From Producers to Consumers: An Analysis of Distribution Channels and Added Value of Sago Products in East Java, Indonesia

Abstract

 The distribution channel is vital in the sago business because it connects producers and consumers. In this paper, we identify the distribution channels of sago products and their functional classification. We found that the distribution of sago products, such as dried sago and roasted sago (sagu kotak), in East Java is classified as indirect distribution, which relies on intermediaries. Intermediaries such as distributors, wholesale agents, and retailers are primarily actors that directly coordinate buying, selling, storing, and distributing sago products from Riau and Maluku to consumers in East Java. In addition, our calculation showed that sago pudding has a highly profitable value-added process as compared to that of roasted sago.