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Analysis of Distribution Pattern of Rice Commodity in East Java Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.7, No.8, 2016 Analysis of Distribution Pattern of Rice Commodity in East Java Susilo Faculty of Economics and Business Universitas Brawijaya Abstract Rice has strategic roles in stabilizing food stability, economic stability, and politic stability of a nation. Food distribution is one of the food stabilities sub-system whose role is very strategic, thus if it cannot be implemented well and smoothly, it will cause inadequate food availibality needed by society.This research attempts to find out and to analyze the rice distribution pattern from surplus regions with rice commodity to the deficit regions located in East Java. The data used in this research were the data obtained from Central Buerau of Statistics of East Java in 2010-2014. The analysis method were descriptive statistics, DLQ (Dinamic Location Quotient), and Gravitation Spatial Analysis. The results confirmed that the central regions of rice in East Java were found in some regencies, such as:Banyuwangi, Mojokerto, Pasuruan, Malang, Madiun, Bojonegoro, Ngawi, Lumajang, Lamongan, and Jember. The rice commodity of Malang was city supplied from Malang and Pasuruan. The number of rice surplus in Malang could only fulfill the needs of rice in Malang city. However, the number of the rice still did not cover yet the deficit of rice in Malang city, so it needed more supplies from Pasuruan. The needs of rice in Kediri city and Batu city were supplied from Mojokerto regency and Pasuruan regency. Finally, in order to fulfill the needs of rice in Madiun city, it could be supplied from Madiun city, and for Surabaya city, it could be supplied from Lamongan regency. Keywords : Distribution, rice, East Java. 1. INTRODUCTION The needs of food, especially rice for people in Indonesia is a daily need of human for supporting human’s lives. It can be understood that the presence of rice as one of primary needs is one of the strategic commodities because the government’s spending for this commodity grows rapidly every year. Food in Indonesia has strategic values with a very wide and complex dimensions. (Mashuri, cited in Sri Widodo, 2002). The availability, distribution equity, and affordability of society’s power is the central isse affecting national economic athorities because food scarcity can trigger the occurance of social and political fluctuation. Based one experience occured in 1966 and 1998, it shoed that the political fluctuation can turn into a very terrible political crisis due to the high prices of food in a short time, and political debate always occurs due to the high price or the low prices of food. Society wants the stability of food supplies and prices, available all the time, equal distribution, and affordable prices (Achmad, 2001). Food stability becomes one of the priorities in national development. There are three main reasons undelying the awarness of all components in a country for the importance of foodstability, such as: (i) access for adequate and nutritious food for every person is one of the fulfillments for human rights; (ii) fadequate food consumption and nutrition is the basis for the establishment of human resource quality; (iii) food stability is the basis for economic stabilization, even for national stability of a country (Arifin, 2004). One of the characteristics of national food stability is the presence of the availability of adequate food in macro aspect. Nevertheless, there are still many region where the society cannot access the adequate food. That condition occurs due to a poverty or inadequate income to get the access of food. On the other hand, the wide of Indonesian territory where the central region of agriculture production, especially rice and corns are in different topography, have the availability of infrastructure to support the sector (production, processing, storage) that are very variable. The harvest time is not the same from one region to other region, and the unsupport climate at planting and harvest time (Arifin, 2001). Food distribution is one of food stability sub-system whose role is very crucial. If it cannot be implemented well and smoothly, the food needed by society will not be fulfilled. The distribution is expected to do effectively, efficiently, and equitably in every location where the food transaction is being conducted for the primary needs of society.The obstacles of food distribution has an impact on scarcity of food and the increase of food price as well as the impact on the low access to the society because the purchasing power of the society will decline (Garside dan Syaifullah, 2013).Food distribution refers to the availability and the supply of food equally all the time in terms of quantity, quality, safety, and variety to fulfill society needs of food. Whereas food access refers to the ability of household to be able to reach or to get the needs of food all the time in terms of quantity, quality, safety, and varietyto support the effective, priductive, and health life.Food problems are the condition of food surplus, food deficit, and or household inability to fulfill the needs of food. The presence of poor people, food prone region, inequatable of food production among region and all the time, and different human resources 159 Journal of Economics and Sustainable Development www.iiste.org ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.7, No.8, 2016 in every region will affect the distribution and the supply of food. Finally, this condition triggers food access fro every person in household get lower if the the food availability is limited, unavailability markets, limited transportations, low income, limited education, high unemployement, and inadequate culture.Thus, the role of affordable and equitable food distribution all the time will affect the increase of food access for every household to fulfill food adequacy (Garside and Syaifullah, 2013). Therefore, food stability is produced by a system of food stability consisiting of three sub-system: (1) food availability in terms of adequate quantity and types for all societies, (2) smooth and equitable food distribution , and (3) affordable food for every person to fulfill adequate nutrition and health rules.The problems when reaching food stability is about imbalance between the availability and affordability of food. The problems are caused by the production of various types of food which cannot be produced in all region and in every time it is needed.The problems of production which only happen in certain region of Indonesia and in certain time have caused the availaibility concentration of food in production centre and in harvest time. Referring to the food distribution for society and the obstacles faced by spciety, the researcher conducted a research entitled, “Analysis of Distribution Pattern of Rice Commodity in East Java”. As described before, East Java is one of the region which has the biggest potency of food production in Indonesia. East Java is able to supply more than 17% of national rice and the needs of rice on 15 provinces through National State Logistics Agency‘move’ (Central Buerau of Statistics, 2012). The increase of food demand in East Java has grown along with the growt of population pushed the occurance of food production acceleration in terms of the actualization of price and food stabilization, so the food stability is highly related to the government’s ability to maintain the stabilization of food availability supported by the fulfillment of the supporting access. 2. LITERATURE REVIEW Definition of Market/Distribution Food is a vital and strategic commodity since it refers to the primary neeeds firstly needed by every human. Thus, the fulfillment of the needs of food cannot be suspended. Meanwhile, food commodity or agriculture products has specific characteristics because the production is affected by ‘season’ factor. Marketing system is the crucial part of goods chain since the goods are produced to consumers. It can determine market efficiency in a trading system, including food. The marketing causes high cost which will affect not only the decrease of producers surplus, but also the consumers’ burden. In the food marketing, there are many variaties in terms of agents or the long market chains, from the short chain of the simple market to the long ones. Generally, food marketing pattern or agriculture products always change and develop as the growth and the development of production and consumption structure. The marketing pattern of agriculture products also has closely relations with economic development because it is one of the overall economic sub-system.Efficient marketing system is highly needed in goods market of agriculture products in order to increase additional values and producers or consumers surplus. Kim (1986) noted that the base differences in marketing system between developed countries and developing countries lie on the supply system of agriculture, wage labor, level of consumers income, level of urbanization, cultural background (including eating habits), and so on. Kotler (2002) said, “Marketing is a social process in which the individual or grop get what they need and what they want by making, offering, and freely interchanging valuable products to other parties. The products are made to satisfy human needs or desire, so there is a process to get the products they want or need as the efforst from producers to consumers.”The concept of marketing stands on four pillars: target markets, customers needs, integrated marketing, and income ability. Marketing is one of business functions producing acceptability for the producers or the consumers.Said dan Intan (2004)defined marketing as a number of business activity aimed to give the satisfaction from the goods or services that are exchanged to the consumers or the users in agriculture, whether in the form of agriculture input or products.
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