The Market Structure of Potato from Batu in Malang Raya
Keywords:
Herfindahl Hirschman Index, Market Share, Concentration Ratio, Market Structure
Abstract
Potato production in Batu City, East Java has increased but is not balance with the price stability received by farmers, due to market competition. This study purposed to analyze the structure of potato commodity market from Batu in Malang Raya (area includes Kota Malang, Kabupaten Malang, and Kota Batu). The sampling methods used were purposive sampling for determining potato farmers, and snowball sampling to determine traders along the marketing channel to follow the commodity flow of potato. The analysis of market structure includes market share, Concentration Ratio (CR4), and Herfindahl Hirchman Index. The results show that the market structure of potato commodities from Batu in Malang Raya is oligopoly market, which was identified from the market share, concentration ratio (CR) and Herfindahl Hirschman Index. The oligopoly market is known because the obtained CR4 value is between 20% - 80% and the value of IHH > 0.1. In this market structure farmers have a low bargaining position, whose position is as price taker. The recommendation given to increase the bargaining position of farmers is to shorten the marketing channels, for example by guiding farmers to do online marketing, so that they can have direct access to the end consumer. Further research needs to be done is analyzing the complete market structure of potato by using structure-conduct-performance approach and analysis of potato digital marketing.
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References
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Devi, P., Harsoyo, H. & Subejo, S., 2016. Keefektifan Lembaga Pasar Lelang Cabai Merah Di Kecamatan Panjatan Kabupaten Kulon Progo. Agro Ekonomi, 26(2), pp.139–149. Available at: https://journal.ugm.ac.id/jae/article/view/17273.
Dewi, N., Yusri, J. & Saputra, A.J., 2018. Analisis Struktur Perilaku dan Kinerja Pasar (Structure, Conduct and Market Performan) Komoditi Padi di Desa Bunga Raya dan Desa Kemuning Muda Kecamatan Bunga Raya Kabupaten Siak. Jurnal Agribisnis, 19(1), pp.42–56. Available at: http://journal.unilak.ac.id/index.php/agr/article/view/897.
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Laibuni, N. & Omiti, J., 2014. Market Structure and Price: An empirical analysis of Irish potato markets in Kenya. International Journal of Research in Marketing, 2(3), pp.47–50. Available at: https://www.mendeley.com/catalogue/f2621983-6c11-31cc-af9e-3c6d44de6b4e/ Market.
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Napasintuwong, O., 2020. Thailand’s maize seed market structure, conduct, performance. Future of Food: Journal on Food, Agriculture and Society, 8(2 (June)), pp.1–15. Available at: https://www.mendeley.com/catalogue/38d34a66-b426-3577-991f-64027fdb5614/.
Nzima, W.M., Dzanja, J. & Kamwana, B., 2014. Structure, Conduct and Performance of Groundnuts Markets in Northern and Central Malawi: Case Studies of Mzimba and Kasungu Districts. International Journal of Business and Social Science, 5(6).
Pujiharto, P. & Wahyuni, S., 2020. Potato Trading Based on Structure Conduct Performance (SCP) in the Centre of Vegetable Production at Central Java Indonesia. Research in World Economy, 11(1 (Special Issue)), pp.171–179. Available at: https://www.mendeley.com/catalogue/7f7f5fd8-ec7b-377b-9dad-f644ae76cfbd/.
Raha, S.K. et al., 2013. Structure, Conduct and Performance of the Rice Market and the Impact of Technological Changes in Milling, Mymensingh: Institute of Agribusiness and Development Studies (IADS) Bangladesh Agricultural University.
Ramlall, I., 2014. Gauging the impact of climate change on food crops production in Mauritius An econometric approach. International Journal of Climate Change Strategies and Management, 6(3), pp.332–355.
Relawati, R. et al., 2018. The Structure-Conduct-Performance of Indonesian Apple Fruit Market. In Advance in Engineering Research, 4th International Converence on Food and Agriculture Resources (Fanres 2018). pp. 239–244.
Rizkyanti, A., 2010. Analisis Struktur Pasar Industri Karet dan Barang Karet Periode Tahun 2009. Media Ekonomi, 18(2), pp.1–18. Available at: http://www.trijurnal.lemlit.trisakti.ac.id/index.php/medek/article/view/54/52.
Sayaka, B., 2006. Market structure of the corn seed industry in East Java. Journal Agro Ekonomi, 24(2), pp.133–156.
Shaik, S. et al., 2009. Market Structure Conduct Performance Hypothesis Revisited Using Stochastic Frontier Efficiency Analysis. Agribusiness & Applied Economics 649, 48(September).
Sinaga, V.R., Fariyanti, A. & Tinaprilla, N., 2014. Analisis Struktur, Perilaku, dan Kinerja Pemasaran Kentang Granola di Kecamatan Pangalengan, Kabupaten Bandung, Jawa Barat. Forum Agribisnis, 4(2), pp.101–120. Available at: https://www.mendeley.com/catalogue/afdaba14-79da-3ef6-ad0b-25a9e0b9c27e/.
Sipayung, B.P. & Ginting, R., 2019. Analisis Faktor Penawaran Kentang di Provinsi Sumatera Utara (Periode 2003-2012). Agrimor, 4(1), pp.7–8. Available at: https://savana-cendana.id/index.php/AG/article/view/692/290.
Published
2021-07-31
How to Cite
Relawati, R., & Ningsih, G. (2021). The Market Structure of Potato from Batu in Malang Raya. AGRIMOR, 6(3), 114-120. https://doi.org/https://doi.org/10.32938/ag.v6i3.1376
Section
Original research article
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