Market Efficiency and Income Level of Red Chili Farmers who use the Auction Market in Siborong-Borong Subdistrict, North Tapanuli Regency, North Sumatra
Journal Title: IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) - Year 2019, Vol 12, Issue 1
Abstract
This study aims to determine the level of income of red chilli farmers who sell to the auction market and outside the auction market and the efficiency of marketing chili in Siborong-Borong Subdistrict through the auction market and non auction markets. The data used are primary data with 70 respondents. The technique of data collection is done by means of interviews, observations, and questionnaires using the purposive sampling method. The results of this study indicate the income of red chilli farmers in Siborong-Borong Subdistrict for farmers who sell to the auction market in the amount of Rp76,660,587 per planting season, far greater than the income of farmers selling outside the auction market which is Rp10,379,260. Based on the results of the average difference test, there is a significant difference with a 95% confidence level, between farmers who sell directly to the auction market with farmers selling red chili outside the auction market. The level of marketing efficiency between the auction market and outside the auction market does not have distant difference. The marketing efficiency level between the auction market and outside the auction market does not have much difference. The level of marketing efficiency can be seen from the number of marketing efficiency and also in terms of the short length of the marketing chain in the research area. Channel I which is the most efficient with Farmer’s share amounting to 73.33% and trading costs 5903.2 (Rp/Kg). This can be explained that the main purpose of the auction market is to prosper local farmers who cultivate red chili. Channel II pattern Farmer’s amount shares 65% of trading costs 5903.2 (Rp/Kg). Channel III pattern is still in the efficient category because Farmer's share is at 65%, trading costs are 7043.2 (Rp/Kg), but in fact it involves the length of the marketing channel. Then it can be concluded from the three marketing channel patterns categorized as efficient and the most efficient marketing channel is channel III.
Authors and Affiliations
Sarah Gracia, Kelin Tarigan, Sri Fajar Ayu
Keywords
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- EP ID EP434859
- DOI 10.9790/2380-1201022833.
- Views 60
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