Income Analysis and Marketing Channel Efficiency of Shallot Farming in Simpang Tiga District, Pidie Regency

Abstract

This study aims to analyze the economic dimension of farm income and evaluate the efficiency of shallot (Allium cepa L.) marketing channels in Simpang Tiga District, Pidie Regency. Field data collection was conducted from September to October 2025 across four production centers (Curucok Sagoe, Pulo Raya, Pulo Blang, and Linggo Sagoe villages) involving 81 farmers selected through proportional stratified random sampling based on a defined sampling frame. Intermediary marketing institutions (4 collectors and 8 retailers) were tracked using snowball sampling. Data were analyzed at the respondent level utilizing cost-revenue structures, economic break-even points (BEP), and institutional marketing parameters. The empirical results show that the average net cash income earned by farmers is IDR 238,356,000 per hectare per planting season, supported by a revenue-cost (R/C) ratio of 4.00 and a return on cost of 300%. Based on a contribution-margin formulation, the average production break-even point is 3,302.50 kg/ha, yielding a safety margin of 9,931.50 kg/ha against the average production level of 13,234 kg/ha. Two distinct marketing channels operate in the study area: Channel I (Farmer  Collector  Retailer  Consumer; utilized by 65% of volume) and Channel II (Farmer  Retailer  Consumer; utilized by 35% of volume). Both channels are efficient as their Marketing Efficiency Index (MEI) values fall below the 50% threshold. However, Channel II displays a lower marketing-cost ratio (6.39%) and a higher farmer’s share (80.65%) compared to Channel I (MEI 7.65%; farmer's share 70.59%) due to its localized distribution loop.