The impact of consignment-based marketing through middlemen on the economic sustainability of farmers in Pawenang Village, Nagrak Subdistrict, Sukabumi Regency

Tri Sanatha Wahyu Akbar; Riani Winarni; Galih Raspati; Mulfi Sandi Yuda; Bayu Prastiyo Nurdiana

doi:10.55942/pssj.v5i5.511

Authors

Tri Sanatha Wahyu Akbar Universitas Sains Indonesia https://orcid.org/0009-0004-9391-8335
Riani Winarni Universitas Sains Indonesia https://orcid.org/0009-0007-3895-5821
Galih Raspati Universitas Sains Indonesia https://orcid.org/0000-0003-2056-5829
Mulfi Sandi Yuda University of Sains Indonesia https://orcid.org/0009-0005-3223-6493
Bayu Prastiyo N Universitas Sains Indonesia

DOI:

https://doi.org/10.55942/pssj.v5i5.511

Keywords:

Consignment marketing system, middlemen, economic sustainability of farmers, Pawenang village, alternative marketing solutions

Abstract

The consignment-based marketing system through middlemen (known locally as tengkulak) has long been practiced by farmers in Nagrak District, particularly in Pawenang Village. This system offers certain advantages, such as lower costs, operational simplicity, no need for technological skills, and delegation of distribution responsibilities to middlemen. However, the dominance of middlemen in the agricultural marketing chain leads to a high level of farmer dependency. Middlemen control nearly the entire market, leaving farmers with little to no bargaining power when they sell the middlemen take 10% of the final selling price. Limited market access also prevents farmers from tracking price fluctuations, thus making them vulnerable to price manipulation. Moreover, farmers are charged with the distribution costs. This situation negatively affects farmers’ welfare, with most living under economic hardship, even though agriculture is their primary source of income. This study aims to analyze the impact of the consignment marketing system through middlemen on the economic sustainability of farmers in Pawenang Village. The findings are expected to provide insights into how this system affects farmer independence and offer alternative marketing solutions to reduce dependence on middlemen, thereby improving the competitiveness and sustainability of agricultural enterprises.

Author Biographies

Tri Sanatha Wahyu Akbar, Universitas Sains Indonesia

Tri Sanatha Wahyu Akbar is a permanent lecturer in the Management Study Program at the University of Sains Indonesia Bekasi. Graduated with a Master of Management degree from Widyatama University in 2018, concentrating in marketing management. Interested in marketing management. My research focuses on marketing management research. Actively teaches courses related to marketing management. Winner of the 2025 PDP grant from the Ministry of Education and Technology.

Riani Winarni, Universitas Sains Indonesia

Riani Winarni is a full-time lecturer in the Management Study Program at the Indonesian Science University (Universitas Sains Indonesia), Bekasi. She graduated with a Master of Management degree from Widyatama University in 2018, concentrating in financial management. She has interests in social and humanities management. She has worked as a finance supervisor at the Prodia Clinic for a long time. Her research focuses on management research. She is also a recipient of the 2025 PDP research grant from the Ministry of Education and Technology.

Galih Raspati, Universitas Sains Indonesia

Galih Raspati completed his undergraduate education (Bachelor's degree) at Universitas Pasundan Bandung in 1998, earning a degree in Political Science with a focus on International Relations. He then pursued a Master's degree in Management at STIE IPWI Jakarta, graduating in 2013. Currently, he teaches at Universitas Sains Indonesia in the Management program, and his research interests include Human Resource Management and the development of Micro, Small, and Medium Enterprises (MSMEs).

Mulfi Sandi Yuda, University of Sains Indonesia

He completed his undergraduate degree in Accounting at Linggabuana University in 2020. He then pursued his Master's degree in Administrative Science at Muhammadiyah University of Sukabumi, graduating in 2023, currently serves as a full-time lecturer at the University of Sains Indonesia in the Business Administration Study Program and actively teaches courses related to marketing management and is involved in research and scientific publications.

Bayu Prastiyo N, Universitas Sains Indonesia

Bayu Prastiyo N is a lecturer in the Management Program at Universitas Sains Indonesia, Bekasi. His academic and research interests focus on management and business development, with active involvement in collaborative research projects and academic publications.

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