Market Structure and Price Transmission of Eggs Commodity

Abdul Aziz Ahmad(1), Agus Arifin(2), Boon Cheong Chew(3),


(1) Jenderal Soedirman University,
(2) Jenderal Soedirman University,
(3) Universiti Teknikal Malaysia Melaka,

Abstract

Purposes of this research are to determine some characteristics of distribution channel, market structure, and price maker transmission in purebred chicken egg commodity in Banyumas District, Central Java Province. Primary data applied on this research is from all channel distribution levels; from producers to final consumers. Meanwhile secondary data is collected from government official sources, such as BPS-Statistic of Banyumas Disrict, Banyumas Department of Industry, Trading and Cooperation, and previous researches which has been made by researcher team. Sample determining is directed by proportional random sampling methods. Some measurements are applied to this research, including to; Herfindahl Index (HI), Concentration Ratio (CF), and Minimum Efficiency Scale (MES) to investigate market structure; and Asymmetric Price Transmission (APT) to determine price transmission mechanism model. This research finds that (1) the distribution channel of egg commodity is spitted to different channel, the first channel: egg producer – retail traders – final consumers, and second channel: egg producers – whole seller – retail traders – final consumers; (2) market structure which is created to this farming specific commodity is perfect market; (3) price transmission mechanism analysis statistically shows that there is almost no existence of dominant power in price formation.

Keywords

purebred chicken egg, distribution channel, market structure, perfect competition, asymmetric price transmission.

Full Text:

PDF

References

Ahmad, A.A., A. Arifin dan R Priyono. (2011). Pemetaan Distribusi Komoditas Laporan Hasil Penelitian Penyumbang Inflasi Terbesar di Jawa Tengan dan DIY (Studi Kasus di Purwokerto). Laporan Hasil Penelitian. Kerjasama Kantor Bank Indonesia Purwokerto dengan Fakultas Ekonomi UNSOED.

Asogwa, B.C., and V. A. Okwoche. (2012). Marketing of Agricultural Produce among Rural Farm Households in Nigeria: The Case of Sorghum Marketing in Benue State. International Journal of Business and Social Science, 3 (13), July 2012.

Babula, R.A. and D.A. Bessler, (1990). The Corn-Egg Price Transmission Mechanism, Southern Journal of Agriciltural Economics, December 1990

Badan Pusat Statistik. (2013). Banyumas dalam Angka 2013. Badan Pusat Statistik.

Bank Indonesia. (2008). Outlook Ekonomi Indonesia 2008-2013: Organisasi Industri dan Pembentukan Harga di Tingkat Produsen. Juli 2008. Bank Indonesia.

______. (2011). Pemetaan Struktur Pasar dan Pola Distribusi Komoditas Strategis Penyumbang Inflasi di Wilayah KBI Purwokerto serta Implika’sinya terhadap Kebijakan Pengendalian Harga Komoditas. Laporan Hasil Penelitian. Kerjasama Kantor Bank Indonesia Purwokerto dengan Fakultas Ekonomi UNSOED.

______. (2015). Kajian Penguatan Kerja sama Antar Daerah Eks Karesidenan Banyumas – 2015. Laporan Hasil Penelitian. Kerjasama Kantor Bank Indonesia Purwokerto dengan Fakultas Ekonomi dan Bisnis UNSOED.

Bor, Ö., M. Ismihan, A. Bayaner. (2014). Asymmetry in farm-retail price transmission in the Turkish fluid milk market, NEW MEDIT N. 2/2014

Fuentes-Pila, J., C. Rodríguez-Monroy, R. Antelo, J. Torrubiano, and L. Roldán. (2007). Designing Food Supply Chains: An Application of Lean Manufacturing and Lean Supply Chain Paradigms to the Spanish Egg Industry. Paper prepared for presentation at the 1st International European Forum on Innovation and System Dynamics in Food Networks Officially endorsed by the European Association of Agricultural Economists (EAAE), Innsbruck-Igls, Austria February 15-17, 2007.

Gujarati, D.N. and D.C. Porter. (2009). Basic Econometrics, fifth edition. New York: McGraw-Hill Companies, Inc.

Kristiansen, S, (2003), Information Asymmetry and Economic Concentration: The Case of Hens and Eggs in Eastern Indonesia, ESA Working Paper No. 03-21, December 2003, Agricultural and Development Economics Division, The Food and Agriculture Organization of the United Nations

Kuncoro, M. (2007). Ekonomika Industri Indonesia, Menuju Negara Industri Baru 2030?. Yogyakarta: Penerbit ANDI.

Magesa, M.M., K. Michael, and J. Ko. (2014). Access to Agricultural Market Information by Rural Farmers in Tanzania. International Journal of Information and Communication Technology Research, 4(7), July 2014

Martin, S. (1994). Industrial Economics, Economic Analysis and Public Policy, 2nd edition. New York: Macmillan Publishing Company.

Memon I.N., Noonari S., Asif M., Shah S.T., Peerzado M.B., Panhwar G.M., Sethar A.A., Kalwar G.Y., Bhatti M.A., Jamro A.S, (2015). Economic Analysis of Poultry Egg Production in Quetta District Balochistan, Journal of Fisheries & Livestock Production, Vol.3, Issues 3

Muhammed, A.B., S.A. Mohammed, A.F A.F Ayanlere and O.K Afolabi. (2013). Evaluation of Poultry Egg Marketing in Kuje Area Council Municipality of F.C.T Abuja, Nigeria. Greener Journal of Agricultural Sciences, 3 (1), 068-072, January 2013.

Muiruri K.F., and W. Muturi. (2013). Factors Affecting Egg Supply Business In Kenya: A Survey Of Thika West District. European Journal of Business and Social Sciences, 2(4), 32-48, July 2013.

Naspettia, S., N. Lampkin, P. Nicolasc, M. Stolzed, and R. Zanolia. (2011). Organic Supply Chain Collaboration: A Case Study in Eight EU Countries. Journal of Food Products Marketing,17, 141–162, Taylor & Francis Group, LLC.

Nicholson, W, and C. Snyder. (2012). Microeconomic Theory: Basic Principles and Extentions, 11th edition. South-Western. Cengange Learning. United States.

Otto, D, M. Ibarburu, L. Schutz. (2013). Economic Importance of the Iowa Egg Industry, Iowa State University

Peltzman, S. (2000). Prices Rise Faster than they fall. Journal of Political Economy, 108(3), 466-502.

Porter, M.E. (1990). The Competitive Advantage of Nations. The Free Press. New York: A Division of Macmillan, Inc.

Paranata, A. & Umam, A.T. 2015. Pengaruh Harga Bawang Merah terhadap Produksi Bawang Merah di Jawa Tengah. JEJAK Journal of Economics and Policy, 8(1), 30-37.

Pritchard, NT, (1969). A Framework for Analysis of Agricultural Marketing System in Developing Countries, Agricultural Economics Research, Vol.21, No.3, July 1969

Rudiyanto, Achmad Afif. Pola Kemitraan Koperasi Sejahtera Abadi Dalam Meningkatkan Keuntungan Petani Cabai. JEJAK: Jurnal Ekonomi dan Kebijakan, [S.l.], v. 7, n. 2, sep. 2014. ISSN 2460-5123.

Samuelson, P. A., & Nordhaus, W. D. (2005). Economics, 18th edition. New York: The McGraw-Hill Companies.

Scherer, F.M. 1996. Industry Structure, Strategy, and Public Policy. New York: Harper Collins College Publishers.

Sumner, D. A., H. Gow, D. Hayes, W. Matthews, B. Norwood, J. T. Rosen-Molina, and W. Thurman, (2010). Economic and market issues on the sustainability of egg production in the United States: Analysis of alternative production systems, Emerging Issues: Social Sustainability of Egg Production Symposium, the Poultry Science Association, American Society of Animal Science, and American Dairy Science Association in Denver, Colorado, July 11–15, 2010

Tweeten, L.G. and C.L. Quance. (1969). Positivistic Measures of aggregate Supply Elasticities: Some new Approaches. American Journal of Agricultural Economics, Vol. 51, 342-352.

Vavra, P., and B. K. Goodwin. (2005). Analysis of Price Transmission Along the Food Chain. OECD Food, Agriculture and Fisheries Working Papers, No. 3, 2005. OECD Publishing.

Wiedemann, S.G., and E.J. McGahan. (2011). Environmental Assessment of an Egg Production Supply Chain using Life

Windhorst, H-W. (2014). Global Egg Production Dynamic - Past, Present and Future of A Remarkable Success Story, International Egg Commision

Refbacks

  • There are currently no refbacks.




Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.