MARKETING MARGIN ANALYSIS AND ADDED VALUE OF PATCHOULI DISTILLERY IN PULE DISTRICT, TRENGGALEK REGENCY

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MARKETING MARGIN ANALYSIS AND ADDED VALUE OF PATCHOULI DISTILLERY IN PULE DISTRICT, TRENGGALEK REGENCY 

The agricultural sector in developing countries has the potential to produce four types of agricultural contributions. The first contribution of agriculture is the contribution of production, where the development of the non-agricultural sector is very dependent on the agricultural sector, especially in providing the needs of raw materials needed for the industrial sector.

The second contribution is market contribution, this is because the agricultural sector produces products in the form of commodities and sells to buy commodities in the non-agricultural sector. 

The third contribution is the contribution of production factors, the role of the agricultural sector is usually seen from the formation of capital by the industrial sector derived from the agricultural sector. 

The fourth contribution is the contribution in creating state foreign exchange, because the agricultural sector produces commodities that can be exported and can generate foreign exchange for the country (Soekartawi, 1995). 

The agricultural sector in agribusiness insights with its role in the national economy provides several things that show advantages that are worth considering in national development. 

These advantages include seeing the high added value of agro-industry. With this contribution in the national economy, the agribusiness sector is increasingly encouraged regarding the development of existing technology.

The development of this technology is because there are still problems faced by agro-industry, namely, among others: 

The provision of regular raw materials in the form of adequate quantity and quality, as well as competitive prices is a difficult problem for agro-industry. 

Moreover, these raw materials must be purchased in the free market from small farmers whose locations are scattered. Secondly, marketing is often a problem because the products produced have competitors and because of the lack of market information.

The development of agro-industry located in the area of the production center or in the area of production of raw materials itself needs attention. Since the development of agro-industry there is a linkage with the objectives of the development of rural areas for the involvement of rural human resources. 

So that it can introduce additional activities or treatments for commodities after they are harvested, which can later get added value from the commodities produced.

The development of agro-industry benefits not only consumers but also farmers. In general, the development of agro-industry will increase agricultural production. Efforts to increase agricultural production not only lie in increasing the yield per hectare with five farming businesses, but also through the processing industry.

By continuing to give high priority to agricultural development, the role of the government is very important. 

In government politics, the Indonesian economy between the agricultural sector and the industrial sector has a relationship and mutual support. 

For the industrial sector, it produces basic needs that support the agricultural sector in processing available natural resources. 

It appears that the role of agriculture is still dominant and increasingly evident, that the economic sector is influenced by the agricultural sector. 

Although the number of farming businesses at this time is decreasing, it is important to maintain and increase production by converting agricultural raw materials into processed products so that agricultural commodities have high added value.

For now, Indonesia is the largest patchouli oil exporting country in the world. Not only in quantity, but the quality of Indonesian patchouli oil is among the best in the world and until now has not been imitated (synthetic). 

Patchouli oil is widely used as a fixative in the perfume industry, so that the fragrance of perfume does not quickly evaporate. In addition, the aroma of patchouli oil is also very distinctive, so it is in great demand among consumers in various parts of the world. Apart from being a perfume, Patchouli oil is also widely in the soap, hair tonic, and aroma therapy industries.   

Patchouli plant (Pogostemon cablin Benth) is an essential oil-producing plant that is a source of foreign exchange for the country. Indonesia is currently the world's patchouli oil producer with a contribution of 90%.For this reason, it is necessary to maintain market opportunities by increasing production through appropriate cultivation techniques, improving the quality of patchouli oil and developing patchouli planting to areas that have fairly bright prospects in terms of the level of land suitability and climate. In terms of land, climate and marketing, the Lampung area is one of the areas that has quite bright prospects for the development of patchouli plants. Patchouli plant (Pogostemon cablin Benth) is one of the essential oil-producing plants known as patchouly oil ("patchouly oil").

Patchouli plants have long been thriving in Indonesia with its main areas being Aceh, North Sumatra, West Sumatra, and Bengkulu. In the past eight years, patchouli tan'man has begun to be widely cultivated by farmers. The increase in the area of patchouli plants, shows that patchouli plants are quite in demand by farmers to be cultivated in this area. However, to get optimal results, it is necessary to pay attention to several factors such as climate, land, and market factors.

Patchouli oil in Indonesia is very popular in the American and European markets, mainly used for raw materials for the perfume making industry (as a odor binder or perfume fixativee), cosmetics, and others. The main component of Patchouli oil (obtained from the distillation of Patchouli leaves) is pachoully alcohol (45 – 50%), as the main characteristic. Other important chemical industry materials include patchoully campor, cadinene, benzaldehyde, eugenol, and cinnamic aldehyde. Patchouli oil can be used for anntiseptic, anti-fungal, anti-acne, eczema and cracked skin drugs, as well as dandruff. It can also reduce inflammation. It can even help reduce anxiety and depression, or help insomniacs (insomnia disorder). This oil is often used for aroma therapy ingredients. Also aphrodisiac: increases sexual arousal.

Apart from being a non-oil and gas export commodity that is widely needed in the world, patchouli is also widely used in various industries in the country, so the demand, both from within and outside the country is increasing from year to year. In trade, this commodity is seen as quite strategic. As evidenced during the economic shock that hit Indonesia, this commodity still exists. In fact, when the monetary crisis caused most people to experience economic difficulties, farmers and patchouli producers gained very abundant profits.

Until now, patchouli is still limited to being cultivated in certain areas, so that development opportunities and business prospects are very wide open considering that market demand continues to increase from year to year. Patchouli is one of the prides of Indonesia, because the quality of Indonesian patchouli is the best in the world and there are many enthusiasts. Unfortunately, until now patchouli has not been cultivated and developed optimally, although market demand, both from within and outside the country is quite high. So, why not try to develop this fairly prospective commodity from now on?

Although the prospects for patchouli are quite bright, both for the domestic and foreign markets, there are not a few problems encountered, such as low productivity, varied quality standards, non-continuous supply of materials, and fluctuating prices. One of the triggers for the emergence of various problems is that until now patchouli is still cultivated by farmers traditionally and on a small scale. They strive that patchouli generally has limited capital and technology so that the quality of the oil produced is also very diverse. This results in unstable prices of the products produced, as they often do not meet the quality standards desired by the market.

Currently, the Essential Oil (Patchouli) industry is increasingly advanced and growing rapidly as evidenced by the production results produced from patchouli plants that have been refined into Essential oils used as fragrances and cosmetics. With this development, the essential oil (patchouli) industry is one of the essential oil (patchouli) industries in the East Java region, and which is a competitor to the industry both in the Trenggalek area and outside the region.

Essential Oil made from patchouli is packaged in a jurigen-shaped container, each with a capacity, about 10 kg even up to the one with a capacity of 20 kg offered has several sizes where the choice of oil type offered is a greenish-yellow one for the type of oil distilled from a kettle made of stainless using an evaporation system,  and a slightly browned type of oil from a kettle made of iron using a boiled and steamed system.

Therefore, new players who have a fairly strong capital, knowledge, and skills that are good will be very helpful in the development of patchouli in Indonesia. From the background description above, this study is entitled "Analysis of Patchouli Marketing Margins and Added Value of Patchouli Distillation".

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