Pricing Models and Value Distribution in Agribusiness: A Managerial Investigation of Farmer Marginalization and Its Implications for Social Justice

Abstract

Indonesia, as an agrarian country, relies heavily on the agricultural sector for food security and national economic stability. However, in reality, small-scale farmers often find themselves in weak bargaining positions within agribusiness value chains. The selling price of agricultural products is determined by middlemen and market forces, excluding farmers from fair price-setting processes. This condition reveals economic inequality that contradicts the social justice values enshrined in Pancasila. This study employs a qualitative descriptive method, combining interviews and literature reviews to analyze the factors contributing to farmers' inability to determine their own selling prices. Findings indicate that limited access to price information, capital, and production resources further weakens farmers' bargaining positions. As a solution, Pancasila-based approaches, such as strengthening farmer cooperatives, implementing minimum price policies, and improving price information transparency, need to be adopted to create a fairer and more sustainable agribusiness system.