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Marketing Margin Analysis of Arabica Coffee in East Timor
Thesis Abstract:
The objectives of the research were to (1) understand the marketing channel and marketing institution in concerned Arabica coffee product channeling from producer to consumer in Timor-Leste, (2) calculate the amount of coffee marketing margin in each marketing channel, and (3) understand the factors that affect the amount of Arabica coffee marketing margin in Timor-Leste.
The study employed descriptive analysis. A total of 126 farmers, 11 collectors, two processors, and one exporting firm were chosen in random. Primary and secondary data were collected.
Results showed that there were three types of marketing channel categorized in permanent and transient channels. At the first marketing channel, the amount of margin was USD 0.098/kg while USD 1.15/kg in the second marketing channel. Farmer share of coffee price was 29.41 percent in channel I, 41.18 percent in channel II, and 35.25 percent in channel III.
Regression analysis indicated that sales volume and farm level price had negative impact to marketing margin value. Distance of the closest market and marketing channel, on the other hand, had positive impact.