ORGANIC FOOD MARKET IN JAVA AND BALI: CONSUMER PROFILE AND MARKETING CHANNEL ANALYSIS

The trend of food safety is a sensitive issue in the food industry today. Organic agriculture can be an alternative solution because it has a right balance in terms of the environment, health and benefits for local farmers. However, high prices for organic products and low production scale limit the growth of the domestic organic food market. This research aims to analyze organic food’s consumer behavior, analyze the existing marketing channels and formulate alternative marketing channels for the domestic organic food supply chain. Sampling was carried out by purposive sampling method in which the criteria for respondents were those who know about organic food and live in five big cities in Java and Bali. The marketing channel survey was conducted in Jakarta and West Java by interviewing each actor in the value chain. The results showed that organic food’s market opportunity was quite large, because the respondents were generally aware that organic food was good for health. Organic food consumers are currently included in the middle-class segment, aged 20-50 years, office workers, and income more than IDR 9 million a month. For consumers, certification labels are more important than brands in organic food. On the one hand, organic marketing channels still vary widely. In the B2C market, the use of digital marketing can minimize the financial risks of organic farmers. On the other hand, the B2B market can be optimized through Organic Food Market in Java and Bali: Consumer Profile .., Mukhamad Najib, Ujang Sumarwan, Stevia Septiani | 283 cooperation in hotels, restaurants, cafes, hospitals, and the healthy food processing industry, supported by government policies.


INTRODUCTION
The Indonesian government has long been concerned with organic farming. Organic farming is expected to support national food security since it can provide safe food products for the community. Moreover, organic farming can also encourage increased competitiveness of local farmers (Septiani, Najib & Sumarwan, 2019). In Although organic food has good prospects in the Indonesian market, the actual growth is still relatively low compared to their potential. The market share of organic food is still very small compared to the conventional product.
The high price of organic products and the low production scale limit the domestic organic food market's growth.
Strategic efforts to increase the growth of Indonesia's organic food market and maintain current market growth are needed. However, the organic farming system is still considered riskier by Indonesian farmers, in which at the initial stage the costs required are greater while in terms of productivity levels are lower than conventional farming (Hubeis et al., 2013). Some farmers are also hesitant in adopting an organic farming system because they consider the process too complicated, especially in the certification process, and feel the production costs are too high while the farmers do not have enough capital (Harris et al., 2000;Soltani et al., 2014).
The higher production costs affect the price of organic food at the consumer level. Organic food becomes more expensive than conventional food (Radman, 2005). In general, consumers who are not aware of organic food's benefits often do not want to buy products at high prices (Muzayanah et al., 2015;Wang et al., 2019

Usage Characteristic
The majority of respondents (54.6%) in this study consumed organic food within less than a year (   In Indonesia's organic food market, labels become more important than the brand (Table 6)   The majority of consumers obtain organic food products from the specialty fruit market, followed by supermarkets and hypermarkets. The reason for selecting the intended market is that it provides more fresh organic products with good quality (reliable). Consumers also consider the variety of products and store distance in choosing where to buy organic food (Table 8). For consumers who are sensitive to prices, the perception of fair prices is very important in making purchasing decisions (Rodiger et al., 2016). Fresh products 117 22 Note: Every respondent may choose more than one

Demographic Aspects and
Frequency of Consumption

Channel
The marketing channel for organic products in Jakarta was divided into three marketing channels, as shown in

Figure 2. Bogor Organic Product Marketing Channel
In the organic food value chain in the Bogor area, individual agents are the actors who get the largest proportion of the existing price transmission (see Table 11). Individual agents sell organic agricultural products, only organic pineapples with a one-time quantity of ± 50 pineapples once a week. This agent sells pineapples to buyers directly or delivery orders via an Instagram platform called "Kebun_yursayur" and Whatsapp. The grades taken are levels B and C with the following price details: Cianjur Organic Product Marketing

Channel
The marketing channel for organic products in Cianjur was divided into five types of marketing channels (Figure 4).    Table   12.

Alternative Marketing Channel
The challenges faced by traditional farmers are oversupply and limited market access -causing the bargaining power of organic products to be weak, as seen from the price of organic products, which are the same as non-organic products' prices. In modern farmers who access retail channels and partly in horeca, the suspension of payment can inhibit farmers in the production process. From these findings, alternative marketing channels that can be mapped are as follows ( Figure 6). Therefore, further research is expected to provide a marketing channel mapping in each region based on margin share distribution for each organic food chain actor in every product category.
Likewise, the analysis of each marketing channel's efficiency and effectiveness is also very interesting for further study.