OPTIMIZING THE PRICE AND DISTRIBUTION OF RED PEPPER TO IMPROVE THE WELFARE OF FARMERS

Abstract

Optimization of red pepper prices is an important step to improve the welfare of
farmers. This can be achieved with a strategy that includes price
stabilization.increasing the bargaining power of chili sales distribution, especially
red pepper, involves the flow from farmers to the final consumer. This process
consists of various distribution channels that affect the price, efficiency and well-
being of farmers. Efficient distribution of red pepper is the key to improving the
welfare of farmers. The right strategy can ensure farmers get a decent price, by
minimizing unfair practices on middlemen and expanding market access. The
results of price optimization seen from fluctuations in red pepper prices farmers are
often stuck selling chili at low prices when the harvest is abundant, while
consumers face high prices when production decreases. A price stabilization policy
is needed through price buffer mechanisms such as the formation of reserve stocks
by the government or cooperatives. The influence of unstable prices affects the
decision of farmers to plant peppers in the next season. Farmers tend to switch to
other commodities if chili prices are often low. Product distribution such as
transportation costs and post-harvest losses are high, especially for areas far from
production centers. A Marketplace or farm app helps farmers sell chili peppers
directly to consumers or retail. The distribution chain becomes shorter, so farmers
receive better prices. Price stability increases farmers ' income by optimizing prices
through price buffer policies or agricultural contracts to reduce the impact of
fluctuations in red pepper prices. This provides certainty of income for
farmers,thereby improving their welfare. Cutting the number of intermediaries in the
distribution of red pepper through cooperatives, marketplaces, or direct
partnerships with modern markets has proven to provide higher selling prices to
farmers. It also improves marketing efficiency and lowers logistics costs. The
provision of efficient transportation cold storage facilities, and good road
infrastructure help reduce losses during distribution.