The choice of a marketing channel to benefit corn producer’s welfare in Indonesia

This study aims to examine the marketing channel optionsavailable for corn produc- ers in South Sulawesi, the production center in Indonesia, as well as impact of such a choice on their income level. The target group was corn producers and corn traders. The total sample comprised 150 people, consisting of 120 corn producers and 30 corn intermediary traders within South Sulawesi Province. The results showed that three marketing channels accessed by producers are zero-level, one-level, and two-level channels. The net profit margin obtained by intermediary traders per kg is different by types for each marketing channel due to different marketing activities leading to dif- ferent costs spent. The most efficient marketing channel is the zero-level channel that conducts direct selling to breeders. It followed by the one-level channel (from farmers to collectors and consumers). Finally, the two-level channel (from producers to mer- chant traders) showed the lowest efficiency. It should be mentioned that the zero-level channel offers a slight price increase for producers compared to other channels. Its consumers only buy limited number of products so that it does not have a wide impact on producer’s welfare. The study also found high input costs spent to cultivate corn due to land rent, fertilizers, and pesticides.