Digital-Based Multi-Stakeholder Partnership Model for Improving Marketing Efficiency in Smallholder Sheep Marketing Chain in Indonesia
Keywords:
Marketing Efficiency, Digital-Based Partnership, Sheep Marketing Chain, Smallholder Farmers, Partnership 4.0Abstract
The sheep marketing chain in Indonesia faces severe efficiency challenges characterized by the predominance of smallholder farmers (99%) who possess limited bargaining power. This study analyzes marketing efficiency, maps market structure, and develops a digital-based partnership model to enhance marketing performance. A mixed-methods approach surveyed 126 respondents consisting of farmers, collectors, traders, and retailers in Binjai, North Sumatra. Data were analyzed using Marketing Efficiency Index (MEI), Concentration Ratio (CR4), Herfindahl-Hirschman Index (HHI), and Willingness to Participate Index. Findings reveal critically low marketing efficiency (MEI 42.3%) and farmers' share (68.5%). Market structure exhibits high concentration (CR4 76.3%, HHI 1,847) among few large traders. Three primary inefficiency factors: market information asymmetry (score 4.23), infrastructure limitations (score 4.11), and weak farmer bargaining position (score 4.08). The developed Partnership 4.0 model integrates digital platform infrastructure, participatory governance with 40% farmer representation, and collective bargaining strategies. Strong stakeholder acceptance (WTP Index 73.4%) and projected substantial improvements: MEI from 42.3% to 61.7%, additional income IDR 1.77 million annually per household, with one-month payback period and benefit-cost ratio 11.8:1. These findings underscore necessity for government policy support in digital infrastructure development and multi-stakeholder partnership facilitation as critical enablers for sustainable sheep marketing chain transformation.
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