Asymmetry in Farm-Retail Price Transmission: The Case of Chili Industry in Indonesia

Sahara, Sahara; Wicaksena, Bagus

doi:10.29244/jekp.2.1.1-13

Cited by 3 publications

(5 citation statements)

References 20 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Dalam hal ini, suatu rantai pemasaran dikatakan efisien dan terintegrasi secara vertikal apabila menunjukkan pola interaksi harga antar lembaga pemasaran mampu ditransmisikan secara simetri (Goodwin, 2006;Ruslan, 2016). Sedangkan transmisi harga dikatakan asimetri (tidak sempurna) apabila informasi harga lambat diterima petani (Sahara & Wicaksena, 2013;Ashari, 2019).…”

Section: Abstrakunclassified

Analisis Efisiensi Pemasaran Jagung di Provinsi Gorontalo

Ashari

Syamsir²

2021

J. Indones. Agribus

View full text Add to dashboard Cite

Price fluctuations at the producer and consumer levels determine the performance of the maize market in Gorontalo Province. This will affect the decisions and ability of the corn marketing agencies involved in responding to price changes. The slow response of marketing agencies to changes in maize prices indicates inefficient market conditions in terms of prices. In addition, differences in market power between marketing agencies indicate inefficiencies in marketing maize from an operational perspective. Therefore, this research was conducted with the aim of 1) analyzing market integration and transmission of maize prices between producers and consumers, 2) analyzing the distribution of marketing margins in the maize marketing channels in Gorontalo Province. The research data used is in the form of weekly price data at the producer and consumer levels for 148 weeks, from March 2016 to March 2019 and added data from direct interviews with the marketing actors involved, namely farmers as many as 30 people, while sampling of traders was carried out by snowball sampling technique. Data analysis used the Asymmetric Error Correction Model (AECM), marketing margin and farmer share for each channel. The results showed that the transmission of maize prices at the producer and consumer level is symmetrical in the long run indicating market integration. The smallest marketing margin and the largest farmer share are in Channel III, where marketing is done directly to an exporter. Corn marketing in Gorontalo Province shows price transmission and market integration as well as high farmer share value in each channel, so it can be concluded that marketing is efficient.

show abstract

Section: Abstrakunclassified

Analisis Efisiensi Pemasaran Jagung di Provinsi Gorontalo

Ashari

Syamsir²

2021

J. Indones. Agribus

View full text Add to dashboard Cite

show abstract

“…Thus, the study aims to analyze the transmission price of white pepper in the Bangka Belitung Province Island from the producer to the international trade. Balcombe, Bailey, & Brooks, 2007;Cutts & Kristen, 2006;Koutroumanidis et al 2009;Miller & Hayenga, 2001in Sahara & Wicaksena (2013 argued that the asymmetric price transmission was crucial to be conducted to provide information about the welfare of producers and consumers as well as about price efficiency at a marketing channel.…”

Section: Source: Ipc 2017 Figure 2 Real Price Movement Of Muntok White Pepper In Producers Exporters and World Markets January 2007 -Decementioning

confidence: 99%

“…It was used to investigate the long-term relationship amongst the price of a particular commodity in a region (Firdaus & Gunawan, 2012). The cointegration test in this study uses the procedure of Johansen & Juselius (1990), as implemented by Reziti & Panagopoulos (2008), and Sahara & Wicaksena (2013), with the formula stated as follows:…”

Section: Cointegration Testmentioning

confidence: 99%

“…The direction of white pepper transmission prices among producer markets, exporter markets, and world markets was determined by using the Engle and Granger Causality test. According to Sahara & Wicaksena (2013) that the Engle and Granger causality test is used to investigate the causality relationship between prices at producer level and prices at the consumer level. Causality test in this study follows the application of Reziti & Panagopoulos (2008), Koutroumanidis et al (2009), and Sahara & Wicaksena (2013) based on the methodology proposed by Engle and Granger (1987), with the formula stated as follow:…”

Section: Causality Testmentioning

confidence: 99%

See 1 more Smart Citation

Muntok White Pepper Price Transmission in Bangka Belitung Island Province

Purwasih¹,

Pranoto²,

Atmaja³

2020

agr

View full text Add to dashboard Cite

was IDR 72,531 per kg on the producer market, IDR 80,622 per kg on the export market, and IDR 99,017 per kg on the world market. Based on the data, there is a large marketing margin between the producer market and the export market, IDR 8,091 per kg. While, the margin between the export market and the world market was IDR 18,395 per kg. The present research aims to analyze the transmission of white pepper prices in the Bangka Belitung Islands Province among the three markets. The Asymmetric Error Correction Model (AECM) was used as the model to analyze the transmission of white pepper prices in Bangka Belitung Island Province from producers to exporters, from producers to world market, and from exporters to world market. The transmission of white pepper prices from the three markets shows that in the short period it runs asymmetrically, whereas in the long period it runs symmetrically. Conversely, the transmission of white pepper prices from the world market to the exporters market runs symmetrically in the short term but it runs asymmetrically in the long term.

show abstract

“…This study aims to analyze the behavior of horticultural product pricing practices of the retailers in the traditional market. Previous studies have focused on price transmission and market integration of horticulture products from the retail market to the farm level [6,7,8]. This research is novel in explaining the aspects of retail decisionmaking in the traditional market, which has been seen as acting only as a price taker.…”

Section: Introductionmentioning

confidence: 99%

Sustainable horticultural products in Indonesian traditional retail market

Harianto

Herawati

Harmini

2022

IOP Conf. Ser.: Earth Environ. Sci.

View full text Add to dashboard Cite

Red chili, cayenne pepper, shallot, and garlic are horticultural products that are very important for the essential ingredients of various cuisines in Indonesia. Although household expenditure on those products is relatively small compared to total food expenditure, the government pays great attention to its price movements. This study aims to analyze price behaviour at the retailer level in traditional markets. The data used in the study are obtained from the National Strategic Food Price Information Center (PIHPSN) of the Central Bank of Indonesia, the daily price data for horticultural products at the wholesale and retail market levels. The regression model built in this study was estimated using the 3SLS method. The results showed that horticultural product retailers in traditional markets tried to stabilize prices. However, the results cannot conclusively conclude the existence of averaging price practices. This research also showed a spill over effect of rice’s retail price on the price of horticultural products in traditional markets. This study’s results are expected to help formulate government policies to stabilize food prices at the consumer level.

show abstract

Asymmetry in Farm-Retail Price Transmission: The Case of Chili Industry in Indonesia

Cited by 3 publications

References 20 publications

Analisis Efisiensi Pemasaran Jagung di Provinsi Gorontalo

Analisis Efisiensi Pemasaran Jagung di Provinsi Gorontalo

Muntok White Pepper Price Transmission in Bangka Belitung Island Province

Sustainable horticultural products in Indonesian traditional retail market

Contact Info

Product

Resources

About