Lending Model Information System
for Small-Scale Enterprises

VANILLA PLANTATION
(SHARI'A FUNDING PATTERN)

MARKETING ASPECT

MARKETING CHANNEL

Commonly, vanilla marketing lane is not different from other agricultural commodities. In domestic marketing, the producers sell their products to the middlemen or exporter agencies. From these agents that these products reach exporters. As discussed above, the majority of vanilla trading is for export purpose.

In reality, however, the market situation is often affected by people conducting their first transaction process. There have been a number of marketing situations occured in such a case: firstly, farmers sold their products directly to the middlemen or export agencies. In this situation, farmers are in the weak bargaining position since prices are more controlled \by the buyers. Secondly, the case when buyers searched for the farmers.  When this kind of situation occured, farmers are able to obtain prices that are relatively better. This often occured when the commodities have high prices which was proven by the booking perfomed by the buyers with some amount of money given in advanced to the farmers although their vanilla is not harvested yet.

In its lane of marketing, the majority of vanilla from farmers is initially accomodated by middlemen. Based on the survey in Manggarai Regency, there were, at least five big vanilla collector agencies. They are: Nugi Indah Company, Matahari Company, Kilimutu Company, Rayuan Abadi company and Maju Agency. When once vanilly commidity was booming several months ago,  Djasula Wangi Company also established a vanilla processing installation in Borong District, but it is closed down at the present time.

On the other hand, the marketing lane to foreign countries involves more number of parties; namely, exporter agencies, processors, brokers/middlemen, and traders. Such a trading lane can be viewed in Picture 3.5.  Sometimes, the marketing lane can be shorter in this case: farmers sell vanilla to middlemen or large-scale tragers, then these two agents sell the products directly to exporters. This shorter lane is shown in Picture 3.1, the bottom one.