Association-based rubber trading system as an agricultural development innovation

Area of Science:

• Agricultural Economics
• Supply Chain Management
• Rural Development

Background:

• Rubber production is vital in Kuantan Singingi Regency, yet farmers face challenges with unilateral pricing by traders.
• The current marketing system limits the economic welfare derived from agricultural commodities.
• A need exists for innovative agricultural institutions to address trading system inefficiencies.

Purpose of the Study:

• To develop an association-based rubber trading system as an agricultural development innovation.
• To enhance the effectiveness and efficiency of rubber marketing in Kuantan Singingi Regency.
• To improve the economic welfare of rubber farmers through better market integration.

Main Methods:

• Qualitative research approach utilizing descriptive analysis.
• Data collection through in-depth interviews, observation, and documentation.
• Snowball sampling to select nine key informants for triangulation.

Main Results:

• The Kuantan Singingi Rubber Farmers Association (APKARKUSI) effectively distributes rubber to Crumb Rubber Factories.
• APKARKUSI enhances farmers' bargaining power and stabilizes prices at the farmer level.
• The association ensures quality standards and provides transparent price information, increasing farmer income.

Conclusions:

• An association-based trading system, exemplified by APKARKUSI, is crucial for agricultural development.
• Effective agricultural institutions can overcome marketing challenges and improve farmer livelihoods.
• The developed system demonstrates a viable model for equitable rubber trading and farmer empowerment.