Market Channel; Farmer’s Share

Abstract

Transaction costs and inefficient market channels lead to a diminished share for farmers, rendering merchants more profitable with a higher percentage than that received by farmers. The purpose of this study is to determine the Salt farming transaction costs, market channel and farmer's share. This qualitative research acquires data through in-depth interviews, observations, and questionnaires to precisely characterize the socio-economic behavior of salt farmers, then conducts a precise and objective data analysis. 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, Central Java. 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%.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Edi Susilo
AU  - Mahmudatus Sa’diyah
AU  - Subaidi Subaidi
PY  - 2025
DA  - 2025/11/17
TI  - Transaction Cost, Market Channel and Farmer’s Share of Salt Farming
BT  - Proceedings of the Jepara International Conference on Education and Social Science 2024 (JIC 2024)
PB  - Atlantis Press
SP  - 413
EP  - 422
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-483-9_52
DO  - 10.2991/978-2-38476-483-9_52
ID  - Susilo2025
ER  -