Analysis of marketing distribution efficiency of small pelagic fish on Ambon Island with path analysis

This study aims to develop a path analysis of marketing distribution efficiency of small pelagic fish in the islands, particularly on Ambon Island, and investigate its most significant determinant. Producer price, consumer price, marketing cost and marketing margin are examined as determinants of marketing efficiency. An efficient marketing system provides benefits for business actors involved in the production process, so that their products can reach target consumers. A longer marketing chain results in higher marketing costs, which ultimately determines the end consumer price. The data was analysed in a descriptive-quantitative manner, conducting a supply chain analysis and a path analysis to determine the marketing margin and marketing efficiency of small pelagic fish marketing distribution in Ambon City. The results show that all distribution channels are efficient because the calculated efficiency value is <30%. First path analysis producer prices (X1) have no significant effect on marketing margin (Y), consumer prices (X2) have a positive and significant effect on marketing margins (X3); and marketing costs have a significant effect on marketing margin (Y). The second equation, all variables (X1, X2, and X3) have a significant effect on marketing distribution efficiency (Z) through marketing margin (Y). It can be concluded that marketing costs and marketing margins greatly influence the efficiency of marketing distribution. These findings imply that to gain profits, small pelagic fish fishermen (as producers) must estimate marketing costs accurately.